Nevada Insurance Commissioner Alice A. Molasky-Arman has granted a request by Dairyland Insurance Company (Dairyland) to increase its private passenger automobile insurance rates by an overall 8.5 percent statewide average.
In its filing and supporting information, Dairyland used an actuarial formula, which allocated a 12 percent increase to bodily injury/property damage liability rates and a 16.2 percent increase to comprehensive coverage, with rates for other coverages essentially unchanged, which would have resulted in an overall statewide average increase of 9.4 percent.
The Division’s actuaries concluded that the profitability considerations did not support any increase in comprehensive rates, while a combination of trends and profitability tended to support the liability increase.
Although Molasky-Arman approved an increase in the liability portion of the request, she denied the proposed increase for comprehensive coverage. Liability rate increases will vary from a high of near 20 percent for areas of Washoe County and Las Vegas to a minimal or no change for Blue Diamond.
The new rates will become effective on Dec. 10 for new business and on Jan. 4, 2003 for renewals.
Dairyland is the sixth largest insurer of private passenger automobile insurance in Nevada with coverage provided for over 30,000 automobiles. The last rate change for Dairyland was effective in December 2001 for a 15.8 percent increase.
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