§ 44-7504 — Terms, defined

For purposes of the Property and Casualty Insurance Rate
and Form Act:
(1) Advisory organization means any entity, including its
affiliates or subsidiaries, which (a) has majority ownership or control by
two or more insurers and assists two or more insurers in activities related
to ratemaking, the promulgation of policy forms, or related matters or (b)
makes the same prospective loss cost or policy form filings on behalf of or
to be available for two or more insurers. For purposes of this subdivision,
a group of insurers under common ownership or control shall be considered
a single insurer. Advisory organization does not include joint reinsurance
pools, joint underwriting pools, or insurers engaged in joint underwriting;
(2) Classification means the process of grouping insureds
with similar loss or expense characteristics so that differences in losses
and expenses may be recognized;
(3) Client
means client as defined in section 48-2702 ;
(4) Director means the Director of Insurance;
(5) Exempt commercial policyholder
means an entity to which specific aspects of rate or policy form regulation
do not apply or have been relaxed in accordance with rules and regulations
adopted and promulgated pursuant to section 44-7515 ;
(6) Expense means that portion
of a rate attributable to acquisition, field supervision, collection expense,
general expense, taxes, licenses, and fees. Expense does not include loss
adjustment expense;
(7) Experience rating plan
means a rating formula and related procedures that use past loss experience
of an individual policyholder to forecast future losses by measuring the policyholder's
loss experience against the expected losses for policyholders in that classification
to produce a prospective premium credit, debit, or unity modification;
(8) Joint reinsurance pool
means an ongoing voluntary arrangement pursuant to which two or more insurers
participate in the reinsurance of risks written by one or more member insurers
and reinsured by one or more other member insurers. For purposes of this subdivision,
a group of insurers under common ownership or control shall be considered
a single insurer. A joint reinsurance pool may operate through an association,
syndicate, or other arrangement;
(9) Joint underwriting means
a voluntary arrangement established on an individual risk basis by which two
or more insurers jointly contract to provide coverage for an insured. For
purposes of this subdivision, a group of insurers under common ownership or
control shall be considered a single insurer. Joint underwriting does not
include any arrangement by which the participants are reinsuring the direct
obligation of another risk-assuming entity;
(10) Joint underwriting pool
means an ongoing voluntary arrangement pursuant to which two or more insurers
participate in the sharing of risks written as their direct obligations according
to a predetermined basis and the insurance remains the direct obligation of
the pool participants. For purposes of this subdivision, a group of insurers
under common ownership or control shall be considered a single insurer. A
joint underwriting pool may operate through an association, syndicate, or
other arrangement;
(11) Loss adjustment expense
means the expense incurred by an insurer in the course of settling claims;
(12) Master
policy means master policy as defined in section 48-2702 ;
(13) Multiple
coordinated policy means multiple coordinated policy as defined in section 48-2702 ;
(14) Policy form means all
policies, certificates, or other contracts providing insurance coverage. Policy
form includes bonds and includes riders, endorsements, or other amendments
to the policy form;
(15) Premium means the cost
of insurance to the policyholder after all audit adjustments have been made
and any dividends payable have been subtracted;
(16) Professional
employer organization means professional employer organization as defined
in section 48-2702 ;
(17) Prospective
loss cost means that portion of a rate intended to provide for expected losses
and loss adjustment expenses. Prospective loss costs may provide for anticipated
special assessments. Prospective loss costs do not include provisions for
profits, dividends, or expenses other than loss adjustment expenses;
(18) Rating system means the
information needed to determine the applicable rate or premium including rates,
any manual or plan of rates, classifications, rating schedules, minimum premiums,
policy fees, payment plans, rating plans or rules, anniversary rating date
rules, and other similar information. Rating system does not include dividend
rating plans or other provisions for the possible payment of dividends if
such dividends are declared by the insurer's board of directors and are not
guaranteed;
(19) Special assessments means
guaranty fund assessments made pursuant to section 44-2407 , Workers' Compensation
Trust Fund assessments made pursuant to section 48-162.02 , residual market
assessments made pursuant to section 44-3,158 or 44-7528 , and similar assessments.
Special assessments are not expenses or losses;
(20) Statistical agent means
an entity that, for the purpose of fulfilling the statistical reporting obligations
of two or more insurers under the act, collects or compiles statistics from
two or more insurers or provides reports developed from these statistics to
the director. For purposes of this subdivision, a group of insurers under
common ownership or control shall be considered a single insurer; and
(21) Supporting information
means the experience and judgment of the filer and the experience or data
of other insurers or advisory organizations relied upon by the filer, the
interpretation of any other data relied upon by the filer, descriptions of
methods used in developing a rating system, and any other information required
by the director to be filed.

Legislative History

Source: Laws 2000, LB 1119, § 4; Laws 2001, LB 4, § 1; Laws 2007, LB117, § 25; Laws 2010, LB579, § 12.