Missouri Laws 287.930 – Definitions
As used in sections 287.930 to 287.975, the following terms mean:
(1) “Accepted actuarial standards”, the standards adopted by the Casualty Actuarial Society in its Statement of Principles Regarding Property and Casualty Insurance Ratemaking, and the Standards of Practice adopted by the Actuarial Standards Board;
Terms Used In Missouri Laws 287.930
- employee: as used in this chapter shall be construed to mean every person in the service of any employer, as defined in this chapter, under any contract of hire, express or implied, oral or written, or under any appointment or election, including executive officers of corporations. See Missouri Laws 287.020
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- Property: includes real and personal property. See Missouri Laws 1.020
- State: when applied to any of the United States, includes the District of Columbia and the territories, and the words "United States" includes such district and territories. See Missouri Laws 1.020
(2) “Advisory organization”, any entity which either has two or more member insurers or is controlled either directly or indirectly by two or more insurers and which assists insurers in ratemaking related activities. Two or more insurers which have a common ownership or operate in this state under common management or control constitute a single insurer for the purpose of this definition. “Advisory organization” does not include a joint underwriting association, any actuarial or legal consultant, any employee of an insurer or insurers under common control or management or their employees or manager;
(3) “Classification system” or “classification”, the plan, system or arrangement for recognizing differences in exposure to hazards among industries, occupations or operations of insurance policyholders;
(4) “Competitive market”, a market which has not been found to be noncompetitive pursuant to section 287.942;
(5) “Director”, the director of the department of commerce and insurance;
(6) “Expenses”, that portion of any rate attributable to acquisition and field supervision; collection expenses and general expenses; and taxes, licenses and fees;
(7) “Experience rating”, a rating procedure using 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;
(8) “Loss trending”, any procedure for projecting developed losses to the average date of loss for the period during which the policies are to be effective;
(9) “Market”, the interaction between buyers and sellers of workers’ compensation insurance within this state pursuant to the provisions of sections 287.930 to 287.975;
(10) “Noncompetitive market”, a market for which there is a ruling in effect pursuant to section 287.942 that a reasonable degree of competition does not exist;
(11) “Prospective loss costs”, that portion of a rate that does not include provisions for expenses, other than loss adjustment expenses, or profit. “Prospective loss costs” are developed losses projected through loss trending to a future point in time, including any assessments that are loss-based, and ascertained by accepted actuarial standards;
(12) “Pure premium rate”, that portion of the rate which represents the loss cost per unit of exposure including loss adjustments expense;
(13) “Rate”, the cost of insurance per exposure base unit, prior to any application of individual risk variations based on loss or expense considerations, and does not include minimum premiums;
(14) “Residual market”, the plan, 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;
(15) “Statistical plan”, the plan, system or arrangement used in collecting data;
(16) “Supplementary rate information”, any manual or plan of rates, classifications system, rating schedule, minimum premium, policy fee, rating rule, rating plan, and any other similar information needed to determine the applicable premium for an insured;
(17) “Supporting information”, the experience and judgment of the filer and the experience or data of other insurers or organizations relied on by the filer, the interpretation of any statistical data relied on by the filer, descriptions of methods used in making the rates and any other similar information required to be filed by the director.