Ala. Act No. 2011-644

[LOGO] ROBERT BENTLEY GOVERNOR JIM L. RIDLING COMMISSIONER # STATE OF ALABAMA ## DEPARTMENT OF INSURANCE 201 MONROE STREET, SUITE 502 POST OFFICE BOX 303351 MONTGOMERY, ALABAMA 36130-3351 TELEPHONE: (334) 269-3550 FACSIMILE: (334) 241-4192 INTERNET: www.aldoi.gov DEPUTY COMMISSIONER CHARLES M. ANGELL (acting) CHIEF OF STAFF RAGAN INGRAM CHIEF EXAMINER RICHARD L. FORD STATE FIRE MARSHAL EDWARD S. PAULK GENERAL COUNSEL REYN NORMAN ### BULLETIN NO. 2011-02 TO: All admitted insurers authorized to write homeowners insurance FROM: Jim L. Ridling Commissioner of Insurance JLR DATE: August 26, 2011 EFFECTIVE: September 1, 2011 RE: Ala. Act No. 2011-644 – confidentiality of rate filing information - exhibits required with homeowners rate filings Ala. Act No. 2011-644 was approved by the Governor on June 9, 2011. This Bulletin addresses Section (3) of the Act, which becomes effective September 1, 2011. 1. According to Act §§ (3)(a) and –(b), “[e]xcept as limited in subsection (c), all rate filings and related actuarial information for homeowners insurance coverage in Alabama filed after [September 1, 2011] shall be treated as public information” and “shall be available to the public for review” at the Department’s offices and through the Department’s Internet website. 2. Act § (3)(c) states that “[a]ny proprietary actuarial risk analysis or forecasting information or information otherwise restricted by statute or regulation included in a rate filing or related actuarial information is considered to be a commercially valuable trade secret under [Ala. Code §§ 8-27-1 et seq.] and shall be confidential.” The filer is required to submit “[a]ny such information . . . under separate cover and clearly state the desires of the party filing the information as to its confidentiality.” 3. In order to administer Act § (3), the Department considers that it has authority to determine whether information contained in a rate filing constitutes “proprietary actuarial risk analysis or forecasting information or information otherwise restricted by statute or regulation” for purposes of the “trade secret” protection described in Act § (3)(c), notwithstanding any filer designation of confidentiality. 4. The Department deems the “proprietary actuarial risk analysis or forecasting information” referred to in Act § (3)(c) to include all information contained in a homeowners rate filing, as well as correspondence between the Department and the filing insured concerning the filing, except for the rate/rule manual and the exhibits described in the following paragraph (5). EQUAL OPPORTUNITY EMPLOYER Bulletin No. 2011-02 August 26, 2011 Page 2 5. Each homeowners rate filing made after September 1, 2011, shall include, in PDF format, the information reflected in Exhibits A, B, C, and D to this Bulletin. A new filing requirement has been added to the Supporting Documentation tab in SERFF's TOI 4.0 – Homeowners. Once filed, such data will be publicly accessible as soon as practicable on the Department of Insurance's website and SERFF as required by Act § (3)(b). JLR/JFM/bc # HOMEOWNERS RATE FILING PUBLIC INFORMATION EXHIBIT - OWNER-OCCUPIED EXHIBIT A Company Name Latest Calendar Year Statewide Written Policy Count = Latest Calendar Year Statewide Written Premium = | GULF FRONT | RATING TERR. OR ZONE | 5-YR UNAUDITED INCURRED LOSS RATIOS ALL OTHER NON-HURR | | | | % WIND LOADS USED IN THIS RATE FILING | | RATE CHANGE HISTORY | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | PERILS | WIND | HURR. | TOTAL | NON-HURR | HURR | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | | BEACH | A | | | | | | | | | | | | | | | | B | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | CITY OF MOBILE | C | | | | | | | | | | | | | | | | D | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | SEACOAST | E | | | | | | | | | | | | | | | | F | | | | | | | | | | | | | | | | G | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | REMAINDER OF STATE | H | | | | | | | | | | | | | | | | I | | | | | | | | | | | | | | | | J | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | STATEWIDE | | | | | | | | | | | | | | | | | | Statewide Rate History Detail Maximum rate change for an individual Minimum rate change for an individual % of insureds receiving No change or a decrease + 0.1% to +10% +10.1% to +20% +20.1% to +30% Over +30% | | | | | | | | | | | | | Notes: 1) All loss ratios are to total all-perils earned premium. Please indicate whether your ratios include ALAE, all LAE, or neither. 2) These exhibits are to be provided separately for each Company included in the filing. 3) Each of the Company's rating zones/territories should be allocated to the AIUA Zones (Gulf Front, Beach, City of Mobile, Seacoast, or Remainder of State) as appropriately as possible 4) The % Wind Loads should be the percent of the base rate loaded for non-hurricane wind and hurricane modeled losses, separately. If you are not revising the wind loads in this filing, provide the wind loads used in your prior filing. 5) Provide as much of the Rate Change History as you have available. If your Company has previously filed territorial indications, it is assumed that you have at least 5 years' rate history by territory. Include in the Rate History the premium impacts from this proposed filing. 6) Please add any footnotes required to clarify the data you are providing if it is not consistent with the above instructions. # HOMTOWNERS RATE FILING PUBLIC INFORMATION EXHIBIT - TENANTS EXHIBIT B Company Name Latest Calendar Year Statewide Written Policy Count = Latest Calendar Year Statewide Written Premium = | GULF FRONT | RATING TERR. OR ZONE | 5-YR UNADJUSTED INCURRED LOSS RATIOS ALL OTHER NON-HURR | | | | % WIND LOADS USED IN THIS RATE FILING | | RATE CHANGE HISTORY | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | PERIOD | WIND | HURR. | TOTAL | NON-HURR | HURR | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | | | A | | | | | | | | | | | | | | | | B | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | BEACH | C | | | | | | | | | | | | | | | | D | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | CITY OF MOBILE | E | | | | | | | | | | | | | | | | F | | | | | | | | | | | | | | | | G | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | SEACOAST | H | | | | | | | | | | | | | | | | I | | | | | | | | | | | | | | | | J | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | REMAINDER OF STATE | K | | | | | | | | | | | | | | | | L | | | | | | | | | | | | | | | | M | | | | | | | | | | | | | | | | N | | | | | | | | | | | | | | | | O | | | | | | | | | | | | | | | | P | | | | | | | | | | | | | | | | Q | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | STATEWIDE | | Statewide Rate History Detail Maximum rate change for an individual Minimum rate change for an individual % of insureds receiving: No change or a decrease + 0.1% to +10% +10.1% to +20% +20.1% to +30% Over +30% | | | | | | | | | | | | | Notes: 1) All loss ratios are to total all-periods earned premium. Please indicate whether your ratios include ALAE, all LAE, or neither. 2) These exhibits are to be provided separately for each Company included in the filing. 3) Each of the Company's rating zones/territories should be allocated to the AKJA Zones (Gulf Front, Beach, City of Mobile, Seacoast, or Remainder of State) as appropriately as possible. 4) The % Wind Loads should be the percent of the base rate loaded for non-hurricane wind and hurricane modeled losses, separately. If you are not revising the wind loads in this filing, provide the wind loads used in your prior filing. 5) Provide as much of the Rate Change History as you have available. If your Company has previously filed territorial indications, it is assumed that you have at least 5 years' rate history by territory. Include in the Rate History the premium impacts from this proposed filing. 6) Please add any footnotes required to clarify the data you are providing if it is not consistent with the above instructions. # HOMEOWNERS RATE FILING PUBLIC INFORMATION EXHIBIT - CONDOS EXHIBIT C Company name Latest Calendar Year Statewide Written Policy Count = Latest Calendar Year Statewide Written Premium = | GULF FRONT | RATING TERR. OR ZONE | 5-YR UNADJUSTED INCURRED LOSS RATIOS ALL OTHER NON-HURR | | | | % WIND LOADS USED IN THIS RATE FILING | | RATE CHANGE HISTORY | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | PERILS | WIND | HURR. | TOTAL | NON-HURR | HURR | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | | | A | | | | | | | | | | | | | | | | B | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | BEACH | C | | | | | | | | | | | | | | | | D | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | CITY OF MOBILE | E | | | | | | | | | | | | | | | | F | | | | | | | | | | | | | | | | G | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | SEACOAST | H | | | | | | | | | | | | | | | | I | | | | | | | | | | | | | | | | J | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | REMAINDER OF STATE | K | | | | | | | | | | | | | | | | L | | | | | | | | | | | | | | | | M | | | | | | | | | | | | | | | | N | | | | | | | | | | | | | | | | O | | | | | | | | | | | | | | | | P | | | | | | | | | | | | | | | | Q | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | | STATEWIDE | | Statewide Rate History Detail: Maximum rate change for an individual Minimum rate change for an individual % of insureds receiving: No change or a decrease + 0.1% to +10% +10.1% to +20% +20.1% to +30% Over +30% | | | | | | | | | | | | | Notes: 1) All lost ratios are to total all-perils earned premium. Please indicate whether your ratios include ALAE, all LAE, or neither. 2) These exhibits are to be provided separately for each Company included in the filing. 3) Each of the Company's rating zones/territories should be allocated to the AILIA Zones (Gulf Front, Beach, City of Mobile, Seacoast, or Remainder of State) as appropriately as possible. 4) The % Wind Loads should be the percent of the base rate loaded for non-hurricane wind and hurricane modeled losses, separately. If you are not revising the wind loads in this filing, provide the wind loads used in your prior filing. 5) Provide as much of the Rate Change History as you have available. If your Company has previously filed territorial indications, it is assumed that you have at least 5 years' rate history by territory. Include in the Rate History the premium impacts from this proposed filing. 6) Please add any footnotes required to clarify the data you are providing if it is not consistent with the above instructions. # HOMEOWNERS RATE FILING PUBLIC INFORMATION EXHIBIT EXHIBIT D Company Name EXPENSE EXHIBIT As a % of Premium* | | **2008** | **2009** | **2010** | **2011** | **AVG.** | | --- | --- | --- | --- | --- | --- | | COMMISSIONS | | | | | | | TAXES | | | | | | | GENERAL EXPENSES | | | | | | | OTHER ACQUISITION EXPENSES | | | | | | | TOTAL | | | | | | * Use written or earned premium in these ratios as you deem appropriate in your filing