2008 Forms Filing Procedures

STATE OF CONNECTICUT INSURANCE DEPARTMENT Bulletin PC-62 January 07,2008 To: All Companies Licensed To Write Property and Casualty Insurance Re: New Department Guidelines For P&C Filing Requirements And Transparency of File Review This Bulletin is intended to provide all property and casualty insurers doing business in Connecticut with guidelines and requirements for submitting commercial and personal lines filings to this Department. In response to the industry's need to get products to market as quickly as possible and to address a large volume of filings awaiting review, the state of Connecticut Insurance Department is taking steps to eliminate our backlog and expedite our forms review process (Conn. Gen. Stat. 538a-676). , File and Use Connecticut is a 'File and Use' state so forms filings (other than those specifically excluded in law) may be used withn forty-five (45) days of the date the filing is sent to the Insurance Department. For SERFF filings, the forty-five (45) days starts on the date in the 'Date Submitted' field. Proof of date submitted for paper filings can be postal receipt for certified or return receipt mailing. We understand that some insurers are reluctant to take advantage of the file and use statute. To that end, we believe the following guidelines will help alleviate those concerns by providing direction and guidance for appropriate filing submissions. New Rules and Tools for Forms, Rates, Rules, and Guidelines Submitted to the Department With this Bulletin, the Department is outlining new rules and tools to give insurers additional confidence that the state's statutory and regulatory requirements are being inet enabling insurers to get their products to market as quickly as possible. Effective February 1, 2008, > In addition to the cover letter detailing the company's intent and purpose for the filing, Department transmittal letters will be required with every filing submitted. > Filers will be required to submit completed Department checklists for certain product filings. ( > Submissions that are identified as incomplete during the Department's pre-screening process will be rejected without review. > Filings that are identified as deficient will be considered voluntarily withdrawn if the filer does not respond within 15 business days of the Department's notice of deficiency. P Certain commercial products are being exempted from CT filing requirements in a pilot program described in Department Bulletin PC-63. > Paper filings will not be accepted from companies that subscribe to SERFF. www.ct.gov/cid. P.O. Box 816 Hartford, CT 061'42-0816 An Equal Opportunity Employer Complete P&C Filing The following components constitute a "complete" filing: 9 Transmittal Form (paper filings only) 9 Cover Letter or Explanatory Memorandum 9 Side-by-Side Comparisons 9 Forms Listing with form details 9 Checklist (where available by Department) The following compoilents constitute a "complete" & filing: 9 Transmittal Form (paper filings only) 9 Cover Letter or Explanatory Memorandum 9 Actuarial Memorandum and Exhibits The following components constitute a "complete" & filing: 9 Transmittal Form (paper filings only) 9 Cover Letter or Explanatory Memorandum 9 Side-by-Side Comparisons Again, as of February 1, 2008, all incomplete filings submitted to the Department will be rejected for review. Transmittal Form Attached you will find a copy of the new Connecticut Transmittal Fonn [Exhibit A]. Starting February 1, 2008, this form must be used as the topsheet for all paper P&C filings submitted to the Department. SERFF filers will be required to accurately and completely submit filings. The transmittal form (and submission requirements in SERFF) should be utilized by the filer to assure that the minimum requirements are met. The Department will use the transmittal form to pre-screen each filing. If a form is missing, incomplete or incorrect, (or the SERFF filing is incomplete or incorrect) the Department will reject the submission immediately. Filing fees are considered earned upon receipt. If, after the filing is rejected, the filing is corrected and re- submitted it is considered a new filing and, if applicable, a new filing fee needs to be submitted. When a transmittal form is completed and properly attached, the filing is forwarded for assignment and ultimately for review. If we find that the traizsnzittal foi~i~z inis-states aizy poi-tion of the filiizg 01- indicates attaclzi~zeizts wlzere there are izoize, tlze subiizissioiz will be disapproved. Filings submitted after February 1,2008 without a Connecticut Transmittal Form will be rejected and returned to the filer. Forms List In addition to the transmittal form, the Department is also requesting that each form filing be accompanied by a Forms List. A sainple Forms List is attached [Exlubit B]. Your company's forms list must include the name and number of every form submitted, the type of form (i.e. application, declarations, endorsement, policy, or other), a description of the form, the edition date, if there will be a rate or premiuin impact as a result of the change, if the change is optional or mandatory. The list must include an itemization of every coverage change within each form listed, identified as either: a new or a replacement for an existing coverage; and, if the change 1) broadens, 2) restricts or 3) makes some other change to the coverage. Finally, a detailed explanation of how the coverage(s) are changing must be included on the itemized list. If the company is adopting an advisory organization's (e.g. ISO) form filing with changes, each deviation from the approved filing must be clearly identified and explained. Side-by-Side Comparisons The Department will continue to require side-by-side comparisons when changes are made to existing forms, rules, form deviations from rating organizations (IS0 or AAIS) and personal lines underwriting guidelines. These changes must be identified using underlining, highlights, brackets or strike-throughs. If the filer chooses, the detailed explanation of coverage ,changes may be included in the side-by-side comparison instead of the forms list. If this method is chosen, please make a note in the forms list to that effect (under the colunln "explain coverage change"). Checklists In the spirit of transparency in forms filings, the Department is in the process of developing checklists to be used with each product line. If a checklist exists for the product being submitted, it must be included with the submission. Attached are checklists for Conlrnercial Fire and Allied, Boiler and Machinew, Excess and Umbrella, Commercial Multi Peril, and Professional Liabilitv (claims made) policy forms. Checklists are ineant to help each filer identify the major stahtory and regulatory rules to be -. complied with, they are not exhaustive. The same rules apply to missing or incomplete checklists that apply to transmittal letters, only complete and correct filings will be eligble for full review by a Department examiner. As checklists become available for industry use, as well as revisions to existing checklists, they will be posted on the Department website under the Property and Casualty Division. Once a filing is accepted for full review, we inay identify deficiencies or omissions. If the Department notifies an insurer of any deficiencies of a filing, the Department will now require the insurer to correct the noted deficiencies and submit corrections within 15 business days of notice. Iftlze Departineizt does not receive a i*espoizse withiiz this tinzefiaine (or a request for aiz exteizsion is izot requested and granted), thefiliizg will be deemed withdrawiz and closed without further action. If it is obvious that Connecticut's laws and regulations were disregarded, the Department will disapprove tlzesefilings without furtlzer review. The insurer may resubmit the corrected filing, however, it will be treated as a new submission. We encourage you to use the Department's website at www.ct.gov/cid for access to Insurance Statutes, Regulations and Bulletins. You should also sign up for e-Alerts by registering on our homepage. Your subscription can include updates to only P&C topics or you can request notice of all updates made to the Department site. Finally, effective February 1, 2008, all insurers that subscribe to SERFF must use SERFF for all of their property and casualty filings. Paper filings will be accepted from only those insurers that do not subscribe to SERFF. Thomas R. Sullivan Insurance Commissioner