Pursuant to Insurance Article, §§11-206, 11-307, 11-329, and 11-330, Annotated Code of Maryland, rate filings made by individual insurers may incorporate the experience of rating organizations. The experience includes statistical data, prospective loss costs, and supporting information, as defined in this chapter. The purpose of this chapter is to establish what additional information shall be provided to the Commissioner by insurers which incorporate, in whole or in part, filings made by rating organizations. This chapter applies to rate filings made pursuant to Insurance Article, Title 11, Subtitle 2 and Subtitle 3, Annotated Code of Maryland. In this chapter, the following terms have the meanings indicated. Terms Defined. “Expenses” means that portion of a rate attributable to acquisition, field supervision, collection and general expenses, taxes, licenses, and fees. “Prospective loss cost” means that portion of a rate exclusive of profit or expenses, other than loss adjustment expenses, which is based on historical aggregate losses and loss adjustment expenses adjusted through development to their ultimate value and projected through trending to a future point in time. “Rate” has the meaning stated in Insurance Article, §11-101, Annotated Code of Maryland. “Rating organization” has the meaning stated in Insurance Article, §11-101, Annotated Code of Maryland. “Supplementary rate information” has the meaning stated in Insurance Article, §11-101, Annotated Code of Maryland. “Supporting information” means: The experience and judgment of the insurer; The experience or data of other insurers or rating organizations relied upon by the insurer; The interpretation of any statistical data relied upon by the insurer; Descriptions of methods used in making the rates; and Other similar information required to be filed by the Commissioner. Rating organizations may develop and make reference filings containing advisory prospective loss costs. These filings shall contain the statistical data and supporting information, calculations, and assumptions underlying those prospective loss costs. Reference filings shall be filed and become effective in accordance with the provisions of Insurance Article, §§11-206, 11-307, 11-329, and 11-330, Annotated Code of Maryland. An insurer may satisfy its obligation to make rate filings by: Becoming a member of, or a subscriber to, a licensed rating organization which makes reference filings of advisory prospective loss costs; Filing with the Commissioner the information required in Regulation .05 of this chapter; and Authorizing the Commissioner by the filing of a reference filing adoption form, to accept the reference filings on its behalf. The insurer's rates shall be the currently effective prospective loss costs filed by the rating organization, combined with the loss cost adjustments which are filed in accordance with Regulation .05 of this chapter and are in effect for the insurer. An insurer filing which refers to or incorporates a rating organization's reference filing of prospective loss costs shall include the following: Reference filing adoption form as set forth in Regulation .08 of this chapter, or the NAIC Loss Cost Filing Documents titled “Other than Workers' Compensation”, “For Workers' Compensation”, and “NAIC Expense Constant Supplement”; Summary of supporting information as set forth in Regulation .08 of this chapter; and Expense constant supplement as set forth in Regulation .08 of this chapter if expense constants are utilized. To the extent that an insurer's final rates are determined solely by applying its loss cost adjustments, as presented in the reference filing adoption form, to the prospective loss costs contained in a rating organization's reference filing and printed in the rating organization's rating manual, the insurer need not develop or file its final rate pages with the Commissioner. If an insurer chooses to print and distribute final rate pages for its own use, based solely upon the application of its filed loss cost adjustments to a rating organization's prospective loss costs, the insurer need not file those pages with the Commissioner. If the rating organization does not print the loss costs in its rating manual, the insurer must submit its rates to the Commissioner. With the initial prospective loss cost reference filing, rating organizations will no longer develop or file minimum premiums. If an insurer wishes to use minimum premiums it shall file the minimum premiums it will use. Rating organizations may develop and make filings of supplementary rate information in accordance with Insurance Article, §§11-206 and 11-307, Annotated Code of Maryland. An insurer may satisfy its obligation to make filings of supplementary rate information by becoming a member of, or a subscriber to, a licensed rating organization and by authorizing the Commissioner to accept the filings on its behalf. The insurer's supplementary rate information shall be that filed by the rating organization, subject to any modifications filed by the insurer. Nothing in these regulations shall be construed to require any rating organization or member or subscriber insurer to refile any rates in effect. Any member or subscriber to a licensed rating organization is authorized to continue to use all rates and deviations in effect until such time as these rates are disapproved, replaced, or modified or the insurer submits an independent filing to change its rates or files a reference filing form adopting the rating organization's prospective loss costs, or modification of them. Reference Filing Adoption Form. Line, Subline, Coverage, Territory, Class, etc. Loss Cost Modification: The insurer hereby files to adopt the prospective LOSS COST MODIFICATION Expressed as a Factor: _______ Development of Expected Loss Ratio. (Attach exhibit detailing insurer expense data and/or other supporting information.) Development of Expected Loss Ratio. (Attach exhibit Insurance Article, §§2-109, 11-206, and 11-218, Annotated Code of Maryland Effective date: July 12, 1927 Amended effective May 1, 1968 Chapter, Industrial Life, Health, and Accident Insurance Agents—Employment on Debit on Which He Previously Worked, repealed effective February 22, 1988 (15:4 Md. R. 472) Regulations .01—.08, Property, Casualty, Surety, and Marine Rating, and Supplementary Information Filings, adopted as an emergency provision effective July 1, 1990 (17:15 Md. R. 1845); emergency status expired October 31, 1990; adopted permanently effective November 12, 1990 (17:22 Md. R. 2655) Regulation .08 amended effective March 25, 1996 (23:6 Md. R. 475) Chapter recodified from COMAR 09.30.21 to COMAR 31.07.01 effective September 7, 1998 (25:18 Md. R. 1439) Regulation .01 amended effective November 17, 2008 (35:23 Md. R. 2017) Regulation .02 amended effective November 17, 2008 (35:23 Md. R. 2017) Regulation .03B amended effective November 17, 2008 (35:23 Md. R. 2017) Regulation .04A amended effective November 17, 2008 (35:23 Md. R. 2017) Regulation .05A amended effective November 17, 2008 (35:23 Md. R. 2017) Regulation .06 amended effective November 17, 2008 (35:23 Md. R. 2017) Effective date: January 28, 1985 (12:2 Md. R. 139) Regulations .01—.03 amended as an emergency provision effective July 1, 1989 (16:13 Md. R. 1413); emergency status expired August 31, 1989; amended permanently effective October 30, 1989 (16:21 Md. R. 2261) Regulation .03 amended and Appendices A—C repealed effective December 30, 1996 (23:26 Md. R. 1859) Regulation .04 adopted effective December 30, 1996 (23:26 Md. R. 1859) Regulation .05 adopted effective December 30, 1996 (23:26 Md. R. 1859) Chapter recodified from COMAR 09.30.64 to COMAR 31.07.02 effective September 7, 1998 (25:18 Md. R. 1439) Chapter revised effective November 13, 2000 (27:22 Md. R. 2061) Chapter repealed effective April 12, 2004 (31:7 Md. R. 587) The purpose of this chapter is to ensure that all insurers that use territory as a factor in establishing automobile insurance rates in the State, including the Maryland Automobile Insurance Fund, file statements with the Commissioner that satisfy the requirements of Insurance Article, §§11-216 and 11-319, Annotated Code of Maryland. Each insurer that uses territory as a factor in establishing automobile insurance rates in the State, including the Maryland Automobile Insurance Fund, shall conduct a review of its territories every 3 years. Each insurer that uses territory as a factor in establishing automobile insurance rates in the State, including the Maryland Automobile Insurance Fund, shall file with the Commissioner a certification statement. The certification statement shall be on the form adopted by the Commissioner in Regulation .04 of this chapter. The certification statement shall be filed: On or before June 1, 2007; Upon completion of each review required by the Commissioner pursuant to Regulation .02 of this chapter; and Contemporaneously with each rate filing that indicates a modification of territorial rating factors. Certification Statement for Insurers and Rating Organizations. The use of territories as a factor in rating by the above-named (insurer or rating organization) has been reviewed within the previous 3 years; and Use of the territories on file, or as set forth in this filing, are actuarially justified. I understand that the Maryland Insurance Administration will rely on this certification, and if it is determined that this certification is materially false or incorrect, the insurer may be subject to administrative action, including appropriate penalties. Certification Statement for Insurers Adopting the Certification Statement of a Rating Organization. _____________(insurer) is a member of or subscriber to _________________ (rating organization), a licensed rating organization, and has authorized the Commissioner to accept filings from ______________ (rating organization) on its behalf or has filed to adopt _______________ (rating organization's) filings. ________________(insurer) has filed no deviations relating to territory from the automobile rate filings submitted by ____________(rating organization). _____________ (rating organization) has filed with the Commissioner the certification statement required by Insurance Article, §11-216 or 11-319, Annotated Code of Maryland, and COMAR 31.07.03.03. ____________________(insurer) hereby adopts the statements made in the certification statement. A licensed rating organization that files on behalf of its members or subscribers automobile insurance rates that use territory as a factor in establishing automobile insurance rates in the State shall comply with the provisions of Regulations .02—.04 of this chapter. An insurer that is required to file a certification statement may utilize the certification statement in Regulation .04B of this chapter if: The insurer is a member or subscriber of a licensed rating organization which has been authorized to make filings on the insurer's behalf or the insurer has filed to adopt the rating organization's filing; and The insurer has not filed with the Commissioner a deviation from the rates, loss costs, or both, filed by the rating organization relating to the use of territories. Insurance Article, §§2-109, 11-216, 11-319, and 11-339, Annotated Code of Maryland Effective date: January 15, 2007 (34:1 Md. R. 33)