Disability income insurance provides partial wage replacement in the event the policyholder has a serious illness or injury that prevents them from working.  Employers may provide disability income insurance as a benefit to their employees by taking out a group disability income insurance policy for all eligible employees.  Experience-rating is a method that insurance companies use to calculate premiums for an employer group based on that group's experience, including their claim history, payroll information, and demographics. 

Insurers are required to submit rate filings to the Office of the Insurance Commissioner (Commissioner) for approval before use.  Insurers providing disability insurance are required to file their manual of classification, manual of rules and rates, and any modifications.  On March 8, 2023, the Commissioner issued a technical assistance advisory to disability insurers explaining that any disability product rated on the basis of experience of a specific group must file a single case rate filing for each experience-rated group.

Experience-rated group disability income insurers must include in their insurance filings their experience rating formulas, including all rating factors and credibility formulas as part of the rate manual.  The filings must be detailed enough to confirm that a group is fully or partially credible and to allow the Commissioner to replicate the premium rates for the experience-rated group if given the group's experience and demographics.