NRS 686B.073 Program of flex-rated filing; qualifications for filing under program; circumstances under which filing under program not allowed; review by Commissioner of filings; regulations.

861 words·~4 min read·/nv/chapter-686b-rates-and-essential-insurance/686b-073·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. The Commissioner shall establish a program of flex-rated filing to allow an insurer that issues a line of property insurance that provides coverage for real property to make a filing for a proposed increase in a rate for that line of insurance under the program, in lieu of making a filing pursuant to NRS 686B.070 , if the proposed increase does not exceed either of the flex-rated filing thresholds established by the Commissioner and all other requirements of this section are met.

2. To qualify for filing under the program of flex-rated filing established pursuant to this section:

(a)The filing must be limited solely to a proposed increase in a rate and must not contain changes to any supplementary rate information;

(b)The proposed increase in the rate must not exceed either of the flex-rated filing thresholds which are in effect at the time the filing is made;

(c)The proposed increase must not take effect for any existing policyholder that will be affected by the proposed increase until the date on which the policy of the policyholder is renewed; and

(d)The date on which the first existing policyholder will be affected by the proposed increase must be not earlier than 45 days after the date on which the filing is made.

3. An insurer may not make a filing for a proposed increase in a rate under the program of flex-rated filing established pursuant to this section if:

(a)The cumulative effect of the filing and all other filings filed by the insurer on the same line of insurance within the 12 months immediately preceding the proposed effective date of the proposed increase exceeds either of the flex-rated filing thresholds which are in effect on the date the filing is made; and

(b)Any policyholder that will be affected by the proposed increase has been affected by an increase filed under the program of flex-rated filing within the 12 months immediately preceding the proposed effective date of the proposed increase.

4. The Commissioner shall review each proposed increase in a rate filed under the program of flex-rated filing established pursuant to this section. If the Commissioner, within 15 days after the date on which the filing is made, finds that a proposed increase does not comply with the provisions of subsection 2 or 3 or subsection 1 of NRS 686B.050 , the Commissioner shall provide notice to the insurer and subsequently treat the filing as if it were filed pursuant to NRS 686B.070 . If the Commissioner has not provided the notice to the insurer within 15 days after the date on which the filing is made, the filing shall be deemed to be approved.

5. On or before June 1, 2026, the Commissioner shall establish the maximum percentage of overall rate impact and the maximum percentage of individual rate disruption for a filing for a proposed increase in a rate to qualify for filing under the program of flex-rated filing established pursuant to this section. Thereafter, on or before June 1 of any year, the Commissioner may adjust the flex-rated filing thresholds to take effect on June 1 of that year. In establishing the initial and adjusted flex-rated filing thresholds pursuant to this subsection, the Commissioner shall:

(a)Before establishing the flex-rated filing thresholds, solicit public input and hold a public hearing on the matter to consider past and future economic conditions; and

(b)Establish the maximum percentage of overall rate impact to be a percentage that is not less than 3 percent.

6. For the purposes of this section, the filing of a proposed increase in a rate under the program of flex-rated filing established pursuant to this section shall be deemed to be made on the date on which it is submitted to the Commissioner using the System for Electronic Rates and Forms Filing developed and implemented by the National Association of Insurance Commissioners or any successor system.

7. The Commissioner may adopt regulations to carry out the provisions of this section.

8. As used in this section:

(a)“Flex-rated filing threshold” means the maximum percentage of:

(1)Overall rate impact; and

(2)Individual rate disruption,

Ê that the Commissioner has established pursuant to subsection 5 for a filing for a proposed increase in a rate to qualify for filing under the program of flex-rated filing established pursuant to this section.

(b)“Individual rate disruption” means the largest percentage increase in the amount of the premiums of any single policyholder affected by a filing for a proposed increase in a rate that will occur if the proposed increase becomes effective.

(c)“Overall rate impact” means the amount, expressed as a percentage, obtained by dividing the total aggregate amount by which all premiums for all policyholders affected by a filing for a proposed increase in a rate will be increased if the proposed increase becomes effective by the total aggregate amount of all premiums for those policyholders on the day immediately preceding the proposed effective date of the proposed increase.