515A.7 Uniform rating plans and deviations. 1. a. Every insurer shall adhere to the filings made on its behalf by a rating organization except that any such insurer may file a deviation from the class rates, schedules, ratingplans, or rules, or a combination thereof for approval by the commissioner. The deviationfiled shall specify the basis for the modification and a copy shall also be sent simultaneouslyto such rating organization. In considering the deviation filed, the commissioner shall give consideration to the available statistics and the principles for rate making as providedin section 515A.3. The commissioner shall approve the deviation filed for such insurerif the commissioner finds it to be justified and it shall thereupon become effective. Thecommissioner shall disapprove the deviation filed if the commissioner finds that the deviationdoes not meet the requirements of this chapter. b. A deviation may be filed for approval by the commissioner as follows:(1) An insurer may file for approval by the commissioner of a uniform percentage rate deviation to be applied to the class rates of the rating organization’s filing subject tolimitations as set forth by the commissioner ile for approval by the commissioner of a uniform percentage rate deviation to be applied to the class rates of the rating organization’s filing subject tolimitations as set forth by the commissioner by rule. A rate deviation from the approvedclass rates of a rating organization shall not cause the rate charged a policyholder to exceedthe approved assigned risk rates. (2) A rating organization or insurer may offer retrospective plans in policies which generate at least one hundred thousand dollars in annual countrywide premiums on workers’compensation liability insurance. (3) An insurer may offer large deductible programs on policies which generate at least one hundred thousand dollars in annual countrywide premiums on workers’ compensationliability insurance. The minimum large deductible which may be offered is twenty-five thousand dollars, which may be applied to indemnity and medical losses. (4) An insurer may offer small deductible programs with deductibles in a range of up to ten thousand dollars and which apply only to medical losses. Losses shall be reported on anet basis in accordance with the statistical plan filed by a rating organization. ctibles in a range of up to ten thousand dollars and which apply only to medical losses. Losses shall be reported on anet basis in accordance with the statistical plan filed by a rating organization. (5) An insurer may adopt a schedule rating plan providing for credits or debits in an amount not exceeding the maximum modification allowed as set forth by the commissioner byrule. This amount shall be in addition to the permitted deviations set forth in subparagraphs(1) through (4). (6) The commissioner may authorize other types of deviations by rule when there is no approved rate, schedule, rating plan, or rule applicable to the deviation filed, on file with theinsurance division for a rating organization. 2. The commissioner may adopt rules pursuant to chapter 17A to limit deviations and maximum schedule or rating plan modifications. 3. All dividends shall be paid based upon loss sensitivity. Dividends are deemed a return of profit to insureds. Accordingly, dividends shall not be guaranteed by an insurer withoutregard to profits. Dividends may be offered in conjunction with deviated rates or withscheduled rates or in combination therewith. Accordingly, dividends shall not be guaranteed by an insurer withoutregard to profits. Dividends may be offered in conjunction with deviated rates or withscheduled rates or in combination therewith. For the purposes of this subsection, 'losssensitivity' means the profitability of the policyholder individually or as a member of ahomogenous group. [C50, 54, 58, 62, §515A.7, 515B.7; C66, 71, 73, 75, 77, 79, 81, §515A.7]2008 Acts, ch 1123, §36, 57; 2013 Acts, ch 124, §22 Sat Dec 23 00:48:01 2023 Iowa Code 2024, Section 515A.7 (21, 0)
Iowa Legal Code