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Bulletin No. 95-01

Filing of loss cost documents for commercial property and liability insurance

Issued and entered February 22, 1995 by Patrick M. McQueen, Acting Commissioner of Insurance

On June 30, 1994, Bulletin 94-5 was issued with the expressed purpose of streamlining the process insurers use when submitting commercial property and liability rate filings. That bulletin contained a change in the area of loss cost documents and related filings. Since that time, questions have arisen regarding the lines to which this change applies and how filings are to be made under this new process. This bulletin is intended to provide that clarification.

Under current filing procedures, whenever a rating or advisory organization files a new loss cost document with the Bureau, all companies adopting that document must make a filing to that effect, together with the multiplier they will be using. Effective immediately, after a company's initial loss cost filing, filings will only be required if an insurer chooses not to adopt the new loss cost document or chooses not to accept the advisory organization's effective date. Further any multiplier on file will remain on file, and will apply to any new loss cost document until the insurer files a different multiplier.


Filings are required by all companies who do not wish to adopt a filing on the rating or advisory organization's effective date. A time deviation filing consisting of a filing transmittal letter and forms INS 700 and INS 782 submitted in duplicate will allow a temporary delay in adoption for a period of six months. Longer requests will be considered on a case-by-case basis if the company documents the need for further delay. Chapter 9 of the Property and Liability Insurance Filing Procedures Manual has instructions for filing a time deviation. A separate time deviation filing must be made for each line of insurance or if there are different effective dates or company implementation dates on different advisory organization filings.

Companies that have not filed to adopt a loss costs rating approach (still using pre-loss costs manual until January 1, 1996) do not have to file a time deviation to a loss costs reference document.


Companies which are members of rating or advisory organizations have until January 1, 1996 to adopt loss costs. Therefore, any member company that has never adopted loss costs should be using the rules and rates last filed on their behalf prior to the organization's first loss costs filing.

Companies which have already adopted the loss costs format but do not wish to adopt the most recent Loss Costs Reference Document must file the printed manual pages they intend to use, including the old loss costs pages. The non-adoption filing must include submission forms INS 700 and INS 705 along with the manual pages being used.


Michigan has established January 1, 1996 as the transition date for all companies to adopt loss costs or file the complete rating manual being used in lieu of the rating or advisory organization loss costs rating manual filed on behalf of the company. Because of complete ISO manual revisions in Commercial Inland Marine and Crime, as of September 1, 1992, member companies are required to either adopt loss costs or file a complete rating manual for these two lines.

Companies making an initial loss costs filing must file submission forms INS 700, INS 705 and INS 789 with a manual page containing rules for minimum written premiums and return premium. Please refer to Chapter 14 of the Property and Liability Insurance Filing Procedures Manual for further information.

This bulletin applies to all lines for which loss costs are filed. It does not supersede Bulletin 94-5 but is meant to be read in conjunction with it. Advisory organization members/subscribers who write private passenger auto, homeowners, or workers' compensation insurance in Michigan are advised that complete rate pages for those lines must still be filed with the Bureau. Further, any deviation from rules filed on behalf of members/subscribers must be filed on manual pages. Please remember that the National Council on Compensation Insurance (NCCI) and the Compensation Advisory Organization of Michigan (CAOM) do not file rates, rules or forms on an insurer's behalf. Each insurer is responsible for filing the manual roles, rates and forms that it will utilize.


Any questions regarding this bulletin should be addressed to the Commercial Market Standards Division, Michigan Insurance Bureau, P.O. Box 30220, Lansing, MI 48909, (517) 373-0242.

The Commissioner retains the authority to issue such further orders or bulletins as he shall deem necessary and appropriate.