In the past, I’ve provided tips for preparing a rate/rule or form filing that has a better chance for obtaining quicker approval once a regulator has reviewed it. And, another one came to mind that I may not have mentioned or expanded upon.
Acronyms in our society today abound. That was true even before instant messaging or text messaging became commonplace. And, for those who don’t routinely use such methods of communication, the plethora of acronyms and abbreviations can be down right annoying, particularly when their meanings aren’t common knowledge, let alone common sense. (OMG, LOL!)
There are many commonly used abbreviations used in the insurance industry. For example, IBNR refers to claims that have been incurred but not yet reported to the insurer, LAE means loss adjustment expense, and UM/UIM pertains to automobile coverage for uninsured/underinsured motorists. And, the list goes on and on.
In addition to those acronyms that are second nature for those of us in the industry who use them or come across them routinely, there are some that are specific to our individual companies. And those can be confusing to a regulator even if they are somewhat familiar with, or often review, a specific company’s filings. If so, using such abbreviations in a filing without including an explanation may result in an objection letter, if not actually disapproving the filing, then requesting clarification.
On a related note, it’s not uncommon for different companies to use the same or similar nomenclature to mean different things. That is, one company’s preferred rating tier might be called the “Premier Program” while another might use that term to refer to their standard tier. And, of course, abbreviating terms without including a key or explanation only adds to confusion for the person who’s reviewing a filing.
In other words, “brevity is not always the soul of wit” in spite of what we’ve been led to believe.
Editor’s recommendation: Turn to AuthenticWeb for State Filing for additional filing information.
