(a) For a notice of Type 1-C rate adjustment, unused rate adjustment authority for a class is calculated in two steps. First, the difference between the annual limitation calculated pursuant to Sec. 3010.21 or Sec. 3010.22 for the most recent notice of Type 1-A or Type 1-B rate adjustment and the percentage change in rates for the class calculated pursuant to Sec. 3010.23(b)(2) is calculated. Second, the unused rate adjustment authority generated in the most recent Type 1-A or Type 1-B rate adjustment is subtracted from that result.
(b) Unused rate adjustment authority generated under paragraph (a) of this section lapses 5 years after the date of filing of the most recent notice of Type 1-A or Type 1-B rate adjustment.
(c) Unused rate adjustment authority generated under paragraph (a) of this section for a class shall be added to the unused rate adjustment authority generated in the most recent notice of Type 1-A rate adjustment on the schedule maintained under Sec. 3010.26(f). For purposes of Sec. 3010.28, the unused rate adjustment authority generated under paragraph (a) of this section for a class shall be deemed to have been added to the schedule maintained under Sec. 3010.26(f) on the same date as the most recent notice of Type 1-A or Type 1-B rate adjustment.
(d) Unused rate adjustment authority generated under paragraph (a) of this section shall be subject to the limitation under Sec. 3010.29, regardless of whether it is used alone or in combination with other existing unused rate adjustment authority. [79 FR 33834, June 12, 2014]