What are the penalties associated with failure to comply with the rate edit program?
For private passenger, a company that does not reduce its error percentage equal to or less than the established rate edit tolerance within the six month timeframe, will be assessed a Statistical Data Quality Penalty of $1 per error record in excess of the tolerance level, with a minimum of $2,000 assessed. An additional penalty of $2,000 per month will be assessed for each subsequent month that the error percentage remains uncorrected and a company remains over the rate edit tolerance. For commercial, a company that does not reduce its error percentage equal to or less than the established rate edit tolerance within the six month timeframe will be assessed a penalty of $2,000. An additional penalty of $2,000 per month will be assessed for each subsequent month that the error percentage remains uncorrected and a company remains over the rate edit tolerance. For both private passenger and commercial business, companies are responsible for assuring that their cumulative percentage of rat
