Does the DOI care if territorial group rates are the same?

Suppose a new rating plan has a territorial rating factor, and two territorial groups share the same rating factor. Does it matter to the DOI that they have the same factor?

  1. Depends on the filing rules of the state.

  2. If approval required:
    Do they care that you have a new factor? Most likely yes.

Do they care that they are the same? Depends. If it’s a new factor and they’re the same, why have a new factor? Is it a placeholder (they might approve it if you’re going to differentiate down the road)?

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Yes, the plan is to differentiate down the road (or at least analyze the groups separately), but since it’s a new rating plan we think it might be better to keep the factors the same. (to clarify, it’s also a new product, so it’d be the first filing). (sorry for the multiple posts/deletions, first time using the site)

I don’t see an issue then. Most DOIs are pretty reasonable. They’ll need to approve it when you eventually file for differentiated rates down the road anyway. It’s a conversation to have with them.

Also, if it’s a new product, that’s even easier. Most DOIs are pretty lenient with new business rate/rule.

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Why should a DOI care if two territories have the same factor?