N.Y. Comp. Codes R. & Regs. tit. 11 § 160.3

Current through Register Vol. 46, No. 50, December 11, 2024

Section 160.3 - Premium adjustments; when required

(a) The decision as to whether an order rendered after a hearing as provided in section 2320 of the Insurance Law will include provision for retroactive premium adjustment is a matter to be determined within the sound discretion of the superintendent, exercised in consideration of all the facts and circumstances of the particular case with the primary objective of effecting an equitable adjustment between the insurer and its policyholders. Premium adjustment is not a penalty and the fact that premium adjustment is ordered does not necessarily imply that the insurer has violated the law.

(b) Where a rate has been constructed and applied in the good faith exercise of reasonable judgment and competence and in fair consideration of the relevant factors and interests and in accordance with the procedures prescribed in the law and these regulations, retroactive premium adjustment will not be ordered merely because the rate is determined to be excessive by reason of actual loss or expense experience more favorable than anticipated nor merely because the rate is determined to be inadequate by reason of actual loss or expense experience less favorable than anticipated.

(c) If an insurer has established and pursues an adequate procedure to minimize the occurrence of improperly charged rates as described in section 160.2(g) of this Part, the superintendent will limit himself to a request for appropriate premium adjustment in cases of improperly charged rates which may be discovered. If the insurer has not established and pursued such procedures, improperly charged rates may be treated as violations of the law within the meaning of section 2320 of the Insurance Law.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 160.3