Facts + Statistics
STATE REGULATION OF RATES (1)
| State | Prior Approval |
Modified Prior Approval |
Flex Rating |
File and Use |
Use and File |
State Pre-scribed |
No File- Record Main- tenance |
|---|---|---|---|---|---|---|---|
| AL | Personal lines, medical malpractice and any other type of coverage with an overall rate increase of 10% or more | All rate filings for property/ casualty commercial lines except medical malpractice and any other type of coverage involving a rate increase of 10% or more | |||||
| AK | Medical malpractice | All lines with rate level change not greater than 10% except exempt commercial policyholders and medical malpractice | All lines not qualifying under flex rating except exempt commercial policyholders and medical malpractice | Exempt commercial policyholders; Informational filing | |||
| AZ | All lines except exempt lines and industrial insureds | Exempt lines and industrial insureds | |||||
| AR | Professional liability except officers and directors liability and fiduciary insurance | Personal lines, officers and directors liability, fiduciary insurance | Commercial risks other than professional liability | ||||
| CA | All lines | ||||||
| CO | All lines except exempt commercial policyholders | Exempt commercial policyholders | |||||
| CT | Private passenger automobile territories, employers liability, professional liability insurance for physicians and surgeons, hospitals, advance practice registered nurses and physicians assistants | All personal lines except private passenger automobile territories; all commercial lines except employers liability and professional liability insurance for physicians and surgeons, hospitals, advance practice registered nurses and physicians assistants |
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| DE | All lines except certain large risks (2) | Certain large risks | |||||
| DC | Medical malpractice rate increases of more than 10% | All lines except medical malpractice rate increases of less than 10% and exempt commercial risks | Exempt commercial risks | ||||
| FL | All lines except commercial exempt lines (3) (Option) Motor vehicle except commercial motor vehicles |
All lines except commercial exempt lines (3) (Option) Motor vehicle except commercial motor vehicles |
Exempt commercial lines including commercial motor vehicles | ||||
| GA | Private passenger automobile filings providing only mandatory minimum limits | Rate increases for all lines except private passenger automobile filings providing only mandatory minimum limits and large commercial risks. Rate decreases for all lines except large commercial risks | Large commercial risks | ||||
| HI | All lines | ||||||
| ID | All lines (4) | ||||||
| IL | All lines (5) | ||||||
| IN | All lines except lines issued to commercial policyholders | Insurance issued to commercial policyholders except exempt commercial policyholders | Insurance issued to exempt commercial policyholders |
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| IO | All lines except private passenger automobile and homeowners | Private passenger automobile and homeowners | |||||
| KS | Health care provider liability | All lines except health care provider liability and special risks | Special risks | ||||
| KY | Personal lines and designated commercial lines where rates increase or decrease more than 25% within 12 months, except insurance issued to industrial insureds and exempt commercial policyholders | Rate changes for personal lines and designated commercial lines within the "flex band" are "use and file." Rate changes for personal lines and designated commercial lines outside the "flex band" are "prior approval" | Personal lines and designated commercial lines where rates increase or decrease 25% or less within 12 months, except insurance issued to industrial insureds and exempt commercial policyholders | Govt. entity insured, industrial insured and exempt commercial policyholders | |||
| LA | All lines except exempt commercial policyholders | Exempt commercial policyholders | |||||
| ME | All lines except large commercial policyholders | Large commercial policyholders | |||||
| MD | Medical malpractice, fidelity, financial institutions (6) | All lines except medical malpractice, fidelity, financial institutions | |||||
| MA | Private passenger automobile | All lines except private passenger automobile and large commercial policyholders | Large commercial policyholders | ||||
| MI | All lines except private passenger automobile, homeowners and dwelling fire (Option) and exempt commercial policyholders | Private passenger automobile, homeowners and dwelling fire (7) (Option) | Exempt commercial policyholders | ||||
| MN | Personal lines and professional liability covering individuals. NOTE: Professional liability can receive immediate approval without Department review | Commercial policies except professional liability covering individuals | |||||
| MS | All lines (8) | ||||||
| MO | Medical malpractice insurance | All lines except commercial casualty and commercial property other than medical malpractice insurance; commercial casualty and commercial property other than medical malpractice insurance are filed for informational purposes only | |||||
| MT | All lines | ||||||
| NE | Medical professional liability and nonfleet automobile | All personal and commercial lines except medical professional liability, nonfleet automobile and exempt commercial risks | Exempt commercial risks | ||||
| NV | Personal lines and designated professional liability classes | Commercial lines except designated professional liability classes | |||||
| NH | Medical malpractice for physicians, surgeons and hospitals | Personal lines (9) | Commercial lines except employment practices liability, directors and officers liability, boiler and machinery, medical malpractice for physicians, surgeons and hospitals and policies issued to large commercial policyholders | Employment practices liability, directors and officers liability, boiler and machinery and policies issued to large commercial policyholders | |||
| NJ | Personal lines except private passenger automobile and homeowner rate increases of no more than 5%, decreases or rate changes that are revenue neutral; private passenger automobile rate increases or decreases except statewide average base rate increases of no more than 7% and initial multiple ratings tier filings; medical malpractice rate increases/decreases of more than 15% | Statewide average private passenger automobile base rate increases of no more than 7%; homeowner rate increases of no more than 5% overall, rate decreases or rate changes that are revenue neutral | Medical malpractice rate increases/decreases of not more than 15% | Commercial lines except medical malpractice and special risks | Special risks | ||
| NM | Farmowners and medical malpractice | Personal lines | Commercial lines except medical malpractice and farmowners | ||||
| NY | Vehicles for hire (including buses and school buses) rate increases, private passenger automobile, medical malpractice and territories and classifications (all lines) | Designated commercial lines | All lines except private passenger automobile, vehicles for hire (including buses and school buses) rate increases, designated commercial lines, medical malpractice, inland marine, exempt lines and rating classifications or territories (all lines) | Inland marine and exempt lines | |||
| NC | Private passenger automobile, homeowners, dwelling fire and mobile homeowners | All lines except private passenger automobile, homeowners, dwelling fire and mobile homeowners | |||||
| ND | Personal lines except private passenger auto and homeowners filings of less than 5%; crop hail, farmowners and medical malpractice | Private passenger auto and homeowners filings of less than 5%; commercial lines except crop hail, farmowners and medical malpractice | |||||
| OH | All property lines | Motor vehicle insurance and casualty lines such as homeowners and commercial multi-peril and package policies or programs which contain both property and liability components | |||||
| OK | Medical professional liability | All lines except medical professional liability and "commercial special risks" | Commercial special risks | ||||
| OR | "Prior Review" procedures apply to rate increases greater than 15% for the following specified commercial liability markets: child care, commercial automobile, long haul trucking, D&O, liquor law, municipal, medical professional, nonprofit philanthropic and civil activity, products liability, professional liability other than medical, public official and recreational. "Prior Review" procedures apply to rate increases or decreases exceeding 15% for changes in: total limits base rates, rating basis, rating plans, manual rules, territorial definitions and combination of such rating system components | All lines except specified commercial liability markets subject to prior approval | |||||
| PA | All lines (10) other than motor vehicle except those with rate decreases of 10% or less, small commercial risks with rate increases or decreases of less than 10%, large commercial risks, and motor vehicle filings involving any rate increase and those involving rate decreases in excess of 10% | Lines (10) other than motor vehicle involving rate decreases of 10% or less and small commercial risks with rate increases or decreases of 10% or less | Motor vehicle filings with decreases of 10% or less | Large commercial risks | |||
| PR | All lines except exempt commercial lines | Exempt commercial lines | |||||
| RI | Medical malpractice | Personal lines overall statewide rate increases or decreases and all commercial lines except medical malpractice and commercial special risks | Specifically designated commercial special risks and commercial special risks | ||||
| SC | All lines except exempt lines, personal lines filings which increase or decrease overall rate levels by up to 7% above or below company's existing rate and exempt commercial policies | Personal lines filings which increase or decrease overall rate levels by up to 7% above or below company's existing rate | Exempt lines and exempt commercial policies | ||||
| SD | All lines except exempt commercial policyholders | Exempt commercial policyholders | |||||
| TN | Personal lines insurance with rate increases or decreases of more than 15% and farm | Personal lines insurance with rate increases or decreases of 15% or less | Commercial lines except farm | Lines issued to exempt commercial risk policyholders | |||
| TX | Residential and commercial property, general liability, boiler and machinery, crime, glass, miscellaneous casualty, commercial umbrella and excess liability, farm and ranchowners, medical professional liability, commercial and personal automobile, inland marine, commercial multi-peril, personal casualty (including personal liability and personal umbrella) except exempt lines | Exempt lines | |||||
| UT | All lines except commercial excess and umbrella liability | Commercial excess and umbrella liability | |||||
| VT | Claims made liability | All lines except claims made liability | |||||
| VA | All lines except exempt lines and certain lines issued to large commercial risks | Exempt lines and certain lines issued to large commercial risks | |||||
| WA | Personal lines and medical malpratice | Commercial lines except medical malpractice and large commercial accounts | Large commercial property and casualty accounts | ||||
| WV | All lines except commercial lines other than medical malpractice | Commercial lines except medical malpractice | |||||
| WI | All lines except inland marine | Inland marine | |||||
| WY | Non-competitive markets | All lines except non-competitive markets |
(1) This chart is based on the December, 2012 ISO State Filing Handbook. Generally, this chart reflects the type of state statutory regulation for property and casualty (except surety, fidelity, certain non-filed inland marine insurance, workers compensation and employers liability) insurance rates for insurers. This chart does not set forth the types of state statutory regulation for policy forms, rules or other supplementary rating information, or requirements that may only apply to rating, rate service or advisory organizations. The information contained in this publication was obtained from sources believed to be reliable. ISO, its companies and employees make no guarantee of results and assume no liability in connection with the information herein contained.
(2) Insurance Department advises that it processes all filings under prior approval procedures.
(3) Insurance Department mandates certain notification requirements for sepcified lines.
(4) Idaho Code §41-1439 only set forth record maintenance requirements. However, in Bulletin 91-1 (1/2/91), the Idaho Department of Insurance requests that rates be submitted on a use and file basis.
(5) While there are no statutory provisions for lines other than medical liability, Department of Insurance regulations promulgate filing procedures and requirements.
(6) Certain rate decreases and certain subsequent modifications to such decreases are subject to use and file provisions.
(7) All lines except private passenger automobile, homeowners and dwelling fire may be filed in accordance with prior approval provisions (Mich. Comp. Laws §§500.2406, 500.2408, 500.2606, 500.2608) or file and use provisions (Mich. Comp. Laws §§500.2430, 500.2628).
(8) While Miss. Code Ann. 83-7-2 provides that certain filings of rate adjustments not involving a change in expense relationship or rate classification are subject to “file and use”, the Insurance Department advises that it processes all filings under “prior approval” procedures.
(9) Pursuant to insurance regulations Ins 902, if the commissioner has a consulting actuary or consulting actuarial firm analyze a rate filing, the rate change shall not become effective until the actuarial review is completed, submitted to the insurance department and approved by the commissioner.
(10) Certain filings that decrease approved rates may be submitted on a file and use basis. However, if the commissioner finds the filings unacceptable, he/she must notify the insurer within 15 days.
© Insurance Services Office, Inc., 2002, 2013.
INTERNATIONAL INSURANCE REGULATION
| Country/Region | Description |
|---|---|
|
European Union |
The European Union (EU) is a grouping of 27 European countries which have agreed to a process of cooperation and integration in economic, political and judicial affairs. The body of legislation created at the EU level, which has evolved over several decades, has an important impact on insurance in member states as the EU works to complete the implementation of the Financial Services Action Plan (FSAP) adopted in May 1999. The FSAP has three objectives: a single market for wholesale financial services; open and secure retail markets; and state-of-the-art prudential rules and supervision. |
|
Canada |
There are two levels of insurance supervisory authority: one at the federal level and the other at the local provincial level. The federal regulator is the Office of the Superintendent of Financial Institutions (OSFI), established in 1987 by an act of parliament. The OSFI supervises and regulates all banks and all federally incorporated or registered trust and loan companies, insurance companies, co-operative credit associations, fraternal benefit societies and pension plans with regard to financial solvency, prudential supervision, capital and governance rules, including dynamic capital testing and risk assessment. If a company is incorporated only at a provincial level, the provincial authorities take on the responsibility for the prudential supervision and each province has a superintendent or equivalent, for example, the Financial Services Commission of Ontario in that province. A trend has been evident over the past three or four years for those companies registered only at the provincial level to transfer, with official backing and encouragement, to federal regulation. |
|
Japan |
The insurance supervisory authority is the Financial Services Agency (FSA), a "super-regulator" which is responsible for supervising the entire financial services sector. The FSA was originally established on July 1, 2000 as an agency of the Financial Reconstruction Commission (FRC). However, following a ministerial reorganization, which took place on January 6, 2001, the FRC was abolished and the FSA assumed sole responsibility for financial supervision under the authority of the Cabinet Office. A special minister appointed by the prime minister is responsible for the activities of the FSA, though the organization itself is headed by a commissioner. The current commissioner is Hirofumi Gomi. |
|
China |
The insurance supervisory authority is the China Insurance Regulatory Commission (CIRC), which took over from the original supervisor, the People's Bank of China (PBOC), on January 1, 1999. The CIRC was originally constituted as a government division but was elevated in 2003 to a ministerial public service department, which gives it the same status as China's other financial market regulators, the China Securities Regulatory Commission and the China Banking Regulatory Commission. The CIRC reports to and carries out administrative functions delegated by the State Council. The CIRC responsibilities include:
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Source: Axco Information Services. Detailed information on international insurance markets is available from Axco Information Services at available at http://www.axcoinfo.com or by emailing axco@axcoinfo.com.