What types of information must an insurer include in a multivariate analysis?
(1) A multivariate statistical analysis must evaluate the rating factors listed below (if applicable to the rating plan, and to the extent that data are credible): (a) For homeowners, dwelling property, earthquake, and personal inland marine insurance: (i) Insurance score; (ii) Territory and/or geographic area; (iii) Protection class; (iv) Amount of insurance; (v) Surcharges or discounts based on loss history; (vi) Number of family units; and (vii) Policy form relativity. (b) For private passenger automobile, personal liability and theft, and mechanical breakdown insurance: (i) Insurance score; (ii) Driver class; (iii) Multicar discount; (iv) Territory and/or geographic area; (v) Vehicle use; (vi) Rating factors related to driving record; and (vii) Surcharges or discounts based on loss history. (2) An insurer must provide a general description of the model used to perform the multivariate analysis, including the: (a) Formulas the model uses; (b) Rating factors that are included in the
