Issued and entered May 23, 1994 by David J. Dykhouse, Commissioner
Sections 2472 and 2664 of the Insurance Code of 1956, as amended,
MCLA 500.2472 and MCLA 500.2664; MSA 24.12472 and 24.12664,
provide, in pertinent part, that the Commissioner shall promulgate
reasonable rules and statistical plans, reasonably adapted to
each of the rating systems on file with him, which may be modified
from time to time and which shall be used thereafter to the
extent applicable to its particular rating system or systems,
by each insurer in the recording and reporting of its loss and
countrywide expense experience, in order that the experience
of all insurers may be made available at least annually in such
form and detail as may be necessary to aid him in determining
whether rating systems comply with the ratemaking standards
set forth in Sections 2403 and 2603 of the Code.
Rules 500.1204 and 500.1304, promulgated thereunder, state
that the Commissioner may issue reasonable guidelines and procedures
relating to the collection and reporting of data for purposes
of evaluating rates and classifications or the extent and nature
of competition. The guidelines and procedures shall provide
for the option of using reasonable sampling techniques, when
practicable, provided that any data thereby obtained are reportable
in a uniform and consistent manner as may be required.
Section 438 of the Insurance code of 1956, as amended, MCLA
500.438; MSA 24.1438, requires each insurer transacting business
in this state to annually, on or before March 1, prepare under
oath and deposit with the Commissioner a statement concerning
its affairs in a form and manner as prescribed by the Commissioner.
This annual statement contains significant statistical data
about the insurer which the Commissioner may use to evaluate
whether the ratemaking standards set forth in Sections 2403
and 2603 are satisfied. To the extent additional information
is required after review of the annual statement, it can be
obtained from the insurer through a specific request or the
examination process. Insurers are required to maintain information
concerning their rating and classification plans which shall
be provided to the Commissioner upon request, and which may
be considered by the Commissioner in evaluating whether an insurer's
rates comply with the ratemaking standards set forth in Sections
2403 and 2603 of the Code.
After due consideration of the requirements of Sections 438,
2472 and 2664 of the Code, and R 500.1204 and R 500.1304, the
Commissioner has determined that, except in regard to workers'
compensation insurance, insurers authorized to transact business
in this state shall not be required to report to the Commissioner
or to any rating organization any data or experience described
in Sections 2472 and 2664. Insurers are authorized to report
such data or experience to licensed rating organization, but
insurers are not required to make such reports.
This bulletin shall not be construed to relieve an insurer
from complying with the statutory requirements of the Insurance
Code. The Commissioner reserves the right to require the submission
of statistical data if in the Commissioner's opinion he has
reason to believe that examination of that data is necessary
or desirable for the protection of the public.