OAR 836-042-0080
Rate Filing Requirements and Standards
(1)
Such rating plans must be based on actuarial assumptions and methods similar to and not circumventing the design of retrospective rating plans approved by the Director.(2)
A deductible credit or rating modification must be the final rating step so that the insurer may distinguish the amount of credit or modification premium and the policy premium prior to the credit or modification. An insurer may compute premium discounts based on premium amounts after deductible credits if the insurer can demonstrate that greater premium equity is achieved and that data distinguishing the various premium elements will be maintained.(3)
Such rating plans may not contain provisions which cannot be approved under the unfair discrimination provisions of OAR 836-042-0025 (Workers’ Compensation Filings Standards for Unfair Discrimination).(4)
A deductible credit or rating modification must recognize expenses which vary with net earned premium after such credits or modifications(5)
Prospective experience rating plans based on prior claims experience must use losses valued on a gross basis prior to deductible provisions.(6)
Large deductible rating plans may not be applied to rating groups approved under OAR 836-042-0201 (Statutory Authority; Purpose; Effective Date) to 836-042-0225 (Criteria for Grouping; Criteria for Substantially Similar Occupations Within Organization; Open Enrollment Required).(7)
Minimum eligibility for a large deductible provision must be not less than $500,000 estimated country-wide annual premium prior to large deductible credits or premium credits based on premium size. The minimum deductible limit per claim for each injury or illness may not be less than $75,000. An aggregate limit for deductible amounts for all claims may be specified but may not be less than the deductible limit per claim.
Source:
Rule 836-042-0080 — Rate Filing Requirements and Standards, https://secure.sos.state.or.us/oard/view.action?ruleNumber=836-042-0080.