Rate Edit Washout Program

On a weekly basis, the rate edit System verifies if premium data has been correctly rated and statistically reported to CAR. Voluntary and ceded private passenger premium and ceded commercial premium records are eligible for rate editing. In general, valid records (meaning no statistical error) are eligible for the rate edit system; however, some error records with certain error conditions are considered eligible for the rate edit system as well.

Error records identified with the following statistical error conditions are eligible for rate editing:

S13 - Rating ID Code (commercial only)

S20 - Zip Code S22 - Pre-insurance Inspection Code

S26 - Annual Statement Line of Business Code

S45 - CAR ID Code Invalid for Producer Code

S46 - Producer Code

S49 - Vehicle Identification Number

S54 - Terrorism Coverage Code (commercial only)

Records that have already been statistically washed out are ignored by this system. Records that fail the rate edit are flagged in error and must be corrected via offset and reenter records. A pair of records is considered a rate edit washout if all the data elements match exactly except:

Premium Records

Accounting Date

Transaction Type

CAR Id Code

Class Group Code (policy year < 2002)

Risk Type

Annual Statement Line of Business

Producer Code

Vehicle Identification Number

Company Use

Exposure

Premium Dollar1

Premium Dollar2

The exposure and dollar amount fields must be opposite and net to zero. By ignoring the transaction type, CAR Id code, class group code, risk type, annual statement line of business, producer code, and VIN fields, more records are eligible for washout. For instance endorsement records (TX12) will now washout with new/renewal records (TX11). Once a record has been identified as a rate edit washout, it is not included in the rate edit error percentage calculations. The online and hardcopy statistical policy history programs display a rate edit washout switch (which is different than the statistical washout switch) so that companies can identify rate edit washout records.