2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 515F - CASUALTY INSURANCE
515F.4 - RATE STANDARDS.

        515F.4  RATE STANDARDS.
         Rates shall be made in accordance with the following:
         1.  Rates shall not be excessive, inadequate, or unfairly
      discriminatory.
         2.  Due consideration may be given to past and prospective loss
      experience within and outside this state; to the conflagration and
      catastrophe hazards; to a reasonable margin for profit and
      contingencies; to dividends, savings, or unabsorbed premium deposits
      allowed or returned by insurers to their policyholders, members, or
      subscribers; to past and prospective expenses both within and outside
      this state; and to all other relevant 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-year period for which
      experience data is available.
         3.  Risks may be grouped by classifications 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.  Standards may measure any differences
      among risks that can be demonstrated to have a probable effect upon
      losses or expenses.  A risk classification, however, shall not be
      based upon race, creed, national origin, or the religion of the
      insured.
         4.  The expense provisions included in the rates to be used by an
      insurer shall reflect to the extent possible the operating methods of
      the insurer and its anticipated expenses.
         5.  The rates may contain a provision for contingencies and an
      allowance permitting a reasonable profit.  In determining the
      reasonableness of the profit, consideration shall be given to
      investment income attributable to unearned premium and loss reserves.
      

         90 Acts, ch 1234, §48; 2006 Acts, ch 1117, §73
         Referred to in § 515F.5, 515F.15, 515F.23, 515F.24, 515F.25