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Indiana Department of Insurance

IDOI > Company Compliance > Accident & Health  > Product Filing Information/Instructions  > 4.3(A) RATE REQUIREMENTS for CREDIT PRODUCTS 4.3(A) RATE REQUIREMENTS for CREDIT PRODUCTS

RATE ADJUSTMENTS for EXISTING PRODUCTS

The Indiana Department of Insurance (IDOI) requests data/information for the following two requirements as part of the rate review process for existing rates and/or forms, if applicable, filed: Implementation Date and Actuarial Memorandum.

Data for requirement I is entered into a SERFF field.

I. IMPLEMENTATION DATE

  1. Enter the date requested for the filing to be implemented.
    1. Date must be a minimum of 60+ days from the submission date.
    2. Date entered may not be the date the filing officially becomes effective.
      1. IDOI will determine the definitive effective date.
      2. If “Upon Approval” is chosen, the filing will not be closed until this field is revised with an actual date.
    3. If date changes during the review process, the following action is needed:
      1. Update SERFF field before the filing is completed and closed.
        1. SERFF field can be revised during a “Post Submission Update” at the time a response is provided for the objection.

II. ACTUARIAL MEMORANDUM

Provide the data listed below in the actuarial memorandum as an attachment under the Supporting Documentation tab in SERFF.

  1. Benefit Structure
    1. Provide sufficient detail for an analysis of the pricing according to Indiana Credit Insurance Regulations.
    2. Provide a copy of the policy form.
    3. Provide any changes from the most recent filing.
    4. Provide the prior SERFF tracking number.
  2. Current Rates
    1. Include a complete set of current rates.
    2. Include the following items and any other guidelines that impact policyholder’s premium payment:
      1. Modal Factors
      2. Geographic Factors
      3. Additional Fees
  3. Proposed Rates
    1. Include a complete set of proposed rates.
    2. Include the following items and any other guidelines that impact policyholder’s premium payment:
      1. Modal Factors
      2. Geographic Factors
      3. Additional Fees
  4. Projected Experience with Requested Rate Change if not using Prima Facie
    (Provide best estimates for the data below.)
    1. Earned Premium
      1. Provide the projected earned premium using realistic assumptions for the following:
        1. Lifetime of product
        2. Anticipated implementation date
    2. Incurred Claims
      1. Provide the anticipated projected incurred claim using realistic assumptions for the lifetime of product
    3. Anticipated Loss Ratios
      1. Provide the anticipated loss ratios for the lifetime of product
  5. Projected Experience without Requested Rate Change if not using Prima Facie
    (Provide best estimates for the date below.)
    1. Earned Premium
      1. Provide the projected earned premium using realistic assumptions for the following:
        1. Lifetime of Product
        2. Anticipated implementation date
    2. Incurred Claims
      1. Provide the anticipated projected incurred claim using realistic assumptions for the lifetime of product
    3. Anticipated Loss Ratios
      1. Provide the anticipated loss ratios for the lifetime of product
  6. Assumptions
    1. Include the following data and a detailed description of the basis for the assumptions used in pricing:
      1. Rate Comparison
        1. Provide sufficient detail on the benefit structure to allow analysis of the pricing from first principles.
        2. Provide a comparison of rates to the Indiana prima facie rates.
          1. Include an explanation of any deviation of these rates.
  7. Deviations
    1. Provide a complete listing of all credit deviations in force in Indiana.
    2. Provide confirmation that details of those deviated rates have been emailed to Mr. George Hicks of the Indiana Department of Financial Institutions at ghicks@dfi.in.gov.
    3. Request that the department of Financial Institutions notify the Department by email compliance@idoi.in.gov
  8. Historical Experience if not using Prima Facie
    (Provide Indiana and Nationwide data for below.)
    1. Earned Premium
      1. Provide the historical earned premium for each calendar year from inception.
      2. Include all premium regardless of ownership of this block.
        1. Provide as much of the earned premium paid in the current year since the last calendar year as possible.
      3. Include the following items and any other changes that impact policyholder’s premium payment:
        1. Fees
        2. Taxes
        3. Modal loading
    2. Incurred Losses
      (Losses should exclude ALR, exclude LAE, show detail of IBNR and indicate the paid-to-date.)
      1. Provide the historical incurred losses for each calendar year from inception.
      2. Include all ownership regardless of ownership of this block.
        1. Provide as much of the earned premium paid in the current year since the last calendar year as possible.
    3. Rate Change History
      (Provide Indiana and Nationwide data for below.)
      1. Provide a three year rate increase history that includes the rate increase percent with a month/year effective date.
      2. Label clearly.
    4. Rate Change Indicated
      (Provide Indiana and Nationwide data for below.)
      1. Provide the rate change indicated to achieve the original target loss ratio.
      2. Label clearly.
    5. Rate Change Requested
      (Provide Indiana and Nationwide data for below.)
      1. Provide the rate change requested.
      2. Provide the desired effective dates.
      3. Label clearly.
  9. Projection of Lifetime Loss Ratio if not using Prima Facie
    1. Provide Historical Experience for the following:
      1. Discounted earned premium and incurred losses using original filed interest rate.
    2. Provide Projected Future Experience for the following:
      1. Projected incurred premium and incurred losses.
      2. Discount at original filed interest rate.
      3. Assume requested rate increase.
      4. Assume no rate increase.
    3. Provide Discounted Lifetime Experience for the following:
      1. Assume requested rate increase.
      2. Assume no rate increase

Attestations

  1. Compliance Attestation
    1. a. Provide a clear statement of complete compliance with the Indiana credit regulation, including but not limited to the section on refunds.

Rate Filing Submittal Guidelines

The following provides additional information to properly submit rate filings:

  • Unless filing approved, do not implement a rate increase as related to manual rates.
  • File proper TOI and Sub-TOI for rate request.