Code of Federal Regulations Title 42. Public Health § 42.403.251 Loss ratio date and time frame provisions

(a) Initial calculation date means the first date of the period that the insuring organization uses to calculate the policy's expected loss ratio.

(b) Loss ratio calculation period means the period beginning with the initial calculation date and ending with the last day of the period for which the insuring organization calculates the policy's scale of premiums.

(c) To calculate “present values”, the insuring organization may ignore discounting (an actuarial procedure that provides for the impact of a variety of factors, such as lapse of policies) for loss ratio calculation periods not exceeding 12 months.