                                 CODE OF VIRGINIA

RATE MAKING AND DELEGATION OF FILING OBLIGATION (§ 38.2-1908)

A. An insurer shall establish rates and supplementary rate information for any
market segment based on the factors in &#xA7; 38.2-1904. A rate service
organization shall establish prospective loss costs and supplementary rate
information for any market segment based on the factors in &#xA7; 38.2-1904. An
insurer may use supplementary rate information prepared by a rate service
organization and may use prospective loss costs determined by the rate service
organization with modification for its own expense and profit. The insurer may
modify the prospective loss costs based on its own loss experience as the
credibility of that loss experience allows.

B. An insurer may discharge its obligation to file supplementary rate
information under subsection A of &#xA7; 38.2-1906 by giving notice to the
Commission that it uses supplementary rate information prepared and filed with
the Commission by a designated rate service organization of which it is a
member, subscriber, or service purchaser. The Commission may by order require an
insurer to provide information in addition to that filed by the rate service
organization. The insurer&#8217;s supplementary rate information shall be that
filed from time to time by the rate service organization, including any
amendments to the supplementary rate information, subject to modifications filed
by the insurer.

C. Every insurer shall adhere to the uniform classification system, uniform
experience rating plan, and uniform statistical plan approved by the Commission
in the provision of insurance defined in &#xA7; 38.2-119. An insurer may develop
subclassifications of the uniform classification system upon which rates for
insurance defined in &#xA7; 38.2-119 may be made; however, such
subclassification must first be filed with and approved by the Commission. An
insurer filing such subclassifications must certify to the Commission that the
data it produces can be reported in a manner consistent with the uniform
statistical plan and uniform classification system of its designated rate
service organization.

HISTORY: 1973, c. 504, § 38.1-279.36; 1976, c. 275; 1982, c. 201; 1986, c. 562;
1987, c. 697; 1990, c. 596; 1993, c. 985.