1. Rate Filing Best Practices Alaska Sarah McNair-Grove, FCAS, MAAA Actuary Alaska Division of Insurance

2. Complete Paper Filings –2 stamped envelopes –3 copies of transmittal document –One copy of filing material and supporting documents SERFF Filings –State specific fields completed –Previous state tracking number is required field

3. Complete Filing method identified –Flex rate –File and use –Prior approval Revisions or replacements –Prior state identification number –Marked copy showing revisions

4. Complete Resubmission –Withdrawn or disapproved state identification number –Address all questions raised Effective Date Regulation 3 AAC 31.200 – 217; 3 AAC 31.225 Bulletin B05-09

5. Loss Cost Adjustment Filings Include completed Reference Filing Adoption Forms –Bulletin 96-05 Rate level change calculation should be done correctly Support for deviations must be included http://www.commerce.state.ak.us/insurance/bulletins/96-05.htm

6. Loss Cost Adjustment Filings Rating organization filing that is in effect on effective date of loss cost adjustment filing must be adopted 3 AAC 29.220; 3 AAC 29.240; 3 AAC 31.240

7. Filing Methods – Prior Approval Prior approval –Medical malpractice –Workers’ compensation –Assigned risk auto 15-day waiting period with a 15-day extension Response period of 30 days with a 15 day extension Failure to respond or submission of an incomplete response will result in withdrawal of filing AS 21.39.041

8. Filing Methods – Flex Rate All lines of business except medical malpractice, workers’ compensation and assigned risk Cumulative rate change calculated from effective date to 12 months before effective date is not greater than +/-10% Effective date may not be earlier than date received by division

9. Filing Methods - Flex Rate All rate standards apply to flex rate filings including not inadequate, excessive or unfairly discriminatory Filing must include –Overall rate level calculation –Expenses including consideration of investment income –Exhibit showing rate filings effective within 12 months immediately preceding proposed effective date by company –Maximum and minimum rate change

10. Filing Methods – Flex Rate Additional supporting information may be requested if needed to determine that filing complies with Alaska law Director may issue an order disapproving the filing if it does not comply with Alaska law AS 21.39.210; 3 AAC 31.225(c)(3)

11. Filing Methods – File and Use All other rate filings that are not prior approval or eligible for flex rating All supplementary rating information, including rule filings – 3 AAC 31.210(3) AS 21.39.220

12. Content Support must be sufficient so that director can determine the filing meets Alaska law –Trend –Loss development –Credibility –Expenses –Investment income –Description of methodology used –Alaska specific premium and loss data

13. Schedule Rating Plans Filing must include –Eligibility criteria –Description of each risk characteristic Broad categories like Classification Peculiarities are not acceptable –Range of debits or credits for each risk characteristic –Total maximum debit or credit –Previous plan must be identified and withdrawn if a revision is made

14. Schedule Rating Plans Acknowledgment of compliance –Uniform application to all eligible insureds –Apply at each policy renewal –Debit or credit only for risk characteristics described in plan –Documentation worksheet 3 AAC 29.420; 3 AAC 29.430

15. Other Filings “Me-Too” Filings –Demonstrate applicability to filer –Approved in Alaska? Identify approved filing (a) Rate Filings –Manual rules describing how rate will be calculated Formulas, rating factors, guidelines, risk characteristics –Order R94-02