§ 515F.25 — Disapproval of a rate filing in a competitive market

Iowa § 515F.25

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 515F: CASUALTY INSURANCE

Text

1. Ifthecommissionerbelievesthataninsurer’sratefilinginacompetitivemarketviolates
the requirements of sections 515F.4 and 515F.5, the commissioner may require the insurer to
file supporting information. If after reviewing the supporting information the commissioner
continues to believe that the filing violates sections 515F.4 and 515F.5, the commissioner shall
notify the insurer of the insurer’s right to petition for a hearing on any subsequent order
relating to the filing.
2. The commissioner may disapprove prefiled rates that have not become effective.
§515F.25, CASUALTY INSURANCE 12
However, the commissioner shall notify the insurer whose rates have been disapproved of
the insurer’s right to petition for a hearing on the disapproval within thirty days after the
disapproval.
3. If the commissioner disapproves a filing in a competitive market, the commissioner
shall issue an order specifying the reasons the filing fails to meet the requirements of sections
515F.4and515F.5. Forratesineffectatthetimeofdisapproval,thecommissionershallinform
the insurer within a reasonable period of time the date when further use of the rates for
policies or contracts of insurance is prohibited. The order shall be issued within thirty days
of disapproval, or within thirty days of a hearing on the disapproval if a hearing is held. The
order may include a provision for premium adjustment for the period after the effective date
of the order for policies or contracts in effect on the date of the order.
4. Wheneveraninsurerhasfilednolegallyeffectiveratesasaresultofthecommissioner’s
disapproval of a filing, the commissioner shall on request of the insurer work with the insurer
to develop interim rates for the insurer that are sufficient to protect the interest of all parties
and the commissioner may order that a specified portion of the premium be placed in an
escrow account approved by the commissioner. When new rates become legally effective,
the commissioner shall order the escrowed funds or any overcharge in the interim rates to
be distributed appropriately. The commissioner may waive distribution if the commissioner
determines that the amount involved would not warrant such action.