KRS 304.13-051: Filing rates and rate information -- When filing becomes effective.

(1) In a competitive market, every insurer shall file with the commissioner rates and

supplementary information to be used in this state for commercial risks as

designated by the commissioner and for all personal risks. The rates and

supplementary rate informa tion shall be filed not later than fifteen (15) days after

the date of first use of the rates, unless the commissioner finds after a hearing that

an insurer's rates require closer supervision because of the insurer's financial

condition. On a finding, rate s for both personal and commercial risks,

supplementary rate information, and supporting information shall be filed with the

commissioner at least thirty (30) days before the effective date of the rates. An order

shall expire no later than one (1) year after it is issued.

(2) In a noncompetitive market, every insurer shall file with the commissioner all rates

for that market, supplementary rate information, and supporting information at least

thirty (30) days before the proposed effective date of the rates. On application of the

filer, the commissioner may authorize an earlier effective date.

(3) Any rate filing in effect at the time the commissioner determines that competition

does not exist pursuant to KRS 304.13 -041 shall be deemed to be effective until

disapproved pursuant to the procedures and rating standards of this chapter.

(4) Every insurer shall file with the commissioner all rating manuals and underwriting

rules that it uses in this state not later than fifteen (15) days after they become

effective. Manuals, rules, and guidelines must be adhered to until amended. The

commissioner may exempt an insurer from filing supporting information if it files

by reference, with or without deviation, to a filing which is in effect for another

insurer or an advisory organization.

(5) (a) No insurer shall place into effect any rates, manuals, or underwriting rules

which it proposes to use pursuant to subsection (1) or (4) of this section if the

rates, manuals or underwriting rules will result in an increase or decr ease of

more than twenty-five percent (25%) from the insurer's then existing rates for

any classification of risks in any of its rating territories within a twelve (12)

month period of time.

(b) Any insurer which proposes to change its then existing rates, manuals, or

underwriting rules so as to effectively increase or decrease the rates of any

classification of risks within any rating territory more than twenty-five percent

(25%) within a twelve (12) month period shall file all the rates and

supplemental r ating information which shall not become effective until

approved by the commissioner.

(6) Rates and supplemental rating information for a residual market mechanism shall

not become effective until approved by the commissioner.

(7) The commissioner shall r eview filings made in accordance with subsections (2),

(5)(b), and (6) of this section as soon as reasonably possible after they have been

made in order to determine whether they meet the applicable requirements of this

chapter. Each filing shall be on fil e for a waiting period of thirty (30) days before it

becomes effective, which period may be extended by the commissioner for an

additional period not to exceed thirty (30) days if he or she gives written notice

within the waiting period to the insurer which made the filing that additional time is

needed for consideration of the filing. The commissioner may, when he or she

deems it to be in the public interest, hold a public hearing on any filing before the

filing becomes effective to determine whether the f iling meets the requirements of

this subtitle. In the event that a hearing is held under the provisions of this

subsection, the waiting periods specified in this subsection shall not begin to run

until thirty (30) days after the close of the hearing. The b urden of establishing that

the filing under consideration meets the requirements of this subtitle is on the

insurer which makes the filing. A filing shall be deemed to meet the requirements of

this subtitle unless disapproved by the commissioner within the waiting period or

any extension thereof.

(8) At any hearing concerning an increase in worker's compensation rates conducted

pursuant to subsection (7), the commissioner may approve a rate other than one that

has been proposed by the filer if it is justifi ed by the evidence presented at the

hearing.