Mich. Admin. Code R. 500.1208 – Expense provisions. | Midpage
Rule 500.1208
Mich. Admin. Code R. 500.1208
Expense provisions.
(By authority conferred on the commissioner of insurance by sections 210 and 2484 of Act No. 218 of the Public Acts of 1956, as amended, being SS500.210 and 500.2484 of the Michigan Compiled Laws)Insurance
(1) The expense portion of a rate shall, with regard to each category of expense, be examined and evaluated independently of the loss portion of the rate. Expenses shall not be presumed to change by the same percentage as losses are anticipated to change.
(2) Predictions of future expense costs shall give due consideration to trends and changes in historical expense levels, in actual or reasonably allocated expenses incurred, and in external expense indices and indicators.