Ins 6.03(3)(b)7.
7. The applicant's annual statements for the three most recent years and a projection of the anticipated operating results of the corporation at the end of the next five years of operation, based on reasonable assumptions of loss experience, premium and other income, operating expenses and acquisition costs; and
Ins 6.03(3)(b)8.
8. To the extent requested by the commissioner, the applicant's method of establishing premium rates.
Ins 6.03(3)(c)
(c) A certificate from the authority which regulates the insurance industry in the applicant's state of domicile, stating that the authority has given all requisite approvals and that the applicant's corporation is in good standing with the authority and in compliance with the laws of the state of domicile; and
Ins 6.03(3)(d)
(d) Any other relevant information required by the commissioner from an applicant.
Ins 6.03(4)(a)
(a) An insurer may obtain materials for application for a certificate of incorporation and certificate of authority by requesting them from the commissioner of insurance, P.O. Box 7873, Madison, Wisconsin 53707-7873.
Ins 6.03(4)(b)
(b) In accordance with s.
601.31 (1) (a), Stats., an insurer shall submit a $100 fee to the commissioner at the same time that the insurer submits the application for the certificates of incorporation and authority.
Ins 6.03(5)(a)
(a) The commissioner shall issue within 180 days of receiving a completed application submitted in accordance with s.
611.223 (1) (a), Stats., a certificate of incorporation and a certificate of authority to the insurer submitting the application if the commissioner determines that the insurer satisfies the requirements of s.
611.223 (1) (a) 1. to
3., Stats. A failure by the commissioner to issue the certificate of incorporation and a certificate of authority within 180 days does not constitute acceptance of the application.
Ins 6.03(5)(b)
(b) In accordance with s.
601.31 (1) (b), Stats., an insurer shall submit a $100 fee to the commissioner upon issuance of the certificate of incorporation and certificate of authority.
Ins 6.03 History
History: Cr.
Register, May, 1989, No. 401, eff. 6-1-89; correction in (3) (a) 5. made under s. 13.93 (2m) (b) 7., Stats.,
Register, February, 2000, No. 530.
Ins 6.05
Ins 6.05
Filing of insurance forms. Ins 6.05(3)(a)
(a) “Affiliated insurer" means an insurer which is a member or subscriber to a rate service organization licensed under s.
625.32, Stats., and which has authorized the rate service organization to file forms on its behalf.
Ins 6.05(3)(b)
(b) “Certificate of compliance and readability" means a document in substantially identical format to Appendix A which is signed by an officer of the insurer.
Ins 6.05(3)(c)
(c) “Certificate of readability" means a written statement signed by an officer of the insurer stating that the form is subject to s.
Ins 6.07 and that the form meets the minimum standards set forth in that section.
Ins 6.05(3)(d)
(d) “OCI" means the office of the commissioner of insurance.
Ins 6.05(3)(e)
(e) “Submission" means a filing under s.
631.20, Stats., or any request received by the office of the commissioner of insurance for approval of a single form or combination of forms.
Ins 6.05(3)(f)
(f) “Transmittal document" means a document substantially identical in format to the form established by standards adopted by the National Association of Insurance Commissioners (NAIC), on which an insurer shall list information about each form submitted for approval.
Ins 6.05 Note
Note: A copy of the transmittal document may be obtained at no cost from the Office of the Commissioner of Insurance, P.O. Box 7873, Madison WI 53707-7873, or at the Office's web address: oci.wi.gov.
Ins 6.05(4)(a)
(a) Each paper submission of forms shall include all of the following:
Ins 6.05(4)(a)1.
1. A properly completed insurance transmittal document in duplicate.
Ins 6.05(4)(a)2.
2. A properly completed certificate of compliance and readability in substantially identical format as in Appendix A.
Ins 6.05(4)(a)3.a.
a. In the case of a form that alters or replaces a previously approved form, a description of the change.
Ins 6.05(4)(a)3.b.
b. One copy of each form in final format exactly as it will be offered for issuance or delivery in the state of Wisconsin, except for hypothetical data and other appropriate variable material.
Ins 6.05(4)(a)5.
5. If a form contains variable material or language, a written description identifying the range of the variable material or language.
Ins 6.05(4)(a)6.
6. A second copy of each form, if the insurer requires an OCI stamped copy for its records.
Ins 6.05(4)(a)7.
7. A copy of the previously approved form clearly marked “for reference only" if the current form is to supercede the previously approved form.
Ins 6.05(4)(a)8.
8. If the submission of forms is filed by a third-party on behalf of an insurer, a letter from the insurer, authorizing the third-party to file forms on its behalf.
Ins 6.05(4)(a)9.
9. A self-addressed return envelope of sufficient size to return one copy of the materials in subds.
1. and
6., to the insurer.
Ins 6.05(4)(b)
(b) Each electronic submission of forms shall include all of the following:
Ins 6.05(4)(b)2.
2. A properly completed certificate of compliance and readability in substantially identical format as in Appendix A.
Ins 6.05(4)(b)3.
3. A filing letter that contains all of the following information:
Ins 6.05(4)(b)3.a.
a. In the case of a form that alters or replaces a previously filed form, a description of the changes.
Ins 6.05(4)(b)3.b.
b. The form number and approval or filing date of any form superseded by the new form.
Ins 6.05(4)(b)4.
4. One copy of each form in final electronic format exactly as it will be offered for issuance or delivery in the state of Wisconsin, except for hypothetical data and other appropriate variable material.
Ins 6.05(4)(b)5.
5. If a form contains variable material or language, a written description identifying the range of the variable material or language.
Ins 6.05(4)(b)6.
6. A copy of the previously approved or filed form clearly marked “for reference only" if the current form is to supersede the previously approved or filed form.
Ins 6.05(4)(b)7.
7. If the submission of forms is filed by a third-party on behalf of an insurer, a letter from the insurer authorizing the third-party to file forms on its behalf.
Ins 6.05(4)(c)
(c) A submission filed by a rate service organization will be considered as filed on behalf of all affiliated insurers.
Ins 6.05(5)
(5) Insurer records. Each insurer shall maintain a file of all forms approved or filed under s.
631.20, Stats., for use in Wisconsin until all exposure on the risks insured against has terminated. The file is subject to examination and the commissioner may request that any portion of the file be available for review within ten days of a written request.
Ins 6.05(6)
(6) Incomplete filing. The commissioner shall reject without further review any filing which does not include all of the items in sub.
(4) (a) and
(b).
Ins 6.05(7)
(7) Penalty. Insurers violating the provision of this rule by using unapproved or unfiled forms shall be subject to the penalties in s.
601.64, Stats. Each form issued to an individual policyholder shall constitute a separate violation.
Ins 6.05 History
History: Cr.
Register, July, 1958, No. 31, eff. 8-1-58; am. (3),
Register, May, 1975, No. 233, eff. 6-1-75; emerg. am. (1), eff. 6-22-76; am. (1),
Register, September, 1976, No. 249, eff. 10-1-76; r. and recr.
Register, November, 1977, No. 263, eff. 12-1-77; r. and recr. (4),
Register, January, 1980, No. 289, eff. 2-1-80; am. (4) (a), (b) (intro.) and 7.,
Register, February, 1982, No. 314, eff. 3-1-82; cr. (4) (c) and (d),
Register, July, 1982, No. 319, eff. 8-1-82; r. and recr. December, 1987, No. 384, eff. 1-1-88; r. (5), renum. (6) to (8) to be (5) to (7),
Register, July, 1989, No. 403, eff. 8-1-89;
CR 10-076: am. (3) (b), (4) (a) (intro.), 1. to 5., 8., 9., (5), (6), (7), renum. (3) (d), (e), (f) to be (3) (f), (d), (e) and am., renum. (4) (b) to be (4) (c), cr. (4) (b)
Register January 2011 No. 661, eff. 2-1-11.
Ins 6.05 Appendix A
CERTIFICATE OF COMPLIANCE AND READABILITY
I __________________________, (name), an officer of____________________(company name), hereby certify that I have authority to bind and obligate the company by filing this (these) form(s). I further certify that, to the best of my information, knowledge and belief:
1. The accompanying form(s) as identified by the attached listing comply(ies) with all applicable provisions of the Wisconsin Statutes and with all applicable administrative rules of the Commissioner of Insurance;
2. The form(s) does (do) not contain any inconsistent, ambiguous, or misleading clauses;
3. The form(s) does (do) not contain specification or conditions that unreasonably or deceptively limit the risk purported to be assumed in the general coverage of the policy form(s);
4. The only variations from a form currently on file with the commissioner of insurance and the only unconventional policy provisions are clearly marked or otherwise indicated pages __________________ of the attached form(s) or in an attachment; and
5. The attached form(s) is (are) in final printed format or typed facsimile and is (are) as will be offered for issuance or delivery in Wisconsin after approval by the Commissioner of Insurance, except for hypothetical data and other appropriate variable material.
6. If this form is a consumer insurance policy, the text of the form(s) meet(s) the minimum reading ease score or, if authorized by the commissioner, the score is lower than the minimum required by s.
Ins 6.07 (4) (a) 1., Wis. Adm. Code. Product used to determine the Flesch score:____________________.
I understand that the commissioner of insurance will rely on this certification regarding the forms filed, and should it be determined that the policy form(s) does(do) not comply with the applicable laws, regulations, filing requirements and product standards or that this certification is materially false or incorrect, appropriate corrective and disciplinary action, including retroactive disapproval, as authorized by law, may be taken by the commissioner against the company and the officer completing this certification.
(signature)
(title)
(date)
Individual responsible for this filing:
Name: Title:_________________________
Address: ________________
Phone Number:_______________ Date:
Ins 6.06
Ins 6.06
Minimum documentation in support of rate filings. Ins 6.06(1)(1)
Purpose. The purpose of this section is to establish the minimum supplementary rate information required to be submitted with rate filings to the commissioner. Statutes interpreted or implemented by this section are ss.
601.42 (1g),
625.01,
625.02 (3), and
625.11, Stats.
Ins 6.06(2)
(2) Scope. Except as provided in sub.
(4), any insurer or rate service organization which is subject to s.
625.13 (1), Stats., and is filing rates for any kind or line of direct insurance in this state shall include, in that filing, the supplementary rate information required by sub.
(5) or
(6).
Ins 6.06(3)(a)
(a) A “frequency trend factor" means any factor which adjusts the past number of paid or incurred claims to reflect more accurately the number of claims that can be expected to develop during the period the proposed rates will be used.
Ins 6.06(3)(b)
(b) A “loss adjustment factor" means any factor used to modify or adjust the actual losses paid or incurred during the period under examination or review.
Ins 6.06(3)(c)
(c) A “loss development factor" means any factor used either to adjust the reported amount of incurred losses to include incurred but not reported losses or to correct errors in the estimation of loss reserves for reported claims that have not been paid, or both.
Ins 6.06(3)(d)
(d) A “premium adjustment factor" means any factor used to modify or adjust the actual premiums earned during the period under examination or review.
Ins 6.06(3)(e)
(e) A “rate level factor" means any factor that adjusts prior earned premiums to the premiums that would have been earned if the present rates had been in effect throughout the period under examination or review.
Ins 6.06(3)(f)
(f) A “severity trend factor" means any factor which adjusts the past average claim amount to reflect more accurately the average claim amount that can be expected to develop during the period the proposed rates will be used.
Ins 6.06(4)(b)
(b) All companies licensed under ch.
612, Stats., are exempt from the provisions of this section.
Ins 6.06(4)(c)
(c) The commissioner may, upon written application, exempt an insurer from full or partial compliance with this rule.
Ins 6.06(5)
(5) Supplemental rate information. A rate filing and accompanying supplemental rate information shall be appropriately organized for the kind, class or line of business for which the filing is being made. Except as provided in sub.
(6), all rate filings shall include the following supplementary rate information:
Ins 6.06(5)(a)1.1. At least 3 separate and consecutive years of both Wisconsin and aggregate of all states' experience showing:
Ins 6.06(5)(a)2.
2. If any of the information required by subd.
1. is omitted or less than 3 years' experience is provided, an explanation shall be submitted.
Ins 6.06(5)(b)
(b) An explanation of the rate-making procedures including a description of any statistical data and actuarial methods utilized; or a statement of facts and other detailed information which explain judgments used; or a statement as to how the rates of the filing company compare with those of the competition, providing detail where the rates are substantially higher or lower; or any combination.
Ins 6.06(5)(c)
(c) Explanation of the permissible or target loss ratio, including an explanation of how any investment income has been taken into account.
Ins 6.06(5)(d)
(d) When used, any premium adjustment factors and loss adjustment factors by year and an explanation of methods and judgments underlying each factor. Loss adjustment factors include but are not limited to loss development factors, frequency trend factors, and severity trend factors. Premium adjustment factors include but are not limited to rate level factors.
Ins 6.06(6)
(6) Other supplemental rate information. The commissioner may accept supplemental information other than that required by sub.
(5) if the insurer or rate service organization can demonstrate to the commissioner that this information fully supports the rate filing and complies with s.
625.11, Stats.
Ins 6.06(7)
(7) Use of rate service organization rates. A member of or subscriber to a rate service organization licensed under s.
625.32, Stats., shall file supplementary rate information if its rates deviate from those filed on its behalf by the rate service organization. Such a filing shall be as required by subs.
(5) and
(6).
Ins 6.06(8)
(8) Additional information. The commissioner may require additional rate filing information if the commissioner determines that the original filing does not explain the proposed rate. Such additional information shall be provided within 30 days of the request.
Ins 6.06 History
History: Cr.
Register, March, 1988, No. 387, eff. 4-1-88; am. (5) (a) 1. intro. and (9),
Register, November, 1988, No. 395, eff. 12-1-88; r. (9) and Appendix,
Register, January, 1995, No. 469, eff. 2-1-95; correction in (1) made under s. 13.93 (2m) (b) 7., Stats.,
Register, February, 2000, No. 530.
