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Frequently Asked Questions for Actuarial Services

Please review the Frequently Asked Questions already submitted and answered for this division. If you require further assistance, you may elect to submit a new question to this division staff.

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I was interested to know what rule in the state limits the profit provision percentage a property insurer may indicate.
Rate Change Filings must include a profit loading in the premium. This loading must be reasonably supported using financial/actuarial data, rationales and techniques. One methodology that is sometimes referred to in this analysis is "CAPM" or the Capital Asset Pricing Model. There is no specific rule or statutory reference that stipulates, for example, that the profit load cannot be more than 5% or 10.0%.
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