Rate Filing Under The Flex Rating System

Rosenberg, Deborah M.

Non-Refereed Paper/Article
Casualty Actuarial Society Forum Casualty Actuarial Society - Arlington, Virginia
1988: Fall
125-130
http://www.casact.org/pubs/forum/88fforum/88ff125.pdf

Abstract

The topic that I am going to speak about deals with making a rate filing under the flexible rating system. Flex-rating is a concept that was introduced with the enactment in New York of the Omnibus Insurance Legislation of 1986. Prior to this, there were two filing methods in New York - prior approval for private passenger automobile, workers’ compensation and most types of medical malpractice, and open competition, i.e., file and use, for the remaining lines. As a result of the liability crisis, and a reluctance to impose prior approval for lines not previously so subject, the compromise position of flex-rating was created. Under this system, rates for certain commercial liability markets may be changed without prior approval, as long as the resulting rate falls within a specified range, called a flex-band, applicable to that insurance market.

Taxonomy Classifications

• Business Areas > Professional Liability > Medical Malpractice - Claims-Made
• Business Areas > Professional Liability > Medical Malpractice -Occurence
• Business Areas > Automobile > Personal
• Actuarial Applications and Methodologies > Regulation and Law > Rate Regulation
• Actuarial Applications and Methodologies > Ratemaking
• Business Areas > Workers Compensation

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