                                 CODE OF VIRGINIA

EXPERIENCE REPORTS AND ADJUSTMENT OF PRIMA FACIE RATES (§ 38.2-3730)

A. Each insurer doing insurance business in this Commonwealth shall annually
file with the National Association of Insurance Commissioners a report of credit
life and credit accident and sickness written on a calendar year basis. Such
report shall utilize the Credit Insurance Supplement-Annual Statement Blank as
then approved by the National Association of Insurance Commissioners. Such
filing shall be made in accordance with and no later than the due date in the
Instructions in the Annual Statement.

B. The Commission shall, on a triennial basis, recalculate rates to determine
the actual loss ratio for each form of insurance and adjust the prima facie
rates, as provided in &#xA7;&#xA7; 38.2-3726 and 38.2-3727, by applying the
ratio of the actual loss ratio to the loss ratio standard set forth in &#xA7;
38.2-3725 to the prima facie rates. The Commission shall publish notice of the
adjusted actual statewide prima facie rates to be used by insurers during the
next triennium and provide an opportunity for a hearing. As set forth in this
section, the following formula shall be used to adjust the prima facie rates:
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			Where PFR is the prima facie rate as provided in &#xA7;&#xA7; 38.2-3726 and
38.2-3727, the Actual Loss Ratio is the ratio of the incurred claims to the
earned premiums at prima facie rates for all companies for the preceding three
years as reported in the Annual Statement Supplements and the Loss Ratio
Standard is the loss ratio provided in &#xA7; 38.2-3725.

HISTORY: 1992, c. 586; 2015, c. 11; 2022, c. 412.