Rate Filing: Benefit Changes

Explanation of the “law only” advisory rate filings recently filed with July effective dates.

“Law O​nly” change

When the Indiana General Assembly​ contemplates an increase to the benefits this is considered a “Law only” change. These filings do not include any new data, trend factors, or loss development analysis that are normally considered in a regular advisory rate filing. That’s why we call it a “law only” filing.

Benefit and Advisory Rate Filing Effective Date Concerns

The ICRB traditionally files advisory rates to be effective on January 1st each year.  However, if a benefit change is passed by the Indiana General Assembly during the course of their legislative session, the effective date of that increase has historically been effective on July 1st.

Depending on whether filings are increased, decreased. or flat will determine the course of action thatt needs to be taken.

“Law Only” Experience Rating and Statistical Reporting

For “law only” filings, the experience ratings factors (ELR & D ratios) do not change so there will not be a mid-term revision to the experience modification. 

A carrier may report rate changes during the policy period by splitting the rate or reporting the rate change under statistical code 0998, “Flat Rate Increase.” This amount is subject to experience rating. Source: NCCI URQ User’s Guide