Rule 20:06:22:05 Requirements for history of experience.
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
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 following format:
(1) For all years of issue combined;
(2) For each calendar year of experience used in
the rate determination process;
(3) For the last five years;
(4) The date and magnitude of each previous rate
change, if any;
(5) The number of South Dakota policies affected
by the rate revision.
Source: 16 SDR
208, effective June 3, 1990; 39 SDR 219, effective June 26, 2013.
SDCL 58-17-87(5), 58-18B-18.
SDCL 58-11-76, 58-17-4.1, 58-17-4.2, 58-18B-3.1.
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