Section R20-6-604.03. Determination of Prima Facie Rates

A.      The Director shall, by order, establish prima facie rates as pre- scribed in this Section.

B.       At least once every three years, the Director shall:

1.        Determine the rate of expected claims on a statewide basis;

2.        Compare the rate of expected claims with the rate of actual claims for the past three years determined from the incurred claims and earned premiums at prima facie rates; and

3.        If the Director determines that the prima facie rates require adjustment, issue a notice of hearing and pro- posed order adjusting the actual statewide prima facie rates. The hearing date on the proposed order shall be no earlier than 45 days from the date of the notice.

C.      The Director shall mail a copy of the notice and proposed order to:

1.        Each insurer that reported transaction of credit insurance on its annual statement immediately preceding the date of the notice, and

2.        Any other person who sends the Director a written request for notice of proceedings to adjust the prima facie rates.

D.      Any person may submit written comments to the Director or appear at the hearing and provide oral comments on the record. Written comments shall be received no later than the close of record date specified in the notice of hearing.

E.       The Director shall:

1.        Consider written and oral comments; and

2.        Issue a final order setting prima facie rates no later than 30 days after the close of record date specified in the notice of hearing.

Historical Note

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).