§431:14-103.3 Rate adjustment mandates. (a) Except as otherwise provided by law, the commissioner may mandate insurers to submit new filings for any type of insurance under section 431:14-102 when the commissioner has actuarially sound information that current rates may be excessive, inadequate, or unfairly discriminatory.
(b) Insurers shall submit the new rate filings within one hundred twenty days of the commissioner's mandate.
(c) The new rate filings shall be subject to the rate filing requirements under section 431:14-104.
(d) After the commissioner reviews the new rate filings submitted under this section, if the commissioner finds that the rates are excessive, inadequate, or unfairly discriminatory, the commissioner may adjust the rates for any class of insurance for any insurer pursuant to subsections (e) and (f).
(e) If, any time subsequent to the applicable review period provided for in sections 431:14-104 and 431:14-120, the commissioner does not approve a new rate filing by an insurer, the commissioner shall issue a written notice of disapproval of the filed rate to the insurer. The written notice shall set forth the commissioner's proposed rate and the actuarial, statutory, factual, and legal bases for both the disapproval of the rate filed by the insurer and the commissioner's proposed rate. Within thirty days of the commissioner's written notice of disapproval, the insurer may file a written request to the commissioner for a hearing pursuant to subsection (f); provided that:
(1) If the insurer fails to file a written request for hearing, the commissioner's proposed rate shall become effective sixty days after the expiration of the deadline to file a written request for a hearing; and
(2) If the insurer files a written request for a hearing, the existing effective rate shall remain in effect until sixty days after the final order is rendered by the director of commerce and consumer affairs and the appeals process has been exhausted.
(f) The hearing allowed under subsection (e) shall be conducted under the following procedure:
(1) The hearing shall commence within twenty days of receipt of the written demand for a hearing, and written notice of the hearing shall be provided to the parties not less than ten days prior to the hearing;
(2) The commissioner shall present the commissioner's proposed rate and the insurer shall present its rate filing, in addition to other relevant evidence;
(3) Within fifteen days after the conclusion of the hearing, the hearings officer shall issue a proposed decision; and
(4) The rate found to be in compliance with this article shall be effective sixty days after the final order is rendered by the director of commerce and consumer affairs and the appeals process has been exhausted. [L 1998, c 117, §1; am L 2012, c 258, §3]