Private Passenger Automobile Insurance Premium Data Request

STATE OF MARYLAND MARYLAND INSURANCE ADMINISTRATION 525 St. Paul Place, Baltimore, Maryland 21202-2272 To: Select Property and Casualty Insurers Re: Private Passenger Automobile Insurance Premium Data Request Date: August 19, 2003 Bulletin: Property and Casualty 03-14 ***************************************************************************** Pursuant to House Bill 521 (Section 3, Chapter 580, Acts 2002), the Maryland Insurance Administration (“MIA”) hereby requests each property and casualty insurer to provide data related to private passenger automobile (“PPA”) insurance premiums. This information is necessary for the Commissioner to study the impact of premium rates on policies issued by the Maryland Automobile Insurance Fund on the insurance market. Calculate annual premiums, effective July 1, 2003, based on the scenarios shown on the enclosed “PPA Premium Scenarios” for each designated zip code/county. Provide the requested premium data in the Excel spreadsheet formats shown on the enclosed “PPA Excel Format”. In order to expedite this process, submit your premium data in the requested format via diskette or email. Electronic submission is mandatory. No paper documents will be accepted. Data should be submitted to: Cathy Ruppel, Insurance Analyst Property & Casualty Rate and Form Unit Maryland Insurance Administration 525 St Paul Place Baltimore, MD 21202 If you have any questions, please contact Cathy Ruppel, Insurance Analyst, by phone at (410) 468-2316, by fax at (410) 468-2306, or by email at cruppel@mdinsurance.state.md.us. ROBERT L. EHRLICH, JR. GOVERNOR MICHAEL S. STEELE LIEUTENANT GOVERNOR ALFRED W. REDMER, JR. COMMISSIONER JAMES V. MCMAHAN, III DEPUTY COMMISSIONER Property and Casualty Bulletin 03-14 Page 2 Please provide this information no later than September 5, 2003. __________________________________________ Alfred W. Redmer, Jr. Insurance Commissioner Enclosures: PPA Premium Scenarios PPA Excel Format . ROBERT L. EHRLICH, JR. GOVERNOR MICHAEL S. STEELE LIEUTENANT GOVERNOR ALFRED W. REDMER, JR. COMMISSIONER JAMES V. MCMAHAN, III DEPUTY COMMISSIONER Property and Casualty Bulletin 03-14 Page 2 Please provide this information no later than September 5, 2003. __________________________________________ Alfred W. Redmer, Jr. Insurance Commissioner Enclosures: PPA Premium Scenarios PPA Excel Format . 1 PPA Premium Scenarios Provide premiums based on the below listed scenarios and instructions for each designated zip code (county, city/town). Provide the requested information in the excel format attached. Provide annual premiums for the insurer's rating territory that most closely corresponds to the town or city limits or to the zip code designated for that county. Counties for which forms are required; Designated cities or towns and Zip Codes: County City/Town Zip Code Anne Arundel Annapolis 21401 Not Applicable Baltimore City 21218 Baltimore Cockeysville 21030 Carroll Westminster 21157 Frederick Frederick (City) 21701 Harford Belair 21014 Montgomery Rockville 20855 Prince George's Glenn Dale 20769 St. Mary's Leonardtown 20650 Wicomico Salisbury 21801 If your company has multiple tiers, determine tier placement by the information provided in the rating scenarios. If a scenario does not provide sufficient information for tier placement, place the subject of the scenario in the middle or standard tier. The following abbreviations are used in this form: • "COMP" means comprehensive or other than collision coverage; • "PIP" means personal injury protection; and • "UM" means uninsured motorist coverage. • “COLL” means collision coverage Scenarios: For each scenario listed, provide the total annual policy premium (rounded off to whole dollars) in the format shown on the enclosed “PPA Excel Format”. The scenarios use ISO symbols. If you do not use ISO symbols, use comparable symbols as appropriate. Otherwise, do not modify the scenarios rotection; and • "UM" means uninsured motorist coverage. • “COLL” means collision coverage Scenarios: For each scenario listed, provide the total annual policy premium (rounded off to whole dollars) in the format shown on the enclosed “PPA Excel Format”. The scenarios use ISO symbols. If you do not use ISO symbols, use comparable symbols as appropriate. Otherwise, do not modify the scenarios. Scenario 1: Senior Citizen Age 65 Drives a 2000 Buick Regal, ISO symbol 10 If credit is used to determine premium, then calculate as if the driver has the best credit history. Has no accidents or violations in the last 3 years. Retired—pleasure use only. Liability $20,000/$40,000/$15,000 Limited PIP $2,500 UM $20,000/$40,000/$15,000 COMP $100 deductible COLL $250 deductible 2 Scenario 2: Family Rate Premiums given should include coverages for 2 vehicles and 3 drivers, with a multi-car discount and a companion homeowners discount, where available. Married Male Age 45 Drives a 2000 Honda Accord, ISO symbol 14 If credit is used to determine premium, then calculate as if the driver has the best credit history. Drives 20 miles to work each day. Drives 20,000 miles annually. No accidents or violations in past 3 years. Liability $20,000/$40,000/$15,000 Limited PIP $2,500 UM $20,000/$40,000/$15,000 COMP $100 deductible COLL $250 deductible Married Female Age 45 Drives a 2000 Dodge Caravan, ISO symbol 8 If credit is used to determine premium, then calculate as if the driver has the best credit history. Drives 5 miles to work each day. Drives 12,000 miles annually. No accidents or violations in past 3 years. Liability $20,000/$40,000/$15,000 Limited PIP $2,500 UM $20,000/$40,000/$15,000 COMP $100 deductible COLL $250 deductible Young Single Male Age 17 Does not have his own—he is an occasional driver of the 2000 Dodge. Has 1 year of driving experience. Has 1 speeding violation—9 mph over limit 2,000 miles annually. No accidents or violations in past 3 years. Liability $20,000/$40,000/$15,000 Limited PIP $2,500 UM $20,000/$40,000/$15,000 COMP $100 deductible COLL $250 deductible Young Single Male Age 17 Does not have his own—he is an occasional driver of the 2000 Dodge. Has 1 year of driving experience. Has 1 speeding violation—9 mph over limit. Took a driver training course. Has a B average in school. Liability $20,000/$40,000/$15,000 Limited PIP $2,500 UM $20,000/$40,000/$15,000 3 Scenario 3: Young Single Male Age 17 Drives a 2002 Kia Sportage, ISO symbol 15 If credit is used to determine premium, then calculate as if there was no credit history. Drives 10 miles to work each day. Drives 15,000 miles annually. Had an at-fault accident last year that resulted in $1,500 worth of damages to the other vehicle. Liability $20,000/$40,000/$15,000 Full PIP $2,500 UM $20,000/$40,000/$15,000 COMP $100 deductible COLL $250 deductible Scenario 4: Young Single Female Age 17 Drives a 2002 Jeep Liberty Limited, ISO symbol 14 If credit is used to determine premium, then calculate as if there was no credit history. Drives 8 miles to work each day. Drives 12,000 miles annually. No accidents or violations in past 3 years. Liability $20,000/$40,000/$15,000 Full PIP $2,500 UM $20,000/$40,000/$15,000 COMP $100 deductible COLL $250 deductible 17 Drives a 2002 Jeep Liberty Limited, ISO symbol 14 If credit is used to determine premium, then calculate as if there was no credit history. Drives 8 miles to work each day. Drives 12,000 miles annually. No accidents or violations in past 3 years. Liability $20,000/$40,000/$15,000 Full PIP $2,500 UM $20,000/$40,000/$15,000 COMP $100 deductible COLL $250 deductible PPA Excel Format All data must start in cell A2 of the spreadsheet. PLEASE use headers. Below lists the columns in which the data must be placed. The placement of data must conform to this or the submission will be returned. The data must be placed in the following columns: Column Description (A) NAIC Group Code (B) NAIC Company Code (C) Effective Date of rates (mm/dd/yyyy) for New Business (D) NAIC Company Name (NOT NAIC GROUP NAME) (E) Insert an asterisk (*) if credit history is used in rating, otherwise, leave blank. (F) Category of Risk (can vary by scenario). See page 1 of the PPA Premium Scenarios. 1 - if Preferred/Better than average risk 2 - if Standard/Average risk 3 - if Non-Standard/Below average risk (G) Scenario Code (1 through 2) As defined in the PPA Premium Scenarios. For each scenario code: (H) Annual Premium for zip code 21401 (I) Annual Premium for zip code 21218 (J) Annual Premium for zip code 21030 (K) Annual Premium for zip code 21157 (L) Annual Premium for zip code 21701 (M) Annual Premium for zip code 21014 (N) Annual Premium for zip code 20855 (O) Annual Premium for zip code 20769 (P) Annual Premium for zip code 20650 (Q) Annual Premium for zip code 21801 Requirements: 1) ALL ENTRIES MUST IN NUMERIC FORMAT, except for Column (D) and (E). 2) Fill Columns (H) through (Q) with N/A if rates are not available for the scenario. 3) For the Premiums, use numeric format (zero decimal places). Round off to whole numbers. DO NOT USE Currency format. 4) Everything must be on one spreadsheet page remium for zip code 20650 (Q) Annual Premium for zip code 21801 Requirements: 1) ALL ENTRIES MUST IN NUMERIC FORMAT, except for Column (D) and (E). 2) Fill Columns (H) through (Q) with N/A if rates are not available for the scenario. 3) For the Premiums, use numeric format (zero decimal places). Round off to whole numbers. DO NOT USE Currency format. 4) Everything must be on one spreadsheet page. 5) The spreadsheet must be named in the following format: GroupName_Minlimits 0803 (e.g. XYZ Insurance_Minlimits 0803).