Property Insurance Association of Louisiana Instructions for Completing the Revised LA Report of Premiums Written

Transcription

1 Property Insurance Association of Louisiana Instructions for Completing the Revised LA Report of Premiums Written General These instructions outline the information to report to Property Insurance Association of Louisiana (PIAL) each year for use in the calculations of the PIAL assessments. Prior to this newly revised Report of Premiums (ROP) Form, the reporting categories were based on Insurance Services Office, Inc.'s (ISO) Commercial Statistical Plan and Personal Lines Statistical Plan. Under the new reporting form, the reporting categories are based on the National Association of Insurance Commissioners (NAIC) line items reported on the Annual Statement - Exhibit of Premiums and Losses (Statutory page 14) for Louisiana. Because of the change in the starting point for reporting, there are fields from the old form that have been eliminated, as well as new fields that have been added. The new fields of information are highlighted in PINK, to make them easier to identify. Single Reporting Companies will select [Single] if reporting for a single company s Report of Premiums. Group Reporting Companies under common management may submit a combined premium report, or group report. Companies will select [Group] if combining two or more companies Report of Premiums. When using Group Reporting, list all companies comprising the group in the space provided on the first page of the electronic form. After all companies are added, hit the Save and Continue button, then hit the Next button. After each company s Report of Premium is added on the first page, the electronic form will prefill the information entered on the first page onto the second page of the electronic form, where companies will provide the details for each company in the group. Direct Premiums Written This column is where you report the totals from your company's Annual Statement, Exhibit of Premiums and Losses (Statutory page 14). Amounts reported MUST match to amounts found in the corresponding line items for Column 1 Direct Premiums Written (Gross Premiums, Including Policy and Membership Fees, Less Return Premiums and Premiums on Policies Not Taken). Please be aware of the [Save and Continue Later] button at the bottom of each form. If you need to save your information and return later, you must enter your address in the [ Address] field prior to saving. An will be sent to you with a link to your saved form. Use the ed link to return to the saved form. PIAL Report of Premiums Form Instructions Page 1 of 6

2 PIAL Programs Use these columns to report all premiums from programs based on PIAL rates. Columns for reporting these premiums are: Column 1.a. for Fire & Allied - Dwelling and Farm Lines Column 2.a. for Fire & Allied - Commercial Lines (Schedule-Rated Properties) Column 2.c. for Fire & Allied - Commercial Lines (Class-Rated Properties) Column 3.a. for Multi-Peril - Homeowners & Farmowners Lines (Full Service Non-ISO members) Column 3.b.1. for Multi-Peril - Homeowners & Farmowners Lines (Partial Service ISO members) Column 4.a.1. for Multi-Peril - Commercial Lines (Non-ISO Members) Column 4.b.1. for Multi-Peril - Commercial Lines (ISO members) Independent Programs Use these columns to report all premiums from programs not based on PIAL rates. Columns for reporting these premiums are: Column 1.b. for Fire & Allied Dwelling Farm Lines Column 2.b. for Fire & Allied Commercial Lines (Schedule-Rated Properties) Column 2.d. for Fire & Allied Commercial Lines (Class-Rated Properties) Column 3.b.2. for Multi-Peril Homeowners & Farmowners Lines (ISO Members) Column 4.a.2. for Multi-Peril Commercial Lines (Non-ISO Members) Column 4.b.2. for Multi-Peril Commercial Lines (ISO Members) PIAL Report of Premiums Form Instructions Page 2 of 6

3 Deviation Adjustments If the premiums reported for PIAL programs are based on rates which deviate from those published by PIAL, use the rows labeled Adjustments for deviations to PIAL programs to show the adjustments (either positive or negative) to the amounts reported to bring the total premiums to the amount which would have been received using the PIAL rates. Note: In prior years, the total premiums written without deviation was reported. However, per the new electronic Report of Premium form, only modifications or adjustment amounts are reported. Multiple Peril Homeowners and Farmowners Use these columns to report all premiums written for Multiple Peril Homeowners & Farmowners using PIAL rates and/or independently filed programs (ISO and Non-ISO Members): Column 3.a. Multiple Peril Homeowners & Farmowners - PIAL Programs (NOT with ISO) Column 3.b.1. Multiple Peril Homeowners & Farmowners - PIAL Programs (With ISO) Column 3.b.2. Multiple Peril Homeowners & Farmowners Independent Programs to report premiums written for Multi-Peril Homeowners & Farmowners using independently filed programs (regardless of ISO membership). Note: The electronic form companies will be using to Report Premiums does not use the terms Full Service and Partial Service. In the past when filling the Report of Premium form, premiums reported using columns 3.b.1 and 3.b.2. were reported under Partial Service. PIAL Report of Premiums Form Instructions Page 3 of 6

4 Reporting Premiums by Policy Type or Peril General The starting point on the electronic form is the selected line items from the NAIC Annual Statement for the year 2016 Exhibit of Premiums and Losses (Statutory page 14) for Louisiana. REMEMBER TO ROUND TO THE NEAREST THOUSAND. Should any portion of the amounts reported from selected line items not be subject to assessment by PIAL, please enter the amount into column 5. (PW Not Assessed) and report the explanations in the explanation fields at the bottom right of the form. Dwelling and Farm Property Report Dwelling and Farm Monoline policies written from Fire, Allied Lines, and Earthquake lines under the appropriate column and row. For PIAL programs with deviations, report the impact of the deviation, to adjust the premiums written to be comparable to all PIAL program policies. Columns 1.a. and 1.b. PIAL Report of Premiums Form Instructions Page 4 of 6

5 Commercial Monoline Report Commercial Monoline policies written from Fire, Allied Lines, and Earthquake under the appropriate row and column. The columns are delineated by Commercial Schedule-Rated properties and Commercial Class-Rated properties, as well as PIAL Programs and Independent Programs. Louisiana identification codes are: 1 and 4 for Commercial Schedule- Rated, and 2 for Commercial Class-Rated. Columns 2.a. through 2.d. Multiple Peril Lines Report multiple peril policies written from Farmowners, Homeowners, Commercial (nonliability portion), and Earthquake. Columns 3.a. through 4.b.2 PIAL Report of Premiums Form Instructions Page 5 of 6

6 Appendix A: Example results from an example electronic report of premium for XYZ Insurance: REMEMBER TO ROUND TO THE NEAREST THOUSAND In 2016, XYZ Insurance reported on its Annual Statement the following amounts under Direct Premiums Written. Direct Premiums Written: Example Rounded: 1.0 Fire $75, Allied Lines $990, Farmowners M/P $50, Homeowners M/P $2,090, , Commercial M/P $115, Earthquake $2, Additional Details: Dwelling and Farm Policies Fire: $43, Based on PIAL rates - with a deviation 43 $1, Deviation higher than PIAL rates 2 Allied Lines: $840, Based on PIAL rates no deviation 840 Earthquake: $2, Based on PIAL rates no deviation 3 Commercial Monoline Policies Fire: $25, Independent Programs Schedule-Rated 25 $6, Class-Rated 7 Allied Lines: $95, Independent Schedule-Rated 95 $54, Independent Class-Rated 55 Multiple Peril Policies Farmowners: $50, Independent Programs 50 Homeowners: $1,490, Based on PIAL rates with a deviation 1,490 $387, Deviation higher than PIAL rates 388 $600, Independent Programs 600 Commercial: $115, Independent Programs 115 PIAL Report of Premiums Form Instructions Page 6 of 6