Property & Casualty Filing Requirements

NOTICE TO FILERS

Effective immediately and in accordance with the requirements of 8 V.S.A. Section 18, the Rates & Forms Section of the Vermont Department of Financial Regulation will begin billing back to filers the reasonable costs of outside consultants hired to review filings.  While the most significant impact of this policy will be on rate filings requiring prior actuarial review, the statute cited above applies to both rate and form filings.  Therefore, an especially complex form filing that, in the commissioner’s discretion, requires review by outside consultants may also be subject to this policy.

Questions about this policy may be directed to Kevin Gaffney, Director of Rates and Forms, at (802) 828-4845 or Phil Keller, Director of Insurance Regulation, at (802) 828-1464.

Histograms

All rate filings must include histograms showing the percentage and dollar changes in premium, respectively, for all existing policyholders in the filed program.

Terrorism Risk Insurance Forms and Pricing

In light of the recent passage by both the US House and Senate of H.R. 26 (Terrorism Risk Insurance Program Reauthorization Act of 2015) and to facilitate expedited review of TRIA filings, please use the “Expedited SERFF Filing Transmittal Document for Terrorism Risk Insurance Forms and Pricing” form. Filers should include the phrase “TRIA2015” in the Product Name field.

Filing Requirements

To ensure compliance, please review the contents of Regulation I-2010-03 Property & Casualty Insurance Filing Procedures and Reporting Requirements.
 

Filing Fee
Each rate, rule and form filing (or any combination) must be accompanied by a non-refundable fee of $50.00 or the retaliatory fee whichever is greater. For rating, advisory or service organizations a non-refundable fee of $150.00.

Vermont requires the Fee Calculation Explanation on the "Filing Fees" tab to be completed. It must show the following:

1. The name of each company (if there is more than one)
2. The state of domicile for each company
3. What the state of domicile charges for a filing fee versus Vermont's filing fee  

If the Fee Calculation does not have this information then the filing will be disapproved and an objection letter will be sent.  Please also review Vermont’s General Instructions.
 

Actuarial Memorandum

Include actuarial memorandum for all filings that include a rate component. The actuarial memorandum should be complete and demonstrate all rating changes.

Broaden, Restrict or Clarify Coverage 
If a form or rule replaces or modifies an existing form or rule please provide a description of the intent and effect of the changes. This should include a notation indicating whether the change results in a broadening, restriction or clarification of coverage

Please note that the "Policy Forms and Endorsements" requirement must also be completed.

Certification Statement
Per Regulation I-2010-03 The filer must certify using the following language that the filing has been properly completed and is in compliance with all applicable Vermont laws, regulations and policies:

"I certify that the attached filing has been completed in accordance with Vermont Regulation I-2010-03 and is in compliance with all applicable Vermont laws and regulations."

The Certification Statement must be on the General Information Tab.

For a complete list of filings that must submit the Certification Statement click here.

Commercial Lines Compliance Certification
Sign and attach the Compliance Certification form, certifying the filing is in compliance with Vermont laws, rules, regulations, bulletins and other Vermont filing requirements.

*Please note the following:
Compliance Certification Form must be submitted simultaneously with the Commercial Lines Property & Casualty Certification Checklist.

*The Commercial Lines Compliance Certification must be submitted with for most commercial filings. The requirement is based on Sub TOI not the type of filing (form, rate, rule, withdrawal, adoption, non adoption or delay of adoption). For a complete list of filings that MUST submit these forms based on TOI click here.  

Commercial Lines Property & Casualty Certification Checklist
Attach the completed Certification Checklist, verifying the requirements have been satisfied.

*Please note the following:
Compliance Certification Form must be submitted simultaneously with the Commercial Lines Property & Casualty Certification Checklist.

*The Commercial Lines Compliance Certification must be submitted with for most commercial filings. The requirement is based on Sub TOI not the type of filing (form, rate, rule, withdrawal, adoption, non adoption or delay of adoption). For a complete list of filings that MUST submit these forms based on TOI click here.  

Loss Cost Adoption Filing
Please include the following forms (attached below), Reference Filing Adoption Form, Summary of Supporting Information Form, and form with variable expense constants.  

Policy Forms and Endorsements
If this filing includes any forms and/or endorsements that change or amend any previously approved forms, attach the previously approved forms here.

Please note that the "Broaden, Restrict & Clarify Coverage" requirement must also be completed.  

Readability Certification
The Commissioner shall not approve any form unless the policy or certificate is written in non-technical, readily understandable language, using words of common, every day usage. The policy text shall achieve a minimum score of 40 on the Flesch reading ease test or an equivalent score on any other approved comparable reading test per Regulation I-2010-03.

Side-By-Side Comparisons
Each filing submission shall be accompanied by a side-by-side comparison. The exhibit shall compare the new rule(s), rate(s), or form(s) with the rate(s), rule(s), or form(s) being replaced. If a filing includes forms, rules or rates that replace existing forms, rules or rates, side-by-side comparisons should be attached. The side-by-side comparison should be presented in a strikeout and underline format.  

Third Party Filing Authorization
Any insurer who uses a third party to submit, defend and approve contract
provisions, must submit a letter of authorization which names the appointed agent, the date and duration of such authorization and any limits which the company impose on the agent. The authorization must be signed by an officer of the corporation.  

Vermont Amendatory Endorsements
Attach Vermont amendatory endorsements for all products that require the endorsements and are used with the policy. 

If a filer meets this requirement through the adoption of Vermont amendatory endorsements filed by their Advisory Service Organization (e.g. ISO, AAIS), it will be sufficient to attest to this fact.  

Additional Points

Common Causes for Review Delays

You can review a list of the most common reasons why a review can be delayed here.