Okla. Stat. tit. 36, § 36-982

Definitions.

As used in the Property and Casualty Competitive Loss Cost

Rating Act:

1. "Accepted actuarial standards" means the standards adopted

by the Casualty Actuarial Society Statement of Principles regarding

property and casualty ratemaking or the Standards of Practice

adopted by the Actuarial Standards Board;

2. "Advisory organization" means any corporation,

unincorporated association, partnership or person, whether located

inside or outside this state, that is licensed in accordance with

Section 1140 of this title and which assists insurers in ratemaking-

related activities such as enumerated in Section 1142 of this title;

3. "Classification system" or "classification" means the

process of grouping risks with similar risk characteristics so that

differences in costs may be recognized;

4. "Commercial risk" means any kind of risk that is not a

personal risk;

Oklahoma Statutes - Title 36. Insurance Page 229

5. "Commissioner" means the Commissioner of Insurance of this

state;

6. "Competitive market" means a market which has not been found

to be noncompetitive pursuant to Section 984 of this title;

7. "Developed losses" means losses, including loss adjustment

expenses, adjusted using accepted actuarial standards, to eliminate

the effect of differences between current payment or reserve

estimates and those which are anticipated to provide actual ultimate

loss, including loss adjustment expense payments;

8. "Expenses" means that portion of a rate attributable to

acquisition, field supervision, collection expenses, general

expenses, taxes, licenses and fees;

9. "Experience rating" means a rating procedure utilizing past

insurance experience of the individual policyholder to forecast

future losses by measuring the policyholder’s loss experience

against the loss experience of policyholders in the same

classification to produce a prospective premium credit, debit or

unity modification;

10. "Joint underwriting" means a voluntary arrangement

established to provide insurance coverage for a risk pursuant to

which two or more insurers jointly contract with the insured at a

price and under policy terms agreed upon between the insurers;

11. "Loss adjustment expense" means the expenses incurred by

the insurer in the course of settling claims;

12. "Market" means the statewide interaction between buyers and

sellers of identical or readily substitutable products that provide

insurance protection of identifiable perils to buyers;

13. "Mass marketed plan" means a method of selling property-

liability insurance wherein the insurance is offered to employees of

particular employers or to members of particular associations or

organizations or to persons grouped in other ways, and the employer

or association or other organization has agreed to, or otherwise

affiliated itself with, the sale of such insurance to its employees

or members;

14. "Noncompetitive market" means a market for which there is a

ruling in effect pursuant to Section 984 of this title that a

reasonable degree of competition does not exist;

15. "Personal risk" means homeowners, tenants, private

passenger nonfleet automobiles, manufactured homes and other

property and casualty insurance for personal, family or household

needs, including any property and casualty insurance that is

otherwise intended for noncommercial coverage;

16. "Pool" means a voluntary arrangement, established on an

ongoing basis, pursuant to which two or more insurers participate in

the sharing of risks on a predetermined basis. The pool may operate

through an association, syndicate or other pooling agreement;

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17. "Prospective loss costs" means historical aggregate losses

and may include loss adjustment expenses, including all assessments

that are loss based, projected through development to their ultimate

value and through trending to a future point in time;
d basis. The pool may operate

through an association, syndicate or other pooling agreement;

Oklahoma Statutes - Title 36. Insurance Page 230

17. "Prospective loss costs" means historical aggregate losses

and may include loss adjustment expenses, including all assessments

that are loss based, projected through development to their ultimate

value and through trending to a future point in time;

18. "Pure premium rate" means that portion of the rate which

represents the loss costs per unit of exposure including loss

adjustment expense;

19. "Rate" or "rates" means that cost of insurance per exposure

unit whether expressed as a single number or as a prospective loss

cost with an adjustment to account for the treatment of expenses,

profit, and individual insurer variation in loss experience, prior

to any application of individual risk variations based on loss or

expense considerations, and does not include minimum premium;

20. "Residual market mechanism" means an arrangement, either

voluntary or mandated by law, involving participation by insurers in

the equitable apportionment among them of insurance which may be

afforded applicants who are unable to obtain insurance through

ordinary methods;

21. "Special assessments" means guaranty fund assessments,

Special Indemnity Fund assessments, Vocational Rehabilitation Fund

assessments, and other similar assessments. Special assessments

shall not be considered as either expenses or losses;

22. "Statistical plan" means the plan, system or arrangement

used in collecting data;

23. "Supplementary rating information" means any manual or plan

of rates, classification, rating schedule, minimum premium, policy

fee rating rule and any other information needed to determine the

applicable premium in effect or to be in effect. This includes,

rating plans, territory codes and descriptions and rules which

include factors or relativities such as increased limits factors,

deductible discounts or relativities, classification relativities or

similar factors used to determine the rate in effect or to be in

effect;

24. "Supporting information" means the experience and judgment

of the filer and the experience or data of other insurers or

advisory organizations relied upon by the filer, the interpretation

of any other data relied upon by the filer, descriptions of methods

used in making the rates and any other information required by the

Commissioner to be filed; and

25. "Trending" means any procedure for projecting losses to the

average date of loss, or premiums or exposures to the average date

of writing, for the period during which the policies are to be

effective.