Section 754.30  Documentation –  Individual Risks

a)         A company is not required to file under Section 754.10 or Section 754.20 for individual risks in this State which cannot be rated in the normal course of business rating because of special or unusual characteristics and which must be rated on the basis of underwriting judgement.  This procedure does not apply to Worker's Compensation insurance.

b)         A company must maintain documentary information regarding rates determined in Section 754.30(a) for review by the Department's Property and Casualty Evaluation Section.

c)         A company is not required to file rates on individual risks in this State where the development of the rate for the individual risk is dependent upon an inspection of improvements on real property and an application of a schedule, the elements of which include loss ratio, hazard analysis, risk analysis and classification of municipal fire defenses.

d)         A company must, however, maintain documentary information for the rates in Section 754.30(c) by:

1)         Maintaining the information in files and records in its offices which will be available for review by the Department's Property and Casualty Evaluation Section; or

2)         Authorizing an advisory organization by use of an individual risk authorization letter to maintain documentary information for all rates in Section 754.30(c) in its files and records which will be available for review by the Department's Property and Casualty Evaluation Section; and

3)         Filing duplicate copies of an individual risk authorization letter which must include:

A)        the name of their authorized advisory organization;

B)        the kind of insurance for which the information will be maintained;

C)        authorization clause or language; and

D)        effective date of authorization.