Subpart C. Rates

 

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

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

(2)  Consideration shall be given to the following:

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

(B)  Contingencies in the administration ofmotor vehicle insurance sold;

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

(D)  Income from investments of premiums andother proceeds received on account of joint underwriting plan motor vehicleinsurance sold; and

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

(3)  The commissioner may:

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

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

(C)  Modify classification rates to producerates in accordance with rating plans which establish standards for measuringvariations in hazards or expense provisions, or both.  Such standards maymeasure any differences among risks including vehicles, occupations, pasttraffic convictions, and involvement in past accidents, provided they areestablished to have a demonstrable effect upon losses or expense; and

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