Sec. 161.4. Flexibility bands

(a) Flex-bands will be periodically reviewed by the superintendent, in light of factors such as:

(1) the extent and nature of competition;

(2) size and significance of the coverage;

(3) level and range of rates and rate changes among insurers;

(4) investment and underwriting experience of insurers;

(5) reinsurance availability;

(6) consumer complaints;

(7) extent of denials and restrictions of coverage;

(8) volume of cancellations and nonrenewals; and

(9) changing conditions in the economic, judicial and social environment.

(b) Flex-bands define the extent to which, during a one-year period in connection with a particular market, rate level increases or decreases may take effect without prior approval. The following flex-bands shall be in effect, beginning September 26, 1986, in regard to the specified markets:

(1)	municipal liability	±15%
(2)	public school liability	±15%
(3)	child care liability	±10%
(4)	nonprofit philanthropic and civic activity liability	±15%
(5)	public officials liability	±15%
(6)	nonprofit IRC section 501(c)(3) directors and officers	±10%
(7)	other directors and officers liability	±20%
(8)	professional liability	±20%
(9)	other errors and omissions liability	±20%
(10)	recreational liability	±15%
(11)	other owners, landlords and tenants liability	±15%
(12)	other manufacturers and contractors liability	±15%
(13)	products liability	±20%
(14)	completed operations liability	±20%
(15)	liquor law liability	±15%
(16)	nonlivery commercial motor vehicle	±15%
(17)	CMP combined effect (see section 161.3[b][2][i] exception)	±15%
(18)	business owners policies (BOP)	±15%
(19)	business auto policies (BAP)	±15%
(20)	high limits excess liability renewal policies	±30%
(21)	‘a’ rated renewal policies	±30%
(22)	all other liability	±20%

(c) Flex-bands for legal services insurance and prepaid legal services plans.

(1) The flex-band for a prepaid legal services plan, including legal services insurance written as part of such a plan, is ±20 percent.

(2) The flex-band for legal services insurance written as part of a policy of liability insurance shall be:

(i) the same flex-band that applies to the underlying liability insurance policy, where there is no separate identifiable premium for the legal services insurance; and

(ii) ±20 percent, where there is a separate identifiable premium for the legal services insurance.