Subpart C.  Rates


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

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

     (2)  Consideration shall be given to the following:

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

          (B)  Contingencies in the administration of motor vehicle insurance sold;

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

          (D)  Income from investments of premiums and other proceeds received on account of joint underwriting plan motor vehicle insurance sold; and

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

     (3)  The commissioner may:

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

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

          (C)  Modify classification rates to produce rates in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both.  Such standards may measure any differences among risks including vehicles, occupations, past traffic convictions, and involvement in past accidents, provided they are established to have a demonstrable effect upon losses or expense; and

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