Minnesota Administrative Rules

2770.1800 EXAMPLES OF SURCHARGE PLAN.

Each company must display on the statement two examples of how their surcharge plan works. One example must show a one-vehicle insured with a $200 premium. The second example must show a two-vehicle insured, with a $200 premium on one vehicle and a $300 premium on the second vehicle. The required format of these examples is contained in part 2770.1900.

If the amount of the surcharge varies between territories, use the highest rated territory and furnish that information on the example.

If the premium includes expenses which are not surcharged, follow this procedure: If there is an $80 bodily injury, property damage premium, expenses of $7, and a 20 percent surcharge, the premium for one chargeable accident would be $94.60. ($80 - $7 = $73; $73 x .20 = $14.60; $14.60 + $80 = $94.60.) This procedure must be explained on the example.

Statutory Authority:

MS s 65B.133

Published Electronically:

September 14, 2007