Rhode Island: Regulators ponder diverging rate proposals
The Department of Business Regulation is deciding whether to increase or decrease advisory loss costs. NCCI had proposed an overall 3.9 percent increase while the attorney general is seeking an overall 0.6 percent decrease.
Attorney General Peter F. Kilmartin said a thorough analysis and independent actuarial study led to his determination that NCCI's proposal was too high. Specifically, he objected to:
- NCCI's selected medical trend factor. Kilmartin said NCCI did not use the analytically determined factor he recommended.
- The allowance for loss adjustment expense. Kilmartin said it did not take into account historical results.
- What he termed an "inappropriate factor to adjust limited losses to an unlimited basis which is wholly unsupported by historical data."
The Department of Business Regulation is reviewing public comments on the proposals and expects to have a decision soon.
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March 24, 2011
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