Actuarial justification

The demonstration by an insurer that the premiums collected are reasonable, given the benefits provided under the plan or that the distribution of premiums among policyholders are proportional to the distribution of their expected costs, subject to limitations of state and federal law. Minn. Stat. 62A.02 requires companies to file rates for individual health insurance products and provide certain actuarial justification. The actuarial justification is reviewed before rates are approved.