{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-982","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-982","heading":"Definitions","body":"Definitions.\n\nAs used in the Property and Casualty Competitive Loss Cost\n\nRating Act:\n\n1. \"Accepted actuarial standards\" means the standards adopted\n\nby the Casualty Actuarial Society Statement of Principles regarding\n\nproperty and casualty ratemaking or the Standards of Practice\n\nadopted by the Actuarial Standards Board;\n\n2. \"Advisory organization\" means any corporation,\n\nunincorporated association, partnership or person, whether located\n\ninside or outside this state, that is licensed in accordance with\n\nSection 1140 of this title and which assists insurers in ratemaking-\n\nrelated activities such as enumerated in Section 1142 of this title;\n\n3. \"Classification system\" or \"classification\" means the\n\nprocess of grouping risks with similar risk characteristics so that\n\ndifferences in costs may be recognized;\n\n4. \"Commercial risk\" means any kind of risk that is not a\n\npersonal risk;\n\n5. \"Commissioner\" means the Commissioner of Insurance of this\n\nstate;\n\n6. \"Competitive market\" means a market which has not been found\n\nto be noncompetitive pursuant to Section 984 of this title;\n\n7. \"Developed losses\" means losses, including loss adjustment\n\nexpenses, adjusted using accepted actuarial standards, to eliminate\n\nthe effect of differences between current payment or reserve\n\nestimates and those which are anticipated to provide actual ultimate\n\nloss, including loss adjustment expense payments;\n\n8. \"Expenses\" means that portion of a rate attributable to\n\nacquisition, field supervision, collection expenses, general\n\nexpenses, taxes, licenses and fees;\n\n9. \"Experience rating\" means a rating procedure utilizing past\n\ninsurance experience of the individual policyholder to forecast\n\nfuture losses by measuring the policyholder’s loss experience\n\nagainst the loss experience of policyholders in the same\n\nclassification to produce a prospective premium credit, debit or\n\nunity modification;\n\n10. \"Joint underwriting\" means a voluntary arrangement\n\nestablished to provide insurance coverage for a risk pursuant to\n\nwhich two or more insurers jointly contract with the insured at a\n\nprice and under policy terms agreed upon between the insurers;\n\n11. \"Loss adjustment expense\" means the expenses incurred by\n\nthe insurer in the course of settling claims;\n\n12. \"Market\" means the statewide interaction between buyers and\n\nsellers of identical or readily substitutable products that provide\n\ninsurance protection of identifiable perils to buyers;\n\n13. \"Mass marketed plan\" means a method of selling property-\n\nliability insurance wherein the insurance is offered to employees of\n\nparticular employers or to members of particular associations or\n\norganizations or to persons grouped in other ways, and the employer\n\nor association or other organization has agreed to, or otherwise\n\naffiliated itself with, the sale of such insurance to its employees\n\nor members;\n\n14. \"Noncompetitive market\" means a market for which there is a\n\nruling in effect pursuant to Section 984 of this title that a\n\nreasonable degree of competition does not exist;\n\n15. \"Personal risk\" means homeowners, tenants, private\n\npassenger nonfleet automobiles, manufactured homes and other\n\nproperty and casualty insurance for personal, family or household\n\nneeds, including any property and casualty insurance that is\n\notherwise intended for noncommercial coverage;\n\n16. \"Pool\" means a voluntary arrangement, established on an\n\nongoing basis, pursuant to which two or more insurers participate in\n\nthe sharing of risks on a predetermined basis. The pool may operate\n\nthrough an association, syndicate or other pooling agreement;\n\n17. \"Prospective loss costs\" means historical aggregate losses\n\nand may include loss adjustment expenses, including all assessments\n\nthat are loss based, projected through development to their ultimate\n\nvalue and through trending to a future point in time;\nd basis. The pool may operate\n\nthrough an association, syndicate or other pooling agreement;\n\n17. \"Prospective loss costs\" means historical aggregate losses\n\nand may include loss adjustment expenses, including all assessments\n\nthat are loss based, projected through development to their ultimate\n\nvalue and through trending to a future point in time;\n\n18. \"Pure premium rate\" means that portion of the rate which\n\nrepresents the loss costs per unit of exposure including loss\n\nadjustment expense;\n\n19. \"Rate\" or \"rates\" means that cost of insurance per exposure\n\nunit whether expressed as a single number or as a prospective loss\n\ncost with an adjustment to account for the treatment of expenses,\n\nprofit, and individual insurer variation in loss experience, prior\n\nto any application of individual risk variations based on loss or\n\nexpense considerations, and does not include minimum premium;\n\n20. \"Residual market mechanism\" means an arrangement, either\n\nvoluntary or mandated by law, involving participation by insurers in\n\nthe equitable apportionment among them of insurance which may be\n\nafforded applicants who are unable to obtain insurance through\n\nordinary methods;\n\n21. \"Special assessments\" means guaranty fund assessments,\n\nSpecial Indemnity Fund assessments, Vocational Rehabilitation Fund\n\nassessments, and other similar assessments. Special assessments\n\nshall not be considered as either expenses or losses;\n\n22. \"Statistical plan\" means the plan, system or arrangement\n\nused in collecting data;\n\n23. \"Supplementary rating information\" means any manual or plan\n\nof rates, classification, rating schedule, minimum premium, policy\n\nfee rating rule and any other information needed to determine the\n\napplicable premium in effect or to be in effect. This includes,\n\nrating plans, territory codes and descriptions and rules which\n\ninclude factors or relativities such as increased limits factors,\n\ndeductible discounts or relativities, classification relativities or\n\nsimilar factors used to determine the rate in effect or to be in\n\neffect;\n\n24. \"Supporting information\" means the experience and judgment\n\nof the filer and the experience or data of other insurers or\n\nadvisory organizations relied upon by the filer, the interpretation\n\nof any other data relied upon by the filer, descriptions of methods\n\nused in making the rates and any other information required by the\n\nCommissioner to be filed; and\n\n25. \"Trending\" means any procedure for projecting losses to the\n\naverage date of loss, or premiums or exposures to the average date\n\nof writing, for the period during which the policies are to be\n\neffective.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"08de49019a9dfd8accd11cef6f4f397e0565e3447256245cc06b0414e3f5eef2","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-981","next":"us-ok/okla.-stat.-tit.-36-36-983"},"notice":"GroundRules: Original legal text. Not legal advice."}