What it does
WC 00 04 04 (Ed. 4-84) states that a rate change filing is being considered by the proper regulatory authority, that the filing may produce rates different from those on the policy, and that if it does, the insurer will issue an endorsement showing the new rates and their effective date. If the policy lists one state in Item 3.A., the endorsement applies to that state; if more, only to the state in its Schedule.
Who needs it
Policies incepting near a state's rate or loss cost effective date when the new filing has not yet been approved. It preserves the insurer's right, already in Part Five (Our Manuals), to apply manual changes authorized by law to the policy, and gives the insured written notice that premium may move.
Key provisions
- Applies only to the scheduled state on multistate policies.
- Does not say whether rates will rise or fall. The later rate change endorsement shows the approved rates.
Quoting and selling notes
- Tell the insured the quoted premium could change and when the decision is expected.
- Part Five lets the insurer apply manual changes to the policy when authorized by law or the regulator; ask the carrier how the approved filing will treat policies already in force.
- Massachusetts uses its own Pending Premium Change Endorsement (WC 20 04 01).
Related forms
Information Page WC 00 00 01; experience modification WC 00 04 03.
