                                 CODE OF VIRGINIA

RATE FILINGS BY INSURER; SUPPORTING INFORMATION (§ 38.2-2003)

A. Each insurer writing in this Commonwealth a class of insurance to which this
chapter applies shall file with the Commission every manual of classifications,
minimum rate, class rate, rating schedule, rating plan, rating rule, and every
modification of any of the foregoing that it proposes to use. Every filing shall
indicate the character and extent of coverage contemplated. When a filing is not
accompanied by the information upon which the insurer supports the filing, and
the Commission does not have sufficient information to determine whether the
filing meets the requirements of this chapter, the Commission may require the
insurer to furnish the information upon which it supports the filing. A filing
and any supporting information shall be a public record. Upon filing any rate to
which this chapter is applicable, the insurer shall give notice to the Division
of Consumer Counsel of the Office of the Attorney General that such rate has
been filed with the Commission and such insurer shall so certify to the
Commission in its rate filing. For the purposes of this section, a group or
fleet of insurers operating under the same general management may be considered
an insurer.

B. Each insurer shall submit with each rate filing so much of the following
information as deemed appropriate by the Commission:

   1. Number of exposures;

   2. Direct premiums written;

   3. Direct premiums earned;

   4. Direct losses paid identified by such period as the Commission may require;

   5. Number of claims paid;

   6. Direct losses incurred during the year, direct losses incurred during the
   year which occurred and were paid during the year, and direct losses incurred
   during the year which were reported during the year but were not yet paid;

   7. Any loss development factor used and supporting data thereon;

   8. Number of claims unpaid;

   9. Loss adjustment expenses paid identified by such period as the Commission
   may require;

   10. Loss adjustment expenses incurred during the year, loss adjustment
   expenses incurred during the year for losses which occurred and were paid
   during the year, and loss adjustment expenses incurred during the year for
   losses which were reported during the year but were not yet paid;

   11. Other expenses incurred, separately by category of expense, excluding loss
   adjustment expenses;

   12. Investment income on assets related to reserve and allocated surplus
   accounts;

   13. Total return on allocated surplus;

   14. Any loss trend factor used and supporting data thereon;

   15. Any expense trend factor used and supporting data thereon; and

   16. Such other information as may be required by rule of the Commission,
   including statewide rate information presented separately for Virginia and
   each state wherein the insurer writes the line, subline or rating
   classification for which the rate filing is made and which the Commission
   deems necessary for its consideration.

C. Where actual experience does not exist or is not credible, the Commission may
allow the use of estimates for the information required by subdivisions 1
through 15 of subsection B of this section and may require the insurer to submit
such information as the Commission deems necessary to support such estimates.

D. The Commission shall develop uniform statements or formats specifying the
information categories specified in this section. Such statements or formats
shall be utilized by all insurers in all rate filings.

E. In determining the appropriateness of rates for credit involuntary
unemployment insurance and credit property insurance, the Commission may not
approve any rate that is calculated based upon loss experience producing a loss
ratio of less than forty percent on and after January 1, 2001, forty-five
percent on and after January 1, 2003, and fifty percent on and after January 1,
2005. For the purposes of this subsection, loss experience includes: paid
losses, paid loss adjustment expense, any change in case reserves, change in
incurred but not reported losses, and any special considerations for catastrophe
or comprehensive coverage.

HISTORY: Code 1950, §§ 38-253.26, 38-253.72; 1950, p. 381; 1952, c. 317, §
38.1-241; 1972, c. 836; 1973, c. 504; 1986, c. 562; 1987, c. 697; 1988, c. 189;
2000, c. 526.