Ky. Commissioner Orders Designation of Med-Mal Coverage

Kentucky Insurance Commissioner Janie A. Miller issued an order Jan. 7 requiring all insurers currently writing Medical Malpractice coverage in the state to file current rates and supplementary information, along with all manuals, underwriting rules and guidelines in effect October 1, 2002 through December 31, 2002 within 60 days of the order.

According to the order, supplementary rating information must include but not be limited to the following: rate revision history for the last 5 years (1998-2002); rate level indications or 5 years of historical loss experience for medical malpractice coverage only; a detailed summary of all prospective expense provisions underlying the current rates-commissions, other acquisition expense, general expense, taxes/licenses/fees, and profit provision offset for investment income; for reference filers, a completed LC-1 (and LC-2 if applicable); and the effective date of current rates. KRS 304.13-057 requires that Kentucky specific information be supplied, whether or not it is accompanied by other regional or countrywide data.

All insurers must also file any new Medical Malpractice rates and supplementary rate information not later than 15 days after the first use of the new rates if the rate change is an increase or decrease of 25 percent or less.

Any insurer which proposing to change its existing rates, manuals, or underwriting rules so as to effectively increase or decrease the rates of any classification of risks within any rating territory more than 25 percent within a 12 month period shall file all the rates and supplementary rating information which shall not become effective until approved by the commissioner;

Automobile service contracts issued pursuant to KRS 304.5-070(1)(p) and 806 KAR 5:050, and credit insurance of any and every nature other than Credit Life and Credit Health remain designated lines as initially ordered in Bulletin 92-6.

Workers’ compensation insurance rates must continue to be filed pursuant to KRS 304.13-053 and are subject to a 15 percent increase or decrease threshold for prior approval, also as ordered by Bulletin 92-6.

Filing instructions and forms are available on the Department’s web-site, www.doi.state.ky.us.

Topics Kentucky