PURPOSE: This rule provides procedures for filing or furnishing rates and other information with the Missouri Department of Insurance.

1. (1) The requirements for filing classifications, rates, rating plans, manual rules, policies and forms with the Department of Insurance are as follows:
2. (A) Property Insurance. Submission shall be made within ten (10) days after the effective date;
3. (B) Casualty & Surety Insurance, Except Commercial Casualty Insurance. Submission shall be made within ten (10) davs after the effective date; and
4. (C) Commercial Casualty Insurance. Submission shall be made no later than ten (10) days after the effective date which is requested within the filing, unless the filing produces an increase or decrease exceeding twenty-five \ percent (25%) annually from changes in base rate, rating basis, rating plan, manual rules, territorial definitions or combination of these rating system components, in which case the submission shall be made sixty (60) days prior to the effective date within the filing for prior approval.
5. (2) Commercial Casualty Insurance. Means casualty insurance for business or nonprofit interests, including policies providing liability insurance in-a) multiperil policies, b) farm policies, except farm policies issued in conjunction with or which include fire and extended coverages on owner-occupied habitational property not exceeding two (2) families, c) commercial automobile policies, d) aircraft insurance and e) any other business or commercial type policy.
6. (3) The use of schedule rating plans, individual risk premium modification in a manner which would effectively circumvent the intent of the commercial casualty rating law, sections 379.888, 379.889, 379.890 and 379.893, RSMo, shall be construed to be improper and subject to the disapproval authority set forth in the law.

7. (4) Licensed rating organizations which submit filings on behalf of their members and subscribers must comply with these provisions. Neither reference filings nor adherence to rating organization filings or deviations

   Judith K. Moriarty (B/20/91)’ Secretary 0‘ state

shall circumvent the commercial casualtv insurance rating law. (5) As they distrubute the following to insure, rating organizations are required to submit a copy to the Department of Insurance: manuals of classifications, rules, underwriting rules and rates, rating plans, their modifications and the forms to which these rates are applicable. Rating organization circulars which pertain to future rate, rule or form filings are to be submitted for informational purposes.

1. (A) A member or subscriber of a rating organization may elect in advance, by letter to the Department of Insurance, to adopt all submissions, or the rates, rules or forms for any specific lines or sublines of insurance, of a rating organization containing a proposed effective date on that effective date. The insurer may then give notice to the Department of Insurance that it will not adhere to any specific submission if it does so within ten (IO) days after the rating organization’s proposed effective date.
2. (B) Members and subscribers of a rating organization may notify the Department of Insurance by letter of their election to adopt by reference a specific submission or reference document of the rating organization. This election shall be received within ten (10) days after the insurer’s effective date.

1. (6) Any insurer which elects to use its own rates is required to submit to the Department of Insurance every manual and classification, rule, underwriting rules and rates, every rating plan and every modification of them which it uses and the policies and forms to which these rates are applicable. This submission shall be made as provided by section (1) of this rule.

2. (7) Individual Risk Premium Modification Plans and Schedules Rating Plans.

   1. (A) Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense or both. This rating plan may not allow a total credit or debit of more than twenty-five percent (25%) based on risk characteristics and not more than ten percent (10%) additional credit based on reduction of expenses.
   2. (B) Subsection (7)(A) does not aoulv to __ - experience rating plans:

   3. (C) It shall be impermissible for affiliated insurers within a group under common management or control to shift insurance accounts among the affiliated insurers in order to circumvent the restrictions on schedule rating provided in subsection (7)(A). Any transfer of an insurance account among affiliated insurers will be deemed a violation of

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this rule unless the insured has been given sixty (60) days’ written notice of cancellation/ nonrenewal in accordance with section 379.883, RSMo and the insured has made a written request to be underwritten by the affiliated insurer.

1. (D) All schedule debits and all schedule credits (that is, debits and credits based on risk characteristics) and all additional credits based on reduction of expenses shall be based on evidence that is contained in the file of the insurer at the time the debit or credit is applied. The insurer shall inform the insured in writing in terms sufficiently clear and specific of the basis for any schedule debit or for any schedule credit which is applied. A copy of the written notice to the insured shall be contained in the file of the insurer, remaining there for not less than three (3) years.
2. (E) Workers’ Compensation Insurance rates may not be modified by any rating plan which is described in subsection (7)(A).
3. (F) This rule does not require the filing of individual risk policies by insurance companies when an individual risk is rated in accordance with subsection (7)(A) or by any other individual risk rating plan or by any guide rating Plan or by any Submit to Company for Rating Plan.

Auth: sections 374.045,375&U, 379.321, 379.323.4., 379.440, 379.445, 379.470, 379.475 and 379.480, RSMo (1986) and 383.010.3, RSMo (Cum. Supp. 1990).* This rule was previously filed as 4 CSR 190-16.040. This version of rule filed Dec. 5,1969, effectiue Dec. i5,1969. Amended: Filed June20,1970, effective July 1,197O. Amended: Filed Dee. 20, 1974, effective Dec. 30,1974. Rescinded and readopted: Filed Aug. 4,1987, effective Feb. I, 1988. Amended: Filed Oct. 13, 1989, effective Feb. 1, 1990. Amended: Filed July 13, 1990,effectiueMarch 14,1991. *Original authority: 374.045, RSMo (19671; 375.881, RSMo (19671, amended 1985; 379.321 and 379.323, RSMo (1972); 379.440 and 379.445, RSMo 11947); 379.470, 379.475 and 383.010, RSMo (19751, amended 1977,1978,1985,1986, 1989,199O.