Rule 20:06:22:05 Requirements for history of experience.
20:06:22:05. Requirements for history of experience. The
history of experience required by § 20:06:22:04 shall include earned
premium and incurred benefit information for each calendar year for each policy
form, including data for rider and endorsement forms which are used with the
policy form, on the same basis, including reserves. Subject to the approval of
the director, an insurer may combine the premium and incurred benefit
information on similar coverages. Separate data may
be maintained for each rider or endorsement form to the extent appropriate.
Subject to approval of the director,
experience under forms which provide substantially similar coverage and
provisions and which are issued to substantially similar risk classes may be
combined for purposes of evaluating experience data in relation to premium
rates and rate revisions, particularly if statistical credibility would be
materially improved by the combination. Once the insurer has combined forms,
the insurer may not thereafter separate the experience, except with the
approval of the director.
The history may also include, if
available and appropriate, the ratios of actual claims to the claims expected
according to the assumptions underlying the existing rates.
The data shall be presented using the
(1) For all years of issue
(2) For each calendar year
of experience used in the rate determination process;
(3) For the last five
(4) The date and magnitude
of each previous rate change, if any;
(5) The number of South
Dakota policies affected by the rate revision.
16 SDR 208, effective June 3, 1990.
Authority: SDCL 58-4-1.
Implemented: SDCL 58-17-4.1, 58-17-4.2.
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