Section 11-402 - Rate making principles generally.
§ 11-402. Rate making principles generally.
(a) In general.- All title insurance rates shall be made in accordance with this section.
(b) Reasonable and adequate rates.- Rates shall be reasonable and adequate for the class of risks to which they apply.
(c) Unfairly discriminatory rates.- Rates may not discriminate unfairly between risks that involve essentially the same hazards and expense elements.
(d) Factors to be considered.- Due consideration shall be given to:
(1) past and prospective loss experience within and outside the State;
(2) a reasonable margin for profit and contingencies;
(3) the cost of participating insurance;
(4) the percentage to be allocated to reserve;
(5) operating expenses; and
(6) all other relevant factors fairly attributable to the business of title insurance.
(e) Classifications of guarantees.-
(1) Guarantees may be grouped by classifications for the establishment of rates and minimum premiums.
(2) A special or unusual guarantee that is more hazardous to the title insurer than ordinary title guarantees because of an alleged irregularity or a difference in interpretation or application of law that might affect marketability of title, may be classified individually and separately according to the circumstances peculiar to each case.
[An. Code 1957, art. 48A, § 242A; 1997, ch. 35, § 2.]