PART II. RATES AND ADMINISTRATION

 

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

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

(2)  Due consideration shall be given to:

(A)  Past and prospective loss experiencewithin and outside this State, catastrophe hazards, if any, reasonable marginfor profit, and contingencies, dividends, savings, or unabsorbed premiumdeposits allowed or returned by insurers to their policyholders, members orsubscribers;

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

(C)  Investment income from reserves, unearnedinsurance premiums, and other unearned proceeds received on account ofmotorcycle and motor scooter insurance sold, and all other factors that may bedeemed 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 therates for use by any insurer or group of insurers may differ from those ofother insurers or groups of insurers to reflect the requirements of theoperating methods of any insurer or group with respect to any class ofinsurance, or with respect to any subdivision or combination thereof for whichsubdivision or combination separate expense provisions are applicable; and

(4)  Risks may be grouped by classifications for theestablishing of rates and minimum premiums.  Classification rates may bemodified to produce rates for individual risks in accordance with rating planswhich establish standards for measuring variations in hazards or expenseprovisions, or both.  The standards may measure any differences among risksthat can be demonstrated to have a probable effect upon losses or expenses.

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

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

 

Revision Note

 

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

 

Case Notes

 

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