Statutes, codes, and regulations
Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-123 - RATES AND FORMS FILING REQUIREMENTS FOR PROPERTY AND CASUALTY INSURANCE
Section 482-1-123-.03 - Definitions

Ala. Admin. Code r. 482-1-123-.03

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Current through Register Vol. 43, No. 1, October 31, 2024
Section 482-1-123-.03 - Definitions

The following definitions shall apply for purposes of this regulation:

(1) Commercial Lines. Commercial lines are all lines except personal lines.
(2) Forms. Those forms required to be filed for approval pursuant to Section 27-14-8, Code of Ala. 1975.
(3) File and Use System. A system whereby rates, rating manuals, supporting actuarial information and policy forms must be filed with the regulator on or before the date of use by the insurer. The regulator is generally expected to review individual filings for compliance, but it is contemplated that the regulator will use discretion in determining the nature and extent of this review based on competitive market conditions. Under this system, if a regulator requests that the insurer modify the filing, there is a presumption that the regulator will impose corrective action on a prospective basis. However, this presumption can be overcome when the regulator determines that corrective action needs to occur retrospectively after considering all of the following:
a. The nature and extent of the harm to consumers.
b. Whether there is a willful violation of law by the insurer.
c. The burden and cost of the retrospective corrective action on the insurer, especially in cases where the costs will be passed on to the consumer.
(4) Personal Lines. Personal lines are lines for personal, family or household purposes.
(5) Prior Approval System. A system whereby rates, rating manual, supporting information and policy forms must be submitted to the state insurance regulator and formally approved prior to their use, with certain statutory exceptions.
(6) Property and Casualty Insurance. As defined in Chapter 5, Title 27, Code of Ala. 1975.
(7) Rates. As defined in Chapter 13, Title 27, Code of Ala. 1975.

Author: Elizabeth Bookwalter, Associate Counsel

Ala. Admin. Code r. 482-1-123-.03

New Rule: June 20, 2001; effective July 1, 2001. Amended: September 12, 2001; effective October 1, 2001. Filed with LRS September 14, 2001. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-13-4, 27-13-30, 27-13-68, 27-14-8.