Regulation of rates

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  1. (a) Rate filings shall be subject to the following procedures and requirements:

    1. (1) Every insurer shall file with the Insurance Commissioner every manual of classifications, rules, and rates, every rating plan, and every modification of any of the foregoing which it proposes to use;

    2. (2) Every filing shall state the proposed effective date thereof and shall indicate the character and extent of the coverage contemplated. When a filing is not accompanied by the information upon which the insurer supports the filing and the commissioner does not have sufficient information to determine whether the filing meets the requirements of this subchapter, the commissioner may require the insurer to furnish the information upon which it supports the filing. Any filing may be supported by:

      1. (A) The experience or judgment of the insurer or rating organization making the filing;

      2. (B) The experience of other insurers or rating organizations; and

      3. (C) Any other factor which the insurer or rating organization deems relevant; and

    3. (3) A filing and any supporting information shall be open to public inspection after the filing becomes effective.

  2. (b) The rates must meet the following requirements:

    1. (1) They must be established and justified in accordance with generally accepted insurance principles, including, but not limited to, the experience or judgment of the insurer making the rate filing or actuarial computations; and

    2. (2) They may not be excessive, inadequate, or unfairly discriminatory in relation to the benefits offered. Rates are not unfairly discriminatory because they are averaged broadly among persons insured under group, franchise, or blanket policies.

  3. (c) By written order, the commissioner may suspend or modify the requirement of filing for any risk or group or class of risk, the rates for which cannot practically be filed before they are used.


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