N.M. Admin. Code § 13.8.5.7

Current through Register Vol. 35, No. 21, November 5, 2024

Section 13.8.5.7 - DEFINITIONS

A."Consent to rate" means a deviation from the manual rate agreed to by both the insured and insurer.

B."Experience rating plan" means any rating plan or system whereby a manual rate for insurance is adjusted or modified based on the past loss experience of the insured.

C."Manual rate" means a rate, whether expressed as a single number or as a prospective loss cost with an adjustment to account for the treatment of expenses, profit and variations based on loss or expense considerations, designed to apply on a generic basis to similar risks within the same market, filed by an insurer or rate service organization with the department, approved by the superintendent, and made part of the rating manual used by an insurer or rate service organization.

D."Rate modification plan" means a rating plan or procedure, exclusive of experience rating, which provides a listing of various risk characteristics or conditions and a range of modification factors which may be applied for those characteristics or conditions to the manual rate of a particular insurance risk. The effect of the modification factor is to increase (debit) or decrease (credit) the manual rate. Rate modification plans include, but are not limited to, plans commonly referred to as schedule rating plans and individual risk premium modification plans.

N.M. Admin. Code § 13.8.5.7

2/1/95; Recompiled 11/30/01