3901-1-21 Catastrophe coverage.

(A) Purpose

This rule provides for the writing of catastrophe policies with a minimum retention by the insured of $100,000 for loss or damage to property by fire and allied lines. The customary rating methods currently used by fire insurers do not apply to the rating of risks of this nature, inasmuch as the rating factors for catastrophe coverage vary considerably according to the unique circumstances attendant each risk.

(B) The Existing Bulletin Superseded

This rule supersedes existing Department of Insurance Bulletin 48, dated December 1, 1965.

(1) Pursuant to authority contained in Section 3935.04(F) Ohio Revised Code, it is hereby ruled that filing requirements are suspended in respect to rates for catastrophes or losses in excess of a minimum retention of $100,000 by the insured.

(2) The retention as to each loss occurrence must, in each case, be a minimum of $100,000.

(3) The insured must warrant that this retention shall not be covered by any other policy of insurance.

(D) The Copy of Policy

A copy of any policy and a brief analysis of the risk written under this suspension shall be filed with the Superintendent within 10 days after the policy has been issued.

(E) Statistics

Insurers writing such coverage shall maintain separate statistics on this class of business and shall report such figures to the Superintendent of Insurance upon request.

(F) Effective Date

These rules shall take effect on the 20th day of January, 1967.

R.C. 119.032 review dates: 12/27/2007 and 12/27/2012

Promulgated Under: 119.03

Statutory Authority: 3901.041

Rule Amplifies: 3935.04

Prior Effective Dates: 1/20/1967