US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 14
                           PROPERTY INSURANCE RATES
    41-1437.  MAKING AND USE OF RATES. (1) As to all rates which are subject
to this chapter, due consideration shall be given to past and prospective loss
experience within and outside this state, to the conflagration and catastrophe
hazards, to a reasonable margin for underwriting profit and contingencies, to
dividends, savings or unabsorbed premium deposits allowed or returned by
insurers to their policy holders, members or subscribers, to past and
prospective expenses both countrywide and those specifically applicable to
this state, and to all other relevant factors, including judgment factors,
within and outside this state; and in the case of fire insurance rates,
consideration shall be given to the experience of the fire insurance business
during a period of not less than the most recent five (5) year period for
which such experience is available.
    (2)  The systems of expense provisions included in the rates for use by an
insurer or group of insurers may differ from those of other insurers or groups
of insurers to reflect the requirements of the operating methods of any such
insurer or group with respect to any kind of insurance, or with respect to any
subdivision or combination thereof for which subdivision or combination
separate expense provisions are applicable.
    (3)  Risks may be grouped by classification for the establishment of rates
and minimum premiums. Classification rates may be modified to produce rates
for individual risks in accordance with rating plans which establish standards
for measuring variations in hazards or expense provisions, or both. Such
standards may measure any difference among risks that can be demonstrated to
have a probable effect upon losses or expenses. Such classifications and
modifications shall apply to all risks under the same or substantially the
same circumstances or conditions.