Subpart C. 
Rates



 



§431:10C-409  Establishment and criteria. 
The commissioner shall, after consultation with the board, establish and
promulgate the rating rules, classification standards and rules, rates, rating
plans, territories, and policy forms for use in the provision of all motor
vehicle insurance issued under the joint underwriting plan, in accordance with
the following provisions:



(1)  Rates shall not be excessive, inadequate or
unfairly discriminatory.



(2)  Consideration shall be given to the following:



(A)  The plan's past and prospective loss
experience within the State;



(B)  Contingencies in the administration of
motor vehicle insurance sold;



(C)  Past and prospective expenses in the sale
and administration of motor vehicle insurance;



(D)  Income from investments of premiums and
other proceeds received on account of joint underwriting plan motor vehicle
insurance sold; and



(E)  All other factors demonstrated to be
relevant by a current actuarially sound study of the definable risks involved.



(3)  The commissioner may:



(A)  Establish rating territories and group
risks by classifications for the establishing of rates and minimum premiums;



(B)  Provide for, by regulation, a uniform
classification of risks and rating territories for the various coverages;



(C)  Modify classification rates to produce
rates in accordance with rating plans which establish standards for measuring
variations in hazards or expense provisions, or both.  Such standards may
measure any differences among risks including vehicles, occupations, past
traffic convictions, and involvement in past accidents, provided they are
established to have a demonstrable effect upon losses or expense; and



(D)  Ensure that no standard or rating plan
shall be based, in whole or in part, directly or indirectly, upon a person's
race, creed, ethnic extraction, age, sex, length of driving experience, credit
bureau rating, marital status, or physical handicap. [L 1987, c 347, pt of §2;
am L Sp 1993, c 4, §8]