1 robert lindquist- president lindquist and associates casualty actuarial society ratemaking seminar...
TRANSCRIPT
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Robert Lindquist- President
Lindquist and Associates
• Casualty Actuarial Society
• Ratemaking Seminar
• March 7-8 2002 Tampa Fla.
• Regulatory Topic #37
• Rate Filing Requirements
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• Property and Casualty Rates
• From Florida Perspective
• Rates/Rules/Forms/
Underwriting Guide
• Personal Property- H.O., M.H.O., D.F.
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Structure/Environment
• Insurance Commissioner- Currently Elected. Also Treasurer, State Fire Marshall, Cabinet.
– Future, merged with Comptroller. Head will be State Chief Financial Officer
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• Major Companies/Results
– See Attached- MRKT Share by Line, L/R Results, Complaint Ratio
– DI4-308- Attached, Direct Profit/Loss Statement by Line Detailed
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Structure/Environment
• F.I.C.- Lobbying, Rade Musulin
• F.H.C.F.- Florida Hurricane Catastrophe Fund– Personal Property, Commercial
Residential– 90%, 75%, 45%– Cov. A+B+C, D?– Payout 1 out of 7 yrs.– Andy Rappaport– Jack Nicholson
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• Primary Statutes
1. Personal Automobile-
627.0651 F.S.
2. Workers Compensation-
627.072 F.S.
3. All Other- 627.062 F.S.
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• 627.062 F.S.- Rate Standards
- Accepted Actuarial Techniques
- 90 day Deemer
- Components
- File/Use or Use/File
- Excessive/Inadequate/Unfairly
Discriminatory
- Catastrophe
- Underwriting Expenses
- Indications, 5 yrs. Cal./Acc. Yr. data
- Recourse (s)
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• Supporting Statutes
- 627.0628; F.H.C.F., Use of Models
- 627.0629; Construction; 3/03
- ; Building Code
- ; Separate Hurricane /Non-Hurr.
Rates
- 627.0654; Sprinkler Credits
- 627.701 ; Hurricane Deductibles
- 627.0645; Annual Rate Filings
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Supporting Ad. Rules
• 4-170.013- Filing Procedures
• 4-170.006- Rate Manual Filings
• 4-170.007- Annual Rate Filings
• 4-170.003- Investment Income
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Supporting Ad. Rules- Cont.
• 4-170.014 - Homeowners Rate Making
(Attached)
- Direct
- Fla. Data
- # Filing Copies
- Applicable Forms
- Indications vs. Support
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• Filing Format
- 3 copies to the Fla. D.O.I.
- Cover page Memo/Shirley
Kerns
Bureau Chief
- Consultant, Letter of Authorization
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• Filing Forms
DI4-582 (Basic)
• Separate coverage forms from Rules/Rates/U.W.
• One (1) Line per filing.
• File/Use or Use/File
• Proposed Effective date(s)– 45 days Renewal
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• Filing Forms- cont.
DI4-583; Use for adoption of
I.S.O. Loss Costs (Not Rules)
; Calculation of Deviation
; Calculation of L.C.M.
; Minimum
Premium/Return Premium
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• Filing Forms- cont.
DI4-585-Certification
DI4-586-Annual Rate Filing Certification
DI4-584-Exemption to Annual Rate Filing
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• Filing Forms- cont.
DI4-595
- Expense Supplement for Independent Filings
- E.L.R.
- U.W. profit
- Net cost of reinsurance
- Private
- F.H.C.F.
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• Detailed Filing Memorandum
Summarize Indexed Filing Material.
Cross Reference Exhibits
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• Indexed Filing Material (i.e.)
- Indications
- I.B.N.R. Factors
- Catastrophe Factor(s) Development
- Rate Comparisons (Attached)
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• Indexed Filing Material – cont.
- Other filings “me too”
- U.L.A.E. Support (Sch. P.)
- Support for C.R.L.
- Support for Premium Trend and Loss Trend (Fast
Track?)
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• Indexed Filing Material- cont.
- New Manual Pages
(Highlight)
- Non- F.H.C.F. Reinsurance Agreements
- M.G.A. Agreement
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• Indexed Filing Material- cont.
- DI4-1102, Rating Example by county Split
Hurricane/Non-Hurr.
- DI4-1103, Summary of overall % change by
Form
- DI4-1104, By Form by County % change
(Example)
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• Indexed Filing Material- cont.
- If applicable the F.I.G.A. Recoupment (Invoice, check)
- 7 Exhibits on Credits, Exhibit 7* “Cat Factor consistent with Ex Wind credits”
*- 1÷ (1-Ex Wind % Credit/
Load)= Cat Factor
Ex Wind Cat Factor= 1.00
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• Computer Disks
Homeowners (H.R.C.S.) Dwelling (D.R.C.S.)
Automobile (A.R.C.S.)
Mobile Home (M.R.C.S.)
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• Some Frequently asked Questions
- F.H.C.F. is tax exempt
- Credibility Formula,Consistency
- Complement of Credibility (95’ Joe Boor)
- Support of credits that are not I.S.O.
- Modeling, Black Box
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• Some Key D.O.I. Employees
Area Code 850
• Shirley Kerns - 413-5310
• Richard Koon - 413-5346
• Ken Ritzenthaler- 413-5314
• Vern Ivarson - 413-5366
• Tim Bazer - 413-5378
• Kay Cleary - 413-5254
• Jack Swisher - 413-5344
• Srinivasa Ramanujam-413-5354
• Bill Bodiford - 413-5352
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• Tim Rundle - 413-5318
• Howard Eaglefeld- 413-5319
• Doug Haseltine- 413-5330
• Jim Watford - 413-5368
• Jack Nicholson (F.H.C.F.)-
413-1340