§431:14-103  Making of rates.  (a) 
Rates 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; provided that if the claim does not exceed the
selected deductible amount pursuant to section 386-100, and the employer
reimburses the insurer for the amount, the claims shall not be calculated in
the employer's experience rating or risk category;



(B)  The conflagration and catastrophe hazards,
if any;



(C)  A reasonable margin for underwriting
profit and contingencies;



(D)  Dividends, savings, or unabsorbed premium
deposits allowed or returned by insurers to their policyholders, members, or
subscribers;



(E)  Past and prospective expenses both
country-wide and those specially applicable to this State;



(F)  Investment income from unearned premium
and loss reserve funds; and



(G)  All other relevant factors within and outside
this State.



(3)  In the case of fire insurance rates,
consideration shall be given to the experience of the fire insurance business
during a period of not less than the most recent five-year period for which
that experience is available.



(4)  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.



(5)  Risks may be grouped by classifications for the
establishment of rates and minimum premiums.  Classification rates may be
modified to produce rates for individual risks in accordance with rating plans
that establish standards for measuring variations in hazards or expense
provisions, or both.  These standards may measure any differences among risks that
can be demonstrated to have a probable effect upon losses or expenses.  No risk
classification may be based upon race, creed, national origin, or the religion
of the insured.



(6)  Manual, minimum, class rates, rating schedules,
or rating plans shall be made and adopted, except in the case of:



(A)  Special rates where manual, minimum, class
rates, rating schedules, or rating plans are not applicable; and



(B)  Specifically rated inland marine risks.



(7)  No insurer authorized to do business in this State
shall issue any policy that provides or makes available to any risks preferred
rates based upon any grouping of persons, firms, or corporations by way of
membership, license, franchise, contract, agreement, or any other means, other
than common majority ownership of the risks, or except where:



(A)  A common stock ownership in and management
control of the risks are held by the same person, corporation, or firm;



(B)  Permitted or authorized by filings in
existence as of January 1, 1988, under the casualty rating law and the fire
rating law, as these filings may be amended from time to time;



(C)  Health care providers, as defined in
section 671-1 that could have joined the patients' compensation fund as it
existed in chapter 671, part III, prior to May 31, 1984, joined together with
one or more groups of related or unrelated health care providers;



(D)  Permitted under article 12; or



(E)  Otherwise expressly provided by law.



(b)  In cases of workers' compensation
insurance, all rates made in accordance with this section shall be given due
consideration for good safety records of employers.  By premium reductions,
dividends, or both, insurance carriers shall recognize good safety performance
records of employers in this State.



(c)  Upon the issuance of a certificate by a
certified safety and health professional to an employer that the employer has
an effective safety and health program pursuant to section 396-4.5, the insurer
shall provide the employer with a workers' compensation insurance premium discount
of at least five per cent; provided that the employer shall maintain the
effective safety and health program throughout the policy period.  Standards
for the issuance of certificates shall be included in rules adopted by the
department of labor and industrial relations pursuant to chapter 91.



(d)  For the purpose of ratemaking, all
insurers shall treat a volunteer firefighter the same as a firefighter employed
by a county fire department; provided that the volunteer firefighters are
attached to a station where a firefighter or volunteer firefighter who has been
trained and certified to drive a commercial motor vehicle by either the state
or county government, as appropriate, and who maintains a category (3) license
as defined by section 286-102(b)(3) is on duty at all times or at least four
firefighters or volunteer firefighters who have been trained and certified to
drive a commercial motor vehicle by either the state or county government, as
appropriate, and who maintain a category (3) license as defined by section
286-102(b)(3) are members of the volunteer unit.



(e)  Except to the extent necessary to meet the
provisions of subsection (a)(1), uniformity among insurers in any matters
within the scope of this section is neither required nor prohibited. [L 1987, c
347, pt of §2; am L 1990, c 255, §8; am L 1993, c 269, §2; am L 1995, c 234,
§18; am L 1997, c 18, §1 and c 72, §1]



 



Cross References



 



  Limited liability of volunteer firefighters, see §663-1.55.