31.13.03.09

.09 General Premium Rate Standards and Increased Rates.

A. General.

(1) With respect to all premium rates not eligible for filing in accordance with the case method, the Commissioner shall accept as meeting the standards of Insurance Article, §13-110(b)(1), Annotated Code of Maryland, those premium rate filings that do not exceed prima facie premium rates stated in Regulation .10 of this chapter for the several categories of insurance described in Regulation .10 of this chapter.

(2) The prima facie premium rates in Regulation .10 of this chapter are based on the assumption that a policy fee, policy issue fee, certificate fee, or other additional charge will not be made.

B. Premium rates for use with forms that have less restrictive provisions than those described in this chapter may not exceed the prima facie rates specified in Regulation .10 of this chapter.

C. All prima facie premium rates and standards and formulas for increased rates refer to individual policies and group certificates insuring single lives.

D. Joint Credit Involuntary Unemployment Benefit Insurance. For credit involuntary unemployment benefit insurance issued to cover two debtors jointly, the premium for the involuntary unemployment insurance benefits may not exceed 1.80 times the premium that would be charged if one debtor alone were insured.

E. Application for Approval of Higher Rates.

(1) With respect to premium rates not eligible for filing in accordance with the case method, an insurer may file with the Commissioner an application for approval of rates higher than the prima facie premium rates for a single creditor or for one or more classes of business.

(2) The application shall specify the basis for the increased rate requested and shall be accompanied and supported by:

(a) Credible statistics applicable to the business under consideration; and

(b) A demonstration that the requested rates are in conformity with, or less than, rates that would meet the guidelines for increased rates set forth in Regulation .12 of this chapter.

F. Notice of Increased Rate.

(1) The Commissioner may grant approval of an increased rate for a stated period.

(2) If a period is not specified in the Commissioner's notice of approval, an approval by the Commissioner of an increased rate shall be effective for a period of 1 year.