Sec. 154.1. General rules governing multi-tier programs

(a) Each multi-tier program shall be filed with the superintendent for approval. The rating systems associated with the various rate levels shall comply with all existing statutes and regulations governing private passenger motor vehicle insurance in this state. A policy of private passenger motor vehicle insurance for the purpose of this Part shall mean a covered policy of automobile insurance, as defined in section 3425 of the Insurance Law, providing liability or physical damage insurance or both. The various required private passenger motor vehicle premium credits and surcharges shall be part of, and applied to insureds in, each and every rating tier. Such credits and surcharges may vary by tier.

(b) Each multi-tier program filing shall contain a general overview of the insurer's business plan that considers:

(1) the insurer's multi-tier marketing objectives (e.g., appointing producers, or directly soliciting business, in territories with higher than average AIP populations);

(2) the insurer's multi-tier underwriting objectives (e.g., changes in underwriting guidelines that will enable the insurer to offer coverage to risks that previously did not meet the insurer's underwriting guidelines); and

(3) the interaction of the previous two paragraphs with the various Department of Financial Services initiatives to depopulate the AIP (e.g., the territorial credit program).

(c) Each multi-tier program filing shall contain a detailed explanation of the rate differential between tiers, and the maximum increase that can result at any one time from moving insureds from lower rated tiers to higher rated tiers (i.e., from tiers with lower premiums to tiers with higher premiums).

(d) Each multi-tier program filing shall contain a territorial rate comparison between the rates in the filed program and the rates in the AIP. This comparison shall display, by territory, the insurer's combined liability rates ($25,000/50,000 residual bodily injury, $10,000 property damage liability, $50,000 personal injury protection, and $25,000/50,000 uninsured motorists) or a comparable combined single limit, for an adult male, age 35, in the highest rated tier and the corresponding rate package in the AIP; and the insurer's liability plus physical damage rates ($200 deductible comprehensive plus $200 deductible collision) for an adult male, age 35, in the highest rated tier and the corresponding rate packages in the AIP. The superintendent may request additional rate comparisons.

(e) A sample notice of the insurer's intent to uptier, which complies with section 154.4(a) of this Part, shall be included with each insurer's multi-tier program filing.

(f) A sample disclosure notice that clearly explains the insurer's multi-tier program, which complies with section 154.4(b) of this Part, shall be included with each insurer's multi-tier program filing.

(g) Each insurer shall maintain premium and loss statistics by tier. Such statistics shall be made available to the superintendent upon request.

(h) The superintendent may disapprove any multi-tier program that results in rates that fail to comply with any provision of the Insurance Law.