                                 CODE OF VIRGINIA

DEFINITIONS (§ 38.2-1901)

As used in this chapter:
		&#8220;Classification system&#8221; or &#8220;classification&#8221; means the
plan, system, or arrangement for grouping risks with similar characteristics or
a specified class of risk by recognizing differences in exposure to hazards.
		&#8220;Client company&#8221; shall have the same meaning ascribed to it in §
65.2-101.
		&#8220;Coemployee&#8221; shall have the same meaning ascribed to it in §
65.2-101.
		&#8220;Experience rating&#8221; means a statistical procedure utilizing past
risk experience to produce a prospective premium credit, debit, or unity
modification.
		&#8220;Market segment&#8221; means any line or class of insurance or, if it is
described in general terms, any subdivision of insurance or any class of risks
or combination of classes.
		&#8220;Professional employer organization&#8221; shall have the same meaning
ascribed to it in § 65.2-101.
		&#8220;Professional employer services&#8221; means services provided to a
client company pursuant to a written agreement with a professional employer
organization, including, at a minimum, the payment of wages of the coemployees,
the reservation of the right of direction and control over the coemployees, and
the responsibility for the withholding and payment of payroll taxes of the
coemployees.
		&#8220;Prospective loss costs&#8221; means historical aggregate losses and
loss adjustment expenses projected through development to their ultimate value
and through trending to a future point in time. Prospective loss costs do not
include provisions for profit or expenses other than loss adjustment expenses.
		&#8220;Rate service organization&#8221; means any entity, including its
affiliates or subsidiaries, which either has two or more member insurers or is
controlled either directly or indirectly by two or more insurers, other than a
joint underwriting association under § 38.2-1915, which assists insurers in
ratemaking or filing by (i) collecting, compiling, and furnishing loss
statistics; (ii) recommending, making, or filing prospective loss costs or
supplementary rate information; or (iii) advising about rate questions, except
as an attorney giving legal advice. Two or more insurers having a common
ownership or operating in this Commonwealth under common management or control
constitute a single insurer for purposes of this definition.
		&#8220;Retrospective rating plan&#8221; means a rating plan that adjusts the
premium for the insurance to which it applies on the basis of losses incurred
during the period covered by that insurance.
		&#8220;Statistical plan&#8221; means the plan, system, or arrangement used in
collecting data for rate making or other purposes.
		&#8220;Supplementary rate information&#8221; includes any manual or plan of
rates, experience rating plan, statistical plan, classification, rating
schedule, minimum premium, or minimum premium rule, policy fee, rating rule,
rate-related underwriting rule, and any other information not otherwise
inconsistent with the purposes of this chapter required by the Commission.
		&#8220;Supporting data&#8221; includes:

1. The experience and judgment of the filer and, to the extent the filer wishes
or the Commission requires, the experience and judgment of other insurers or
rate service organizations;

2. The filer&#8217;s interpretation of any statistical data relied upon;

3. Descriptions of the actuarial and statistical methods employed in setting the
rates; and

4. Any other relevant information required by the Commission.

HISTORY: 1973, c. 504, §§ 38.1-279.30, 38.1-279.40; 1986, c. 562; 1990, c.
596; 1993, c. 985; 1997, c. 153; 2000, cc. 624, 718.