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CA Department of Insurance
CA Department of Insurance
CA Department of Insurance

Information Related to Class Plan Development

The auto rating factor regulations (California Code of Regulations, Title 10, Section 2632) specify the process to be followed in the development of classification plans that determine who pays how much for auto insurance. This page contains information on three areas relevant to the development of a classification plan for private passenger auto insurance, and a fourth area covered in the regulations having to do with the data collection and retention requirements for auto insurers:

  1. The paper on sequential analysis guidelines discusses a data analysis procedure to be followed to ensure that the safety record, mileage, and years licensed rating factors are developed in such a way to maximize their contributions. These guidelines also address removing the influence of previously developed rating factors.
  2. The alternate weighting file is a representative sample of the California private passenger auto insurance market. It is provided to insurers as an optional source of data for calculating the weights of the rating factors in their classification plan. The file contains 10,000 records. The information comes in two parts:
    1. A document that describes the data items and their positions in the file, and
    2. The file itself is available as a zipped Excel file (670KB).
  3. The Frequency and Severity Bands Manual contains data on the claims frequency and claims severity for most of the zip codes in California. It can be used as is to create rating bands or used to credibility adjust non-credible data an insurer may have. The information available on the manual is as follows:
    1. A document that contains the title page, preface, and table of contents for the manual,
    2. A Excel spreadsheet (2.49 MB) that contains the actual data, and
    3. A paper describing the data and process used to create the manual.

Questions to 2008 Bands Manual may be directed to Brandt Stevens at (916) 492-3515.

  1. The data collection and retention requirements are contained in two documents:
    1. The initial requirements were released Feb. 4, 1997 in Circular PPA-DRG,
    2. These were followed by a set of questions and answers on Apr. 28, 1997 in Circular PPA-DRG-Q&A.
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