20-358. Disapproval of rates

A. If at any time the director finds that a filing does not meet the standards set forth in section 20-356, he shall, after a hearing held upon not less than ten days' written notice, in which he shall specify the matters to be considered at such hearing, to every insurer and rating organization which made the filing, issue an order specifying in what respects he finds that the filing fails to meet the requirements of the rate regulatory provisions of this article, and stating when, within a reasonable period thereafter, the filing or rating system shall be deemed no longer effective. Copies of the order shall be sent to every such insurer and rating organization. The order shall not affect any contract or policy made or issued prior to the expiration of the period set forth therein.

B. Any person or organization aggrieved with respect to any filing or rating system which is in effect may make written application to the director for a hearing thereon, but the insurer or rating organization which made the filing or uses the rating system shall not be authorized to proceed under this subsection. The application shall specify the grounds to be relied upon by the applicant. If the director finds that the application is made in good faith, that the applicant would be so aggrieved if his grounds are established and that the grounds otherwise justify holding such a hearing, he shall within thirty days after receipt of the application hold a hearing upon not less than ten days' written notice to the applicant and to every insurer and rating organization which made such filing or uses such rating system. If, after the hearing, the director finds that the filing or rating system does not meet the requirements of the rate regulatory provisions of this article, he shall issue an order specifying in what respects he finds that it fails to meet such requirements and stating when, within a reasonable period thereafter, it shall be deemed no longer effective. Copies of the order shall be sent to the applicant and to every such insurer and rating organization. The order shall not affect any contract or policy made or issued prior to the expiration of the period set forth therein.

C. No manual of classifications, rules, rating plan or any modification of any of the foregoing which establishes standards for measuring variations in hazards or expense provisions, or both, and which is being used pursuant to the requirements of section 20-356, shall be disapproved if the rates thereby produced meet the requirements of the rate regulatory provisions of this article.

D. The director may utilize independent contractor examiners experienced in the review of applicable rates and reserves pursuant to sections 20-148 and 20-159 to implement the provisions of this article. All examination and examination related expenses shall be borne by the insurer and shall be paid by the insurance examiners' revolving fund pursuant to section 20-159.