STATE OF CALIFORNIA · PDF filestate of california department of insurance . statistical analysis division . statistical plan . for . private passenger . motor vehicle liability

STATE OF CALIFORNIA

DEPARTMENT OF INSURANCE

STATISTICAL ANALYSIS DIVISION

STATISTICAL PLAN FOR PRIVATE PASSENGER MOTOR VEHICLE LIABILITY FOR REPORTING YEAR 2009

AUTO LIABILITY 1 Reporting Year 2009

PRIVATE PASSENGER MOTOR VEHICLE STATISTICAL PLAN

I. SCOPE OF THE PLAN:

This plan is applicable to all Private Passenger Motor Vehicle liability direct written business only.

Business written on a non-admitted basis (surplus lines) is not to be reported to the Department nor should the

assumed and ceded reinsurance.

Section §11628(a) of the California Insurance Code requires each insurer licensed to issue or issuing

private passenger motor vehicle liability policies to annually report to the Insurance Commissioner for

examination, its record of loss experience by ZIP code for family-owned private passenger motor vehicle and

lightweight commercial motor vehicles under 1.5 ton load capacity used for local service or retail delivery. The

code also requires insurers to report their statewide loss ratio, loss adjustment expense ratio, expense ratio and

combined ratio on their assigned risk business. An insurer may satisfy its obligation to report statistical data by

providing its loss experience data to a rating or advisory organization for submission to the Commissioner.

This plan contains the necessary instructions and specifications for reporting the required experience of the

following coverages and rating programs.

Coverages: Rating Programs:

Bodily Injury (BI) STANDARD – Preferred / Standard

Property Damage (PD) NONSTANDARD – Sub-Standard

Medical Payments (MP) Assigned Risk

Uninsured Motorist - BI (UM-BI) Direct Excess

Uninsured Motorist - PD (UM-PD) Motorcycle

(excludes Collision Deductible Waiver) Low Cost Policy

Combined Single Limits - BI (CSL-BI)

Combined Single Limits – PD (CSL-PD)

Combined Single Limits - UM (CSL-UM)

II. SECTIONS OF THE PLAN:

This plan is divided into three sections:

1. General Rules

2. Transmittal Forms Reporting

3. Data Reporting Format

I. GENERAL RULES SECTION

I. GENERAL RULES

IMPORTANT NOTICE:

Insurers or groups writing less than 10 million dollars annually may report their data under the Minimum Plan. This

allows them to omit a group of fields in their report, as indicated by boxes, in various sections of the plan. However, if a

company is eligible to report under the minimum plan and decides to report the fields they were supposed to omit, they should

report under the full plan altogether. Reports under the minimum plan that are submitted by insurers who write more than 10

million dollars annually will be rejected.

Insurers or groups writing more than 10 million dollars annually have to report under the Full Plan. No data fields in the

coverages or programs may be omitted unless they are not actually being offered. For questions or further clarification,

contact the Department of Insurance.

Note: Premiums Less Than One Million Dollars per Experience Year

Insurers writing less than one million dollars annually for experience years 2006, 2007 and 2008 DO NOT need to report

their data in the output medium. However, they must provide summary data on the transmittal forms.

A. EXPERIENCE PERIOD:

Insurers shall report, annually, the experience of the three years immediately preceding the reporting year. Insurers

who file a consolidated annual statement as a group of companies may submit consolidated experience. Premiums

and exposures are to be reported on a calendar year basis while losses are to be reported on an accident year basis.

All accident year losses must be evaluated as of March 31, 2009.

B. REPORTING DUE DATES:

1. All required data must be submitted to the Department of Insurance no later than September 1, 2009.

Note: The department has adjusted the Liability Experience and Assigned Risk Data Workbook due date to parallel the timeframe of the SAL 2007 data review process. The department anticipates that the SAL 2007 data review results and communication will help insurers make corrections to their SAL 2009 data workbook prior to the 9/1/09 due date.

2. See Item F (Penalties and Charges) regarding late submissions.

C. METHOD OF REPORTING:

1. Transmittal Forms

Summary figures are to be reported on the transmittal forms as indicated on the transmittal form reporting

section. The transmittal forms spreadsheet can be submitted in two ways:

♦ via mail on a 3 ½” IBM compatible diskette

♦ via E-mail


I. GENERAL RULES (Continued…)

A hardcopy of the transmittal forms must also be submitted to the Department. If you are unable to process an

Excel file, please contact this office for further instructions.

2. Data by ZIP Code

All data must be submitted on an output medium [diskette, electronic data file (e-mail) or CD] as specified in

the Data Reporting Format Section. The data submitted must match the summary figures as reported on the

transmittal forms - that is, STANDARD, NONSTANDARD, Assigned Risk, Direct Excess, Motorcycle and Low

Cost experience. The data reported in the output medium MUST match those reported in the transmittal forms.

REPORTING COLLISION DEDUCTIBLE WAIVER and UNINSURED MOTORIST –

PROPERTY DAMAGE EXPERIENCE

Collision Deductible Waiver experience should be reported only on the PHYSICAL

DAMAGE submission.

Note that Uninsured Motorist – Property Damage (UMPD) coverage is limited to

$3,500 and covers the cost of repairing the insured vehicle in the event an uninsured

motorist is at fault and the insured DOES NOT have collision coverage. If the insured has

collision coverage and also has some type of uninsured motorist protection to cover

damages to the insured vehicle, then uninsured motorist – property damage coverage

experience is to be reported under Collision Deductible Waiver in the Physical Damage

submission.

D. EDITING PROCEDURE:

1. Companies should establish their own editing programs and procedures to detect errors and should validate codes

and statistical data reported.

2. Totals on output medium must balance with totals on transmittal forms. The data submitted must reconcile with the

annual statement.

3. All data will be tested for accuracy and reasonability. Records that do not pass the editing tests will be returned to

the company for corrections and must be resubmitted within 15 calendar days.



4. Resubmissions must always be accompanied by:

♦ transmittal form B

♦ portions of the transmittal forms that have been updated/revised in hardcopy format

♦ if revised, entire transmittal submitted electronically

♦ if revised, entire data on selected output medium

♦ a notarized affidavit

5. Failure to submit a report free of errors with your second resubmission will deem your company as

non-compliant with Section §11628(a) and CIC §700(a). Non-compliant companies will be subject to

fines per CIC §11628(g) as described in Section F below.

E. AFFIDAVIT:

Reports must be submitted with an affidavit made under oath before a notary public for each submission or

resubmission.

F. PENALTIES AND CHARGES:

The insurer's failure to submit its experience error-free by the due dates will be considered as non-compliant

with Section 11628(a) and Section 700(c) of the California Insurance Code. Non-compliant companies will

be subject to Section §11628(g) which provides as follows:

“Any person subject to regulation by the commissioner pursuant to this code that fails to comply with a data call

required by the department pursuant to subdivision (a) shall be liable to the state for a civil penalty in an amount not

exceeding five thousand dollars ($5,000) for each 30-day period that a company is not in compliance, unless the failure is

willful, in which case the civil penalty shall be in an amount not to exceed $10,000 for each 30-day period that the person is

not in compliance, but not to exceed an aggregate amount of one hundred thousand dollars ($100,000). The Commissioner

shall collect the amount so payable and may bring an action in the name of the people of the State of California to enforce

collection. These penalties shall be in addition to other penalties provided by law.”

IMPORTANT NOTE for GROUP SUBMISSIONS:

If subject to penalty, each company listed in a group submission will be charged.




G. PROPRIETARY POLICY:

As a general rule all data submitted to the California Department of Insurance (CDI) Statistical Analysis Division is

deemed to be proprietary in nature and treated as confidential. Data will only be released in the aggregate so no individual

company experience is revealed, unless;

a. Mandated by California Insurance Code or California Code of Regulations.

b. Requested by other CDI Units for internal use, but continue to maintain confidentiality.

c. Ordered by the Insurance Commissioner or Legislative Insurance Committee in the public interest, and does not

conflict with proprietary protection under current law.

H. COMMUNICATIONS:

All communications must be directed to:

Dairyn Valencia (213) 346-6326 or [email protected]

Luciano Gobbo (213) 346-6308 or [email protected]

FAX No. (213) 897-6571

California Department of Insurance Statistical Analysis Division

300 South Spring Street Los Angeles, CA 90013

Attention: SAL/AR-2009

Note: For an e-mail submission, use the following e-mail address:

[email protected]

For Resubmissions: Please e-mail them directly to the analyst reviewing your company’s report.

mailto:[email protected]



II. TRANSMITTAL FORM REPORTING SECTION

1. Forms B, B2: Company Information (CoInfo-Part I and CoInfo-Part

II) 2. Forms C – Z: Summary Data by Experience Year, Coverage, &

Program 3. Form AA: Liability Reconciliation Report 4. Form AB: Assigned Risk 5. Form AG: Coverage Limits 6. Form AG2: Top 7 Limits Per Coverage


II. TRANSMITTAL FORM REPORTING

1. ACCESSING TRANSMITTAL FORMS ( B – AG):

This section provides the instructions for reporting the figures on Transmittal Forms B to AG in a Microsoft Excel

workbook file (SAL-2009.xls). Only one company or group data can be submitted on each file.

a) System Requirement

♦ The transmittal forms will only run on Microsoft Excel.

♦ In order to open the forms, your company should have Internet Explorer 7 or higher or a comparable web

browser.

♦ The SAL 2009 Excel forms will only run on Microsoft (MS) Excel 97 or higher. Please do the following

to ensure that the department will be able to load your company’s data submission:

1. In the process of saving the Excel file, please check your security settings. To check security settings,

go to Tools/Options/Security/Macro Security. In order for the department to load your company’s

submitted data, the department recommends that you set your Macro security to “Low”. The default

of the MS Excel is to have the macro security at “high”.

2. If you have the latest Microsoft Excel (i.e. MS Excel 2007) application, you may need to accept the

macros (i.e. “Enable Macros”) in order for the department to load your data submission. If you are

experiencing difficulty in opening the Excel forms or have questions, please contact Dairyn Valencia

at 213-346-6326 or Luciano Gobbo at 213-346-6308.

b) Opening File

Click on Transmittal Forms link to open the Excel workbook (SAL-2009.xls) from the Auto Liability

Experience webpage.

Using Microsoft Internet Explorer

♦ A message will be displayed . . .

♦ Select SAVE and indicate destination where you would like to save your file.

♦ Under file name, type SAL-2009 and select SAVE.

♦ Go to Step 2 “Entering Data on Transmittal Forms”.

2. ENTERING DATA ON TRANSMITTAL FORMS:

♦ Using Microsoft Excel, open the SAL-2009 file you have just saved.

♦ Depending on which Excel version you have, a message might appear informing you that . . . The

workbook you are opening contains Macros…- select the ENABLE MACROS button.

♦ An Excel workbook will be opened containing several worksheets.

♦ To select the forms (worksheets), click on the tabs on the lower left corner of the page.

♦ Begin entering data in the appropriate cells. Move from cell to cell using the TAB key.

mailto:[email protected]?subject=SAL%202009

mailto:[email protected]?subject=SAL%202009


II. TRANSMITTAL FORM REPORTING (Continued…)

3. SAVING THE FILE:

When finished entering data, save the data input by selecting FILE and SAVE from the menu or by simply

pressing the SAVE button. This file can be saved to a local drive or a diskette.

4. PRINTING TRANSMITTAL FORMS:

Select FILE and PRINT from the menu in each worksheet to print the individual transmittal forms or use the

given buttons to print.



Instructions on Completing Transmittal Forms

Form B. COMPANY INFORMATION

Transmittal Form B should accompany the company’s data submission or subsequent resubmission(s).

Item 1. Enter company and group code as designated by NAIC. If submitting by group, leave the NAIC

code blank.

Item 2. Enter group name.

Item 2a. Complete company name and mailing address. Enter company name only if submitting data

individually.

Item 3. Enter the information of the company’s contact person.

Item 4. Indicate a technical contact person who can directly answer questions regarding the data

submission.

Item 5. Indicate the name of the company’s Chief Executive Officer.

Item 6. Indicate how the company writes Assigned Risk business by marking the appropriate box.

Item 7. If submitting data as a group, list the NAIC codes and names of member companies included in

the submission.

Item 8. Check the appropriate information related to the company’s data submission. (See also Data

Reporting Format in Section III). Fields for completion date and submission type (individual or

group) are fairly new.

Forms C to Z. PRIVATE PASSENGER MOTOR VEHICLE LIABILITY EXPERIENCE

This will contain the data for Private Passenger Motor Vehicle Liability Experience. Experiences must be

reported for each year, coverage, and program. If there is no experience to report for a particular year and

coverage, leave the worksheet blank. For Companies reporting under the Minimum Plan, see box below

regarding data items that are to be omitted.

Form C contains 2006 Bodily Injury experience

Form D contains 2007 Bodily Injury experience

Form E contains 2008 Bodily Injury experience

Form F contains 2006 Property Damage experience

Form G contains 2007 Property Damage experience

Form H contains 2008 Property Damage experience

Form I contains 2006 Medical Payments experience

Form J contains 2007 Medical Payments experience

Form K contains 2008 Medical Payments experience

Form L contains 2006 Uninsured Motorist - Bodily Injury experience



Form M contains 2007 Uninsured Motorist - Bodily Injury experience

Form N contains 2008 Uninsured Motorist - Bodily Injury experience

Form O contains 2006 Uninsured Motorist - Property Damage experience

Form P contains 2007 Uninsured Motorist - Property Damage experience

Form Q contains 2008 Uninsured Motorist - Property Damage experience

Form R contains 2006 Combined Single Limits - Bodily Injury experience

Form S contains 2007 Combined Single Limits - Bodily Injury experience

Form T contains 2008 Combined Single Limits - Bodily Injury experience

Form U contains 2006 Combined Single Limits - Property Damage experience

Form V contains 2007 Combined Single Limits - Property Damage experience

Form W contains 2008 Combined Single Limits - Property Damage experience

Form X contains 2006 Combined Single Limits - Uninsured Motorist experience

Form Y contains 2007 Combined Single Limits - Uninsured Motorist experience

Form Z contains 2008 Combined Single Limits - Uninsured Motorist experience

For Companies reporting under the Minimum Plan:

The following fields must be omitted:

1. Losses Paid

2. Paid Allocated Loss Adjustment Expense

3. Direct Premium Earned Capped

4. Case Losses Incurred Capped

Form AA. LIABILITY RECONCILIATION REPORT

A reconciliation report must be filed to reconcile the reported premiums on line 19.2, in the State Page Exhibit of the

company’s annual statement for 2006, 2007 and 2008.

Please provide an explanation where reconciliation does not equal to zero.



Form AB. ASSIGNED RISK RATIOS

This form should contain the information required by the Insurance Code to calculate the company’s Assigned Risk

business ratios. The following figures are to be reported on a Calendar Year basis: Written Premium, Earned

Premium, General Expenses, Other Acquisition Expenses, Taxes, Licenses and Fees, Commissions and Unallocated

Loss Adjustment Expenses. The Incurred Loss and Allocated Loss Adjustment Expenses are to be reported on an

Accident Year basis.

The company should specify if the expenses being provided are the actual amounts spent or expense allocations. For

allocated figures, the company is required to provide an explanation of the allocation method on a separate

attachment.

The ratios are automatically calculated using the formulas listed below once the premium and expense figures

are entered in the worksheet.

a. Loss Ratio = ILEP X 100%

b. Loss Adjustment Expense Ratio = ULAE + ALAE

EP X 100%

c. Expense Ratio = [

GenExp+AcqExp2 +Tax+Comm

WP +

GenExp+AcqExp2

EP ] X 100%

d. Combined Ratio = Loss Ratio + Loss Adjustment Expense Ratio + Expense Ratio

where: AcqExp = Other Acquisition Expenses (Calendar Year)

ALAE = Allocated Loss Adjustment Expenses (Accident Year)

Comm = Commissions (Calendar Year)

EP = Earned Premium (Calendar Year - Actual)

GenExp = General Expenses (Calendar Year)

IL = Incurred Loss (Accident Year - Actual)

Tax = Taxes, Licenses, & Fees (Calendar Year)

ULAE = Unallocated Loss Adjustment Expenses (Calendar Year)

WP = Written Premium (Calendar Year - Actual)



Form AC & AD. LOSS DEVELOPMENT FACTOR

REMINDER

These forms had been eliminated. Please continue to use your company’s Loss Development Factors (LDF) using

the information below when you prepare the C records in your data file. We will use the LDF information you

entered in the C records.

Loss development factor (LDF) is a factor that is applied to loss data to project the ultimate loss amounts based on

the company’s actual historical loss experience. Loss development factors should be reported on a case incurred

losses (Paid Losses + Case Reserve) basis and calculated separately by coverage and experience year. Convert the

loss development factors to case incurred losses basis if a different basis was used.

Example: If the loss development factors were calculated by paid losses, the data should be reported as:

LDF (case incurred losses) = Paid Losses X Loss Development Factors (paid losses basis)

Case Incurred Losses

Form AG. COVERAGE LIMITS

Enter the limits of liability for each coverage your company writes. i.e. Bodily Injury coverage – 15/30, 25/50,

50/100, . . .

Form AG2. TOP 7 COVERAGE LIMITS

List the top 7 limits of liability per coverage your company writes. The limits are to be based on exposures in-

force as of December 31, 2008 and indicate the percentage distribution that it represents to all the limits for that

coverage. For example, the number of exposures with 15/30 limit for BI divided by the total exposures of all the

limits for BI.

III. DATA REPORTING FORMAT SECTION


III. DATA REPORTING FORMAT

INSTRUCTIONS AND DEFINITIONS

A = Company ID Record

There is one company ID record per company. This record gives basic company identification.

B = Summary Data Record

This record shows grand totals for each coverage and year grouping. There can be up to 24 summary data

records as there are eight coverage groupings each with three coverage years in this study.

C = Data Block ID Record

The data block ID record must precede experience data records for each detailed ZIP code experience grouping

submitted. An experience grouping is every valid combination of: 1) program type, 2) coverage, 3) experience

year, 4) liability limits and 5) driver status.

D = ZIP Code Data Record

A data record gives an experience recap for a particular experience grouping in one ZIP code only. There

should be a data record for every ZIP code that contains any experience in the grouping it represents. ZIP

codes that do not contain data should not be included. Do not report premiums and losses in separate records.

FORMATTING SPECIFICATIONS

1. OUTPUT MEDIUM: 3.5” diskette, electronic mail or 1x-48x Compatible CD-R.

2. RECORD FORMAT:

a. For diskette, electronic file or CD, submit only in ASCII with fixed length of 103 bytes per record.


DATA REPORTING FORMAT (continued…)

b. Submit the entire 3 years experience in one file. Multiple files for one company are NOT PERMITTED.

c. Diskette or CD submission must be externally labeled in the following manner:

AUTO LIABILITY REPORTING YEAR 2009

NAIC/Group Code: ___________________

Company/Group Name: _________________________

Number of Records: ________________

Submission Type: _______________(indicate if initial or resubmission)

3. FIELD FORMAT:

a. All numeric fields are right justified with leading zeros.

b. There are no decimals in any of these layouts. The loss development factors are multiplied by 1000, leaving a

whole number.

c. All monetary fields are in whole dollars (no cents).

d. Negative numbers: All negative values will have a "-" sign in the left most position, for example,

“-00001200”. Positive amounts are to be left unsigned.


III. DATA REPORTING FORMAT (Continued…)

LAYOUT FOR 'A' (Company ID Record)

Field Name Length Position

1. Record Type 1 1-1

Placing an "A" in this position indicates a company ID record.

2. Company NAIC Code or Group Code 5 2-6

Enter the company code assigned by NAIC. If an insurer files a consolidated annual statement and

reports consolidated experience, then enter the group code assigned by NAIC.

3. Company or Group Name 30 7-36

If the company name is longer than 30 characters, an appropriate abbreviation of the name is acceptable.

If you file a consolidated experience, then enter the group name.

4. Claim Type Code 1 37-37

There are two claim types to choose from:

1 = Claims counted as one claim for each accident (per occurrence).

2 = Claims counted as one claim for each claimant (per claimant).



5. Capping Method Code 1 38-38

For Companies reporting under the Minimum Plan,

Leave this field blank.

There are two capping methods to choose from:

1 = The company writes and reports basic limits only. No capping needed.

2 = The company writes various limits and reports capped premiums and capped losses at basic

limits.

For the purpose of this report basic limits are:

Bodily Injury: $ 15,000 / $ 30,000

Property Damage: $ 5,000

Medical Payments: $ 1,000

Uninsured Motorist – BI: $ 15,000 / $ 30,000

Uninsured Motorist – PD: $ 3,500

Combined Single Limits – BI: $ 30,000

Combined Single Limits – PD: $ 30,000

Combined Single Limits – UM: $ 30,000



LAYOUT FOR 'A' (Continued…)


6. Reporting Basis 1 39-39

Indicate "1" for Calendar/Accident Reporting basis.

7. Statistical Plan 1 40-40

Indicate if you are filing under the Full Statistical Plan or the Minimum Statistical Plan:

0 = Full Statistical Plan

1 = Minimum Statistical Plan

8. Data Call Name and Reporting Year 5 41-45

Type: “SAL09”

9. Run Date 6 46-51

Indicate the date the file was processed in this format MMDDYY – for example, 060108 means June 1, 2008.

10. Blanks 52 52-103



LAYOUT FOR 'B' (Summary Data Record)



A value of "B" must be placed to signify a summary data record.

2. Blanks 3 2-4

3. Coverage Code 2 5-6

A summary record is for one coverage only. There are eight coverages to choose from.

01 = Bodily Injury 05 = Uninsured Motorist - PD 02 = Property Damage 16 = Combined Single Limits – BI 03 = Medical Payments 26 = Combined Single Limits – PD 04 = Uninsured Motorist – BI 07 = Combined Single Limits – UM IMPORTANT NOTICE:

Bodily Injury & Property Damage sold as a package and Uninsured Motorist - BI & Uninsured Motorist - PD data must be reported separately. An actuarial ratio may be used to separate the premiums if they are not readily available individually. Combined Single Limits - PD must be reported separately from Combined Single Limits – BI.

Collision deductible waiver should be excluded from UM-PD and should be reported with the Physical

Damage submission. Collision deductible waiver is defined as uninsured motorist coverage on property damage in the event an uninsured motorist is at fault and the insured’s collision coverage covers the cost of repair to the insured vehicle.

4. Experience Year 2 7-8

A summary record is for one experience year only. Enter the last 2 digits of the experience year.

Example: 2008=08

5. Blank 1 9-9



LAYOUT FOR 'B' (Continued…)


* * * Premiums and exposures are to be reported on a calendar year basis. * * *

6. Direct Premiums Written 9 10-18

Summary of direct premiums written for the coverage and experience year specified. This summarizes

records for all program types, liability limits, driver status and ZIP codes.

7. Direct Exposures Written 9 19-27

Summary of direct exposures written for the coverage and experience year specified. This summarizes


The value must be in VEHICLE MONTHS. For example: 3 cars insured for one year = 36 Vehicle

Months.

8. Direct Premiums Earned 9 28-36

Summary of direct premiums earned at total limits for the coverage and experience year specified. This

summarizes records for all program types, liability limits, driver status and ZIP codes.

9. Direct Exposures Earned 9 37-45

Summary of direct exposures earned for the coverage and experience year specified. This summarizes



Months.





* * * Claims and losses are to be reported on an accident year basis and evaluated as of March 31, 2009. * * *

10. No. of Claims Incurred 9 46-54

Summary of the number of claims incurred for the coverage and experience year specified. This

summarizes records for all program types, liability limits, driver status and ZIP codes. Exclude "closed

without payment" claims.

Claim count shall be reported as follows:

a. Cases to be counted as claims must be only those in connection with which a case reserve and / or payment

has been made. A claim closed without a loss payment shall not be counted as a claim.

b. A claim on which more than one payment is made shall only be counted once and recorded when the case

reserve is initially established.

c. A case involving a loss payment under two or more coverages or types of loss shall be counted as a claim

for each loss under each coverage or type of loss.

d. Salvage, subrogation, and other recoveries (not reinsurance) shall be recorded, as a credit to claim count

only if the recovery is the total loss cost of the claim under that type of loss code.





11. Case Losses Incurred 9 55-63

Summary of case losses incurred is Accident-Year paid losses plus case reserves (but not IBNR and

BULK reserves) for the coverage and experience year specified. Case losses incurred are also reduced by

salvage and subrogation. This summarizes records for all program types, liability limits, driver status and

ZIP codes.

For Companies reporting under the Minimum Plan only:

The following data must be omitted:

12. Losses Paid

13. Paid Allocated Loss Adjustment Expense

14. Direct Premium Earned Capped

15. Case Losses Incurred Capped

Consequently, positions 64 to 103 should be left blank.

12. Losses Paid 9 64-72

Summary of losses paid for the coverage and experience year specified. Losses paid are also reduced by

salvage and subrogation. This summarizes records for all program types, liability limits, driver status and

ZIP codes.





13. Paid Allocated Loss Adjustment Expenses 9 73-81

Summary of paid allocated loss adjustment expenses [also known as Direct Defense and Cost Containment

(DCC) Expenses Paid] for the coverage and experience year specified. This summarizes records for all

program types, liability limits, driver status and ZIP codes.

DCC include defense, litigation, and medical cost containment expenses, whether internal or external. DCC include,

but are not limited to, the following items:

(a) Surveillance expenses;

(b) Fixed amounts for medical cost containment expenses;

(c) Litigation management expenses;

(d) Loss adjustment expenses for participation in voluntary and involuntary market pools if reported by accident

year;

(e) Fees or salaries for appraisers, private investigators, hearings representatives, reinspectors and fraud

investigators, if working in defense of a claim, and fees or salaries for rehabilitation nurses, if the cost is not

included in losses;

(f) Attorney fees incurred owning to a duty to defend, even when other coverage does not exist; and

(g) The cost of engaging experts





Premiums and case losses incurred reported below are capped at

basic limits. For the purpose of this report basic limits are:

• Bodily Injury • Property Damage • Medical Payments • Uninsured Motorist – BI • Uninsured Motorist – PD • Combined Single Limits – BI • Combined Single Limits – PD • Combined Single Limits – UM

$ 15,000 / $30,000 $ 5,000 $ 1,000 $ 15,000 / $30,000 $ 3,500 $ 30,000 $ 30,000 $ 30,000

14. Direct Premiums Earned Capped 9 82-90

Summary of direct premiums earned capped for the coverage and experience year specified. This

summarizes records for all program types, liability limits, driver status and ZIP codes. Direct premiums

earned capped are the earned premium adjusted to a basic limit level. Thus, it is the premium earned if all

the exposures were converted to basic limits.

If the base rate was developed based on a coverage limit other than the basic limit, convert the increase

limit factors to the basic limit basis first before computing the factor used to compute the Earned Premium

capped by ZIP code.

Example: Company writes 20/40, 25/50 and 50/100 for Bodily Injury coverage. The base rate is calculated

based on 20/40 coverage limit.

Bodily Injury

15/30

20/40

25/50

50/100

Adjusted Increased Limit Factor

1.0

1.1

1.2

1.35

Company’s Increased Limit

Factor

.909

1.0

1.091

1.227





15. Case Losses Incurred Capped 9 91-99

Summary of case losses incurred capped for the coverage and experience year specified. This summarizes

records for all program types, liability limits, driver status and ZIP codes. Case losses incurred capped is

the case losses incurred adjusted to a basic limit level. Thus, it is the case losses incurred if all the

exposures were converted to basic limits.

16. Blanks 4 100-103



LAYOUT FOR 'C' (Data Block ID Record)



Placing a "C" in this position indicates a data block ID record.

2. Block Sequence Number 3 2-4

Every data block record ('C' record) must have a unique identifier number. This number will also be

placed on every experience record ('D' record) that applies to the experience group specified in that 'C'

record. The block sequence number is used to tie in the experience records with the PROGRAM,

COVERAGE, YEAR, LIMIT and DRIVER STATUS information.

The sequence number should begin at one and be incremented by one for every 'C' record created.

3. Company NAIC Code or Group Code 5 5-9

Enter the company code assigned by NAIC. If an insurer files a consolidated annual statement and reports

consolidated experience, then enter the group code assigned by NAIC.

4. Program Code 2 10-11

This code identifies the rating program. There are six programs to choose from.

12 = STANDARD (Preferred & Standard) 05 = Direct Excess

03 = NONSTANDARD (Sub-standard) 06 = Motorcycle

04 = Assigned Risk 94 = Low Cost Policy



LAYOUT FOR 'C' (Continued)


5. Coverage Code 2 12-13

There are eight coverages available to choose from.

01 = Bodily Injury 05 = Uninsured Motorist - PD

02 = Property Damage 16 = Combined Single Limits – BI

03 = Medical Payments 26 = Combined Single Limits - PD

04 = Uninsured Motorist – BI 07 = Combined Single Limits - UM

IMPORTANT NOTICE:

Bodily Injury & Property Damage sold as a package and Uninsured Motorist - BI & Uninsured Motorist -

PD data must be reported separately. An actuarial ratio may be used to separate the premiums if they are

not readily available individually.

LOW COST POLICY: Since this policy is purchased with a single premium for both Bodily Injury

(BI) & Property Damage (PD), a 50/50 split MUST be used when reporting the BI and PD premiums.

Combined Single Limits - PD should also be reported separately from Combined Single Limits - BI.

The CSL-PD figures should not be included in the Property Damage (02) coverage.

Collision deductible waiver should be excluded from UM-PD and should be reported with the Physical

Damage submission. Collision deductible waiver is defined as uninsured motorist coverage on property

damage in the event an uninsured motorist is at fault and the insured’s collision coverage covers the cost

of repair to the insured vehicle.

6. Experience year 2 14-15

Enter the last two digits of the experience year.

Example: 2008=08


DATA REPORTING FORMAT (Continued…)



7. 1000 (x) Loss Development Factor 4 16-19

Loss development factor (LDF) is a factor that is applied to loss data to project the ultimate loss amounts

based on the company’s actual historical loss experience. Loss development factors should be reported on

a case incurred losses (Paid Losses + Case Reserve) basis and calculated separately by coverage and

experience year. Convert the loss development factors to case incurred losses basis if a different basis

was used.

Example: If the loss development factor were calculated by paid losses, the data should be reported as:

LDF (case incurred losses) = Paid Losses X Loss Development Factors (paid losses basis)

Case Incurred Losses

Enter the indicated loss development factor for the specified year, program, and coverage. Note that the

value is multiplied by 1000 with no decimals.

Example: 1.235 = 1235

NOTE: If your company does not have any losses for a particular coverage,

please DO NOT ENTER 0000. Please fill field with 1000.

For Companies reporting under the Minimum Plan: Item 8, Limits of Liability Code, and Item 9, Driver Status must be omitted, consequently,

Position 20 to 103 should be left blank.



LAYOUT FOR 'C' (Continued…)


8. Limits of Liability Code 3 20-22

NOTE:

There is no basic limit for Direct Excess. Use greater than basic limit codes in the C record to

report this program.

010 = Bodily Injury less than basic limit (low cost only) 040 = Uninsured Motorist - BI less than basic limit (low cost only)

011 = Bodily Injury basic limits (15,000/30,000) 041 = Uninsured Motorist - BI basic limits (15,000/30,000)

012 = Bodily Injury greater than basic limits 042 = Uninsured Motorist - BI greater than basic limits

020 = Property Damage less than basic limit (low cost only) 051 = Uninsured Motorist - PD (3,500)

021 = Property Damage basic limit (5,000) 161 = Combined Single Limit - BI basic limit (30,000)

022 = Property Damage @ $10,000 limit 162 = Combined Single Limit - BI greater than basic limit

029 = Property Damage greater than $10,000 261 = Combined Single Limit - PD basic limit (30,000)

030 = Medical Payments less than basic limit 262 = Combined Single Limit - PD greater than basic limit

031 = Medical Payments basic limit (1,000) * 071 = Combined Single Limit - UM basic limit (30,000)

032 = Medical Payments greater than basic limit

072 = Combined Single Limit - UM greater than basic limit





The liability limit codes 010, 020 and 040 are used only for reporting the low cost

auto policies per SB 171 and SB 527 under the program code 94:

010 = Bodily Injury less than basic limits (10,000/20,000)

020 = Property Damage less than basic limit (3,000)

040 = Uninsured Motorist - BI less than basic limits (10,000/20,000)

* Limit Code 031: can also (applies to other programs as well) be used for Low Cost

Auto Program where Medical Payments coverage is provided at $1,000 limit.

9. Driver Status 2 23-24

01 = Good Driver (good driver discount applied)

02 = Non-Good Driver (good driver discount not applied)

10. Blanks 79 25-103



LAYOUT FOR 'D' (ZIP Code Data Record)



Placing a "D" in this position indicates an experience record for one ZIP code. The experience is for a

particular grouping of program, coverage, experience year, liability limit and driver status.

REMINDER:

Do NOT report the same ZIP code more than once for the same Block ID.

2. Block ID No. (Sequence) 3 2-4

This number should correspond with a Block Sequence Number from record ‘C' that identifies the

program, coverage, experience year, liability limit and driver status.

3. ZIP Code 5 5-9

Enter valid California ZIP codes as designated by the United States Postal Service for the garaging

address of the insured exposure. Companies are required to check their own ZIP code list for validity

before submitting their data. The range of California ZIP codes is from 90000 to 96200. ZIP codes out of

this range, are to be automatically considered invalid. Invalid ZIP codes within the range will be

investigated by the Department.





* * * Premiums and exposures are to be reported on a calendar year basis. * * *

4. Direct Premiums Written 9 10-18

Detail direct premiums written are written premiums for the program, coverage, experience year, liability

limit and driver status for the particular ZIP code.

5. Direct Exposures Written 9 19-27

These are the detail direct exposures written for the program, coverage, experience year, liability limit and

driver status for the particular ZIP code.


Months.

6. Direct Premiums Earned 9 28-36

Detail direct premium earned for the program, coverage, experience year, liability limit and driver status

for the particular ZIP code.

7. Direct Exposures Earned 9 37-45

Detail direct exposures earned for the program, coverage, experience year, liability limit and driver status

for the particular ZIP code.


Months.



LAYOUT FOR 'D' (Continued…)


* * * Claims and losses are to be reported on an accident year basis and evaluated as of March 31, 2009. * * *

8. Number of Claims Incurred 9 46-54

Detail claims incurred for the program, coverage, experience year, liability limit and driver status for the

particular ZIP code. Exclude "closed without payment" claims.

Claim count shall be reported as follows:

a. Cases to be counted as claims must be only those in connection with which a case reserve and / or payment

has been made. A claim closed without a loss payment shall not be counted as a claim.

b. A claim on which more than one payment is made shall only be counted once and recorded when the case

reserve is initially established.

c. A case involving a loss payment under two or more coverages or types of loss shall be counted as a

claim for each loss under each coverage or type of loss.

d. Salvage, subrogation, and other recoveries (not reinsurance) shall be recorded, as a credit to

claim count only if the recovery is the total loss cost of the claim under that type of loss code.

9. Case Losses Incurred 9 55-63

Case losses incurred is the Accident-Year paid losses plus case reserves (but not IBNR and BULK

reserves) for the program, coverage, experience year, liability limit and driver status for the particular ZIP

code. Case losses incurred are also reduced by salvage and subrogation.





For Companies reporting under the Minimum Plan only: The following data must be omitted:

10. Losses Paid 11. Paid Allocated Loss Adjustment Expense 12. 1000 (x) Weighted Average Increased Limit Factors 13. Direct Premium Earned Capped 14. Case Losses Incurred Capped

Consequently, positions 64 to 103 should be blank.

10. Losses Paid 9 64-72

Detail losses paid for the program, coverage, experience year, liability limit and driver status for the

particular ZIP code. Losses paid are also reduced by salvage and subrogation.

11. Paid Allocated Loss Adjustment Expenses (PALAE) 9 73-81

Detail paid allocated loss adjustment expenses (also known as Direct Defense and Cost Containment

Expenses Paid – see page 22 for expenses that are included here) for the program, coverage, experience

year, liability limit and driver status for the particular ZIP code. If this item is not available by ZIP code,

then distribute the statewide amount based on the following formula:

PALAE by Zip = Statewide PALAE X Claims by ZIP Code Statewide Claims





12. 1000 (X) Weighted Average Limit Factors 4 82-85

Enter “1000” in this field.

The Department requires the Insurer to provide the actual EARNED PREMIUM

at CAPPED LIMITS resulting in better and more accurate Capped Limit data.

Consequently, the WAIL Factor has been eliminated and replaced with a

constant ‘1000’.

Premiums and case losses incurred reported below are capped at

basic limits. For the purpose of this report basic limits are:

• Bodily Injury • Property Damage • Medical Payments • Uninsured Motorist – BI • Uninsured Motorist – PD • Combined Single Limits – BI • Combined Single Limits – PD • Combined Single Limits – UM

$ 15,000 / $30,000 $ 5,000 $ 1,000 $ 15,000 / $30,000 $ 3,500 $ 30,000 $ 30,000 $ 30,000

13. Direct Premiums Earned Capped 9 86-94

Premiums earned capped are the earned premium adjusted to a basic limit level. Thus, it is the premium

earned if all the exposures were converted to basic limits.

Enter the detail direct premiums earned capped for the program, coverage, experience year, liability limit

and driver status for the particular ZIP code.




Field Name LengthPosition

The following rules apply when reporting Direct Premiums Earned Capped:

a. Direct premium earned capped (EPCap) equals direct premiums earned (EP) for basic limit policies.

b. EPCap is less than EP for greater than basic limit policies (including property damage at $10,000 limit and

excluding direct excess).

c. EPCap equals EP for less than basic limit coverage (applies to medical payment with limits less than $1,000).

d. EPCap equals EP for direct excess and low cost auto policies.

Possible method to calculate the Earned Premium Capped @ Basic by ZIP Code is provided below. Please

note that this is just a suggestion. There are other methods that can be used. DO NOT use statewide factors.

The goal is to provide the best data possible.

• First, calculate a factor by program, coverage, experience year and driver status by ZIP Code.

EXAMPLE: Company writes 15/30, 25/50, 50/100, 100/300 limits of liability for Bodily Injury Coverage

Bodily Injury 15/30 25/50 50/100 100/300

Increased Limit

Factor

1.0 1.10 1.25 1.30

Earned Exposures

(Car months)

100 50 75 80

Computing greater than basic limit data only, the factor will be:

Factor = 50x(1.1) + 75x(1.25) + 80x(1.30)

50+75+80 = 1.233

• Then, compute the Earned Premium Capped by ZIP Code as follows:

Earned Premium Capped = Direct Earned Premium

Factor

(calculated at a ZIP code level for each program, coverage, experience year, and driver status)





14. Case Losses Incurred Capped 9 95-103

Case losses incurred capped are the case incurred losses adjusted to a basic limit level. Thus, it is the

losses incurred if all the exposures were converted to basic limits.

Enter the detail case losses incurred capped for the program, coverage, experience year, liability limit and

driver status for the particular ZIP code.

The following rules apply when reporting Case Losses Incurred Capped:

a. Case losses incurred capped (ILCap) equals case losses incurred (IL) for basic limit policies.

b. ILCap is less than or equal to IL on greater than basic limit policies (including property damage at $10,000 limit

and excluding direct excess).

c. ILCap equals IL for less than basic limit coverage (applies to medical payment with limits less than $1,000).

d. ILCap equals IL for direct excess and low cost auto policies.

Documents

STATE OF CALIFORNIA · PDF filestate of california department of insurance . statistical analysis division . statistical plan . for . private passenger . motor vehicle liability