PART II. 
RATES AND ADMINISTRATION



 



§431:10G-201  Making of motorcycle and motor
scooter insurance rates.  (a)  All premium rates for motorcycle and motor
scooter insurance shall be made in accordance with the following provisions:



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



(2)  Due consideration shall be given to:



(A)  Past and prospective loss experience
within and outside this State, catastrophe hazards, if any, reasonable margin
for profit, and contingencies, dividends, savings, or unabsorbed premium
deposits allowed or returned by insurers to their policyholders, members or
subscribers;



(B)  Past and prospective expenses both
country-wide and those specially applicable to this State in the sale and
administration of motorcycles and motor scooters insurance; and



(C)  Investment income from reserves, unearned
insurance premiums, and other unearned proceeds received on account of
motorcycle and motor scooter insurance sold, and all other factors that may be
deemed relevant, if they are established to have a probable effect upon losses,
expense, or rates, such as but not limited to types of vehicles, occupations,
and involvement in past accidents;



(3)  The systems of expense provisions included in the
rates for use by any insurer or group of insurers may differ from those of
other insurers or groups of insurers to reflect the requirements of the
operating methods of any insurer or group with respect to any class of
insurance, or with respect to any subdivision or combination thereof for which
subdivision or combination separate expense provisions are applicable; and



(4)  Risks may be grouped by classifications for the
establishing 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.  The standards may measure any differences among risks
that can be demonstrated to have a probable effect upon losses or expenses.



(b)  Except to the extent necessary to meet the
provisions of subsection (a)(4), uniformity among insurers in any matters
within the scope of this section is neither required nor prohibited.



(c)  After June 7, 1989, each insurer of a
motorcycle or motor scooter shall provide a fifteen per cent reduction off
premium charges each insurer assesses for each new and renewal policy for
liability coverage issued pursuant to this article if the applicant has
successfully completed a motorcycle education course approved by the department
of transportation. [L 1989, c 208, pt of §1]



 



Revision Note



 



  "June 7, 1989" substituted for "the effective
date of this section".



 



Case Notes



 



  Discussed:  78 H. 325, 893 P.2d 176.