Rate making principles generally

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    (a)    All title insurance rates shall be made in accordance with this section.

    (b)    Rates shall be reasonable and adequate for the class of risks to which they apply.

    (c)    Rates may not discriminate unfairly between risks that involve essentially the same hazards and expense elements.

    (d)    Due consideration shall be given to:

        (1)    past and prospective loss experience within and outside the State;

        (2)    a reasonable margin for profit and contingencies;

        (3)    the cost of participating insurance;

        (4)    the percentage to be allocated to reserve;

        (5)    operating expenses; and

        (6)    all other relevant factors fairly attributable to the business of title insurance.

    (e)    (1)    Guarantees may be grouped by classifications for the establishment of rates and minimum premiums.

        (2)    A special or unusual guarantee that is more hazardous to the title insurer than ordinary title guarantees because of an alleged irregularity or a difference in interpretation or application of law that might affect marketability of title, may be classified individually and separately according to the circumstances peculiar to each case.


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