State Codes and Statutes
Statutes > Texas > Insurance-code > Title-5-protection-of-consumer-interests > Chapter-560-prohibited-rates
INSURANCE CODE
TITLE 5. PROTECTION OF CONSUMER INTERESTS
SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES
CHAPTER 560. PROHIBITED RATES
Sec. 560.001. DEFINITION OF INSURER. In this chapter, "insurer"
means an insurance company, reciprocal or interinsurance
exchange, mutual insurance company, farm mutual insurance
company, capital stock insurance company, county mutual insurance
company, Lloyd's plan, surplus lines insurer, or other legal
entity engaged in the business of insurance in this state. The
term includes:
(1) an affiliate described by Section 823.003(a);
(2) the Texas Windstorm Insurance Association established under
Chapter 2210;
(3) the FAIR Plan Association established under Chapter 2211;
and
(4) the Texas Automobile Insurance Plan Association established
under Chapter 2151.
Added by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 1D.002, eff. April 1, 2009.
Sec. 560.002. USE OF CERTAIN RATES PROHIBITED; RATE
REQUIREMENTS. (a) An insurer may not use a rate that violates
this chapter.
(b) A rate used under this code:
(1) must be just, fair, reasonable, and adequate; and
(2) may not be:
(A) confiscatory;
(B) excessive for the risks to which the rate applies; or
(C) unfairly discriminatory.
(c) For purposes of this section, a rate is:
(1) inadequate if the rate is insufficient to sustain projected
losses and expenses to which the rate applies, and continued use
of the rate:
(A) endangers the solvency of an insurer using the rate; or
(B) has the effect of substantially lessening competition or
creating a monopoly in any market;
(2) excessive if the rate is likely to produce a long-term
profit that is unreasonably high in relation to the insurance
coverage provided; or
(3) unfairly discriminatory if the rate:
(A) is not based on sound actuarial principles;
(B) does not bear a reasonable relationship to the expected loss
and expense experience among risks; or
(C) is based wholly or partly on the race, creed, color,
ethnicity, or national origin of the policyholder or an insured.
Added by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 1D.002, eff. April 1, 2009.
State Codes and Statutes
Statutes > Texas > Insurance-code > Title-5-protection-of-consumer-interests > Chapter-560-prohibited-rates
INSURANCE CODE
TITLE 5. PROTECTION OF CONSUMER INTERESTS
SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES
CHAPTER 560. PROHIBITED RATES
Sec. 560.001. DEFINITION OF INSURER. In this chapter, "insurer"
means an insurance company, reciprocal or interinsurance
exchange, mutual insurance company, farm mutual insurance
company, capital stock insurance company, county mutual insurance
company, Lloyd's plan, surplus lines insurer, or other legal
entity engaged in the business of insurance in this state. The
term includes:
(1) an affiliate described by Section 823.003(a);
(2) the Texas Windstorm Insurance Association established under
Chapter 2210;
(3) the FAIR Plan Association established under Chapter 2211;
and
(4) the Texas Automobile Insurance Plan Association established
under Chapter 2151.
Added by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 1D.002, eff. April 1, 2009.
Sec. 560.002. USE OF CERTAIN RATES PROHIBITED; RATE
REQUIREMENTS. (a) An insurer may not use a rate that violates
this chapter.
(b) A rate used under this code:
(1) must be just, fair, reasonable, and adequate; and
(2) may not be:
(A) confiscatory;
(B) excessive for the risks to which the rate applies; or
(C) unfairly discriminatory.
(c) For purposes of this section, a rate is:
(1) inadequate if the rate is insufficient to sustain projected
losses and expenses to which the rate applies, and continued use
of the rate:
(A) endangers the solvency of an insurer using the rate; or
(B) has the effect of substantially lessening competition or
creating a monopoly in any market;
(2) excessive if the rate is likely to produce a long-term
profit that is unreasonably high in relation to the insurance
coverage provided; or
(3) unfairly discriminatory if the rate:
(A) is not based on sound actuarial principles;
(B) does not bear a reasonable relationship to the expected loss
and expense experience among risks; or
(C) is based wholly or partly on the race, creed, color,
ethnicity, or national origin of the policyholder or an insured.
Added by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 1D.002, eff. April 1, 2009.
State Codes and Statutes
Statutes >
Texas >
Insurance-code >
Title-5-protection-of-consumer-interests >
Chapter-560-prohibited-rates INSURANCE CODE
TITLE 5. PROTECTION OF CONSUMER INTERESTS
SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES
CHAPTER 560. PROHIBITED RATES
Sec. 560.001. DEFINITION OF INSURER. In this chapter, "insurer"
means an insurance company, reciprocal or interinsurance
exchange, mutual insurance company, farm mutual insurance
company, capital stock insurance company, county mutual insurance
company, Lloyd's plan, surplus lines insurer, or other legal
entity engaged in the business of insurance in this state. The
term includes:
(1) an affiliate described by Section 823.003(a);
(2) the Texas Windstorm Insurance Association established under
Chapter 2210;
(3) the FAIR Plan Association established under Chapter 2211;
and
(4) the Texas Automobile Insurance Plan Association established
under Chapter 2151.
Added by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 1D.002, eff. April 1, 2009.
Sec. 560.002. USE OF CERTAIN RATES PROHIBITED; RATE
REQUIREMENTS. (a) An insurer may not use a rate that violates
this chapter.
(b) A rate used under this code:
(1) must be just, fair, reasonable, and adequate; and
(2) may not be:
(A) confiscatory;
(B) excessive for the risks to which the rate applies; or
(C) unfairly discriminatory.
(c) For purposes of this section, a rate is:
(1) inadequate if the rate is insufficient to sustain projected
losses and expenses to which the rate applies, and continued use
of the rate:
(A) endangers the solvency of an insurer using the rate; or
(B) has the effect of substantially lessening competition or
creating a monopoly in any market;
(2) excessive if the rate is likely to produce a long-term
profit that is unreasonably high in relation to the insurance
coverage provided; or
(3) unfairly discriminatory if the rate:
(A) is not based on sound actuarial principles;
(B) does not bear a reasonable relationship to the expected loss
and expense experience among risks; or
(C) is based wholly or partly on the race, creed, color,
ethnicity, or national origin of the policyholder or an insured.
Added by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 1D.002, eff. April 1, 2009.
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