(a) The number of policed moved from higher rated tiers to lower rated tiers shall not be considered in the calculation of nonrenewals pursuant to section 3425(f).

(b) At least 30 days, but not more than 60 days, in advance of the end of the required policy period, an insurer shall mail or deliver a notice of intent to uptier to each first named insured that the insurer intends to move to a higher rated tier. Pursuant to section 2349, the number of policies moved from lower rated tiers to higher rated tiers in each of the insurer's rating territories for each calendar year shall be limited to three percent of the total number of private passenger automobile policies in force in that territory at last year-end. The three percent limitation shall be in addition to the two percent limitation provided for in section 3425(f).

(d) Each multi-tier program filing shall contain an explanation of how the insurer will determine which policies that meet the uptiering criteria in any given territory will be selected if the total number of the policies exceeds the “three percent” limitation.

(e) The “two for one” new business credits provided for in section 3425(f)(2) shall apply to the “two percent” and “three percent” limitations as follows: for every two new policies written, an insurer may either nonrenew one additional policy in excess of the “two percent” limitation, or may “uptier” one additional policy in excess of the “three percent” limitation.

(f) Each multi-tier program shall provide for an annual review to determine the appropriateness of each insured's tier placement. If, based upon this annual review, the insurer determines that the insured qualifies for a different tier, then the insured shall be moved to the appropriate tier, provided the movement does not violate the limitations contained in this section.

(g) All other provisions of section 3425 are applicable.