Rate and Rule Review and Approval Process - Louisiana ...

Charles B. Hansberry, III, Esq., Director
Linda T. Gonzales, Assistant Director
Lawrence Steinert, Senior Actuary
Louisiana Department of Insurance
Office of Property and Casualty
Insurance Rating Division

• La. R.S. 36:688 and 22:1451 et seq.
• Commissioner has the exclusive authority to
accept, review and approve any application
for insurance rates, manual rules and
rate/rule changes
• Rates shall not be excessive, inadequate or
unfairly discriminatory
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• Louisiana Revised Statutes (Primarily
La. R.S. 22:1451 et seq.)
• LDI Rate and Rule Filing Handbook
(LDI website)
• LDI Product Filing Matrix (LDI website)
• LDI Office of Property and Casualty
(OPC)/Insurance Rating Staff
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Edward O’Brien – Deputy Commissioner
Charles Hansberry – Director
Linda Gonzales – Assistant Director
Jaclyn Blackwell – All Vehicle and Other Liability
(Umbrella/Excess)
Constance Cannon – Commercial Package Programs, Medical
Malpractice
Darlene Chachere – Commercial Property (Fire and Allied),
Fidelity, Surety, Burglary and Theft-Crime
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Herv Dorsey – Workers’ Compensation
Ursula Hall – Commercial Lines
Dayna Poche – Homeowners Personal Property, Title, Excess
Flood, Earthquake, Crop, Personal Liability
William Wolfe – Inland Marine
Technicians – NaKisha Butler, Edna “Missy” Shields
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• System for Electronic Rate and Rule Filing
(SERFF) – NAIC
• U.S. Mail (paper filings)
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• Louisiana is a modified prior approval state.
• Rates and rules must be on file with the LDI at
least forty-five (45) days prior to
implementation.
• A proposed rate and/or rule can be made
effective prior to the forty-five (45) day time
period if the LDI has completed its review/
approval process and the submitter makes a
request in writing for earlier effective date.
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• Filing is submitted via SERFF or U.S. Mail
• Contents of rate/rule filing are reviewed by technicians
and the assigned examiner for compliance with
Insurance Code, LDI Rules, Regulations and Bulletins.
• If contents are found to be compliant, rates and rules
are forwarded to staff actuaries for actuarial
justification, if required.
• Informational filings are administratively reviewed by
examiners and a disposition is drafted by the examiner
for review by the Division Director.
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• Upon completion of the actuarial review, the rate filing
is returned to the examiner with a recommendation for
approval/disapproval.
• The examiner drafts a disposition on behalf of the
Commissioner. The disposition, along with the final
contents of the rate filing, are reviewed by the Division
Director.
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• Once the Division Director has reviewed the rate/rule
filing for compliance and grammar, the filing is returned
to the examiner for issuance of the disposition.
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• If an examiner or a technician has questions relative to
the filing, the submitting entity has fifteen (15) days
from receipt of the question to respond. If a response
is not provided, the filing will be disapproved.
• In regards to a rate filing, the company must provide
the following:
• Overall [statewide] rate percentage increase or decrease
• Overall premium dollar impact
• Overall number of policyholders affected by the rate
change
• Requested effective date
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• Louisiana does not accept “Me Too” rate
filings. The rate filings must be based on the
experience of the submitting company.
However, a company can base its rates on
rates that have been previously approved by
the LDI for another company. With this filing,
the company must supply all of the required
exhibits and actuarial support relative to the
affected program.
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• Consent to Rate (CTR) filings must clearly
demonstrate that the rate offered to a
prospective/contracting insured is in excess
of the company’s filed and approved rate.
• Adoption of rates and rules of rating
organizations must be filed with the LDI. All
designation numbers must be provided in the
adoption filing.
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• Multiple rate filings within a policy term-
Advisory Letter
• Proprietary and confidential data should be
clearly denoted. Please note that an entire rate
filing cannot be deemed confidential.
• Verify lines of coverage on company’s Certificate
of Authority prior to filing the rates and rules for
a new program. A company’s Certificate of
Authority must be approved before the LDI can
act upon any rate/rule filings.
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• Membership in Property Insurance
Association of Louisiana (PIAL) for those
companies writing fire insurance in the state
of Louisiana (La. R.S. 22:1460).
• Incomplete filings will be disapproved.
• Rate and rule filings must be submitted
independent of form filings.
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• Larry Steinert
• Senior Actuary, Louisiana Department of
Insurance, Office of Property and Casualty
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• (225) 342-5203 (OPC)
• www.ldi.la.gov (Website)
Mailing Address: P.O. Box 94214
Baton Rouge, LA
70804-9214
*The Rate Division can be contacted online via
SERFF if a filing has been submitted via SERFF.
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