## § 2632.8. Factor Weights.

### 10 CA ADC § 2632.8Barclays Official California Code of Regulations

10 CCR § 2632.8

**§ 2632.8. Factor Weights.**

(a) For each type of coverage, factor weights shall be calculated for each of the three mandatory factors listed in Section 2632.5(c)(1) through (3) and for each of the optional factors the insurer elects to utilize in its class plan from Section 2632.5(d). Solely for the purpose of calculating factor weights, bodily injury coverage may be combined with property damage coverage and comprehensive coverage may be combined with collision coverage.

For additive and multiplicative factors, the weight of Rating Factor j = Σ¦(R

_{i}-- R)¦*E_{i}*B. For additive and multiplicative factors, compute, ¦(R_{i}-- R)C0*E_{i}*B for each category of rating factor j. The weight for rating factor j is then the sum of all these numbers (as i runs across all categories of rating factor j).Where R

_{i}-- Balanced relativity of the i^{th}category of rating factor j (the superscript j is omitted, the same below)R -- Weighted average relativity (the balanced relativities are weighted by the percent of exposure so that R should be equal to 0 for additive factors and 1 for multiplicative factors)

E

_{i}-- Percent of exposure in the i^{th}category of rating factor jB --Base rate

(d) The weights of the factors, as calculated in subdivision (c), must align in decreasing order of importance as follows: driving safety record must have the most weight followed by annual miles driven followed by years of driving experience followed by each individual weight of each optional factor. If the weights are not in the order as specified herein then the insurer must correct the relativities of the rating factors as follows:

## Credits

Note: Authority cited: Section 1861.02, Insurance Code; and

*CalFarm Insurance Company*v.*Deukmejian*, (1989) 48 Cal.3d 805. Reference: Sections 1861.02 and 1861.05, Insurance Code.History

1. Certificate of Compliance as to 3-17-94 order including repealer and new section heading transmitted to OAL 7-12-94 and filed 8-23-94; operative 9-22-94 (Register 94, No. 34). For prior history, see Register 94, No. 11.

2. New section filed 7-5-96; operative 8-4-96 (Register 96, No. 27).

3. Amendment filed 12-12-2002; operative 1-11-2003 (Register 2002, No. 50).

4. Amendment of subsections (a), (c) and (d) and new subsection (d)(4) filed 7-14-2006; operative 8-13-2006 (Register 2006, No. 28).

This database is current through 7/5/24 Register 2024, No. 27.

Cal. Admin. Code tit. 10, § 2632.8, 10 CA ADC § 2632.8

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