§ 2632.9. Use of Data.
10 CA ADC § 2632.9Barclays Official California Code of Regulations
10 CCR § 2632.9
§ 2632.9. Use of Data.
(a) An insurer that does not currently have credible data to support any of the categories for any of the rating factors listed in section 2632.5(c) and (d) may use the following for each such factor in their class plans filed within three years of the effective date of these regulations. An insurer may elect to use more than one of the listed data sources, provided each data source is identified as being primary, secondary, or third etc. The primary data source must be used for all rating factors included in that data source. The secondary data source can be used only if the primary data source does not have information on a specific rating factor or as needed to supplement credibility. The secondary data source must be used for all rating factors included in that data source before using a third data source. Similarly, the third data source can only be used if the secondary data source does not have information on a specific rating factor or as needed to supplement credibility, etc.:
(d) If an insurer elects to use the optional factors average relative frequency band and severity band as listed in Section 2632.5(d)(14) and (15), the bands described in Section 2632.9(e) may be used. Use of the data described in section 2632.9(e) shall not be considered a data source for the purposes of section 2632.9(b) and restrict an insurer from selecting one of the options listed there. An insurer may also elect to use their own data for developing the frequency and severity bands. In the event that an insurer lacks credible data at the census tract level, they shall use zip code data. If the insurer's own zip code data is not fully credible, it shall use the claims frequency and severity for the zip code that is published in the manual described in Section 2632.9(e) either:
(e) The frequency and severity rates and possible band assignments for each zip code in California are shown in the manual entitled “The 2008 California Private Passenger Auto Frequency and Severity Bands Manual, revised May 15, 2008”, and are in their entirety hereby incorporated by reference. This regulation manual is not printed in the California Code of Regulations, but may be examined on our public website.
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 of subsection (e) filed 10-26-2009; operative 10-26-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 44).
4. Change without regulatory effect amending subsection (d) filed 2-1-2024 pursuant to section 100, title 1, California Code of Regulations (Register 2024, No. 5).
This database is current through 6/21/24 Register 2024, No. 25.
Cal. Admin. Code tit. 10, § 2632.9, 10 CA ADC § 2632.9
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