§ 58-40-20. Rate standards.
§58‑40‑20. Rate standards.
(a) In order to servethe public interest, rates shall not be excessive, inadequate, or unfairlydiscriminatory.
(b), (c) Repealed by SessionLaws 1985 (Reg. Sess., 1986), c. 1027, s. 10.
(d) No rate isinadequate unless the rate is unreasonably low for the insurance provided andthe use or continued use of the rate by the insurer has had or will have theeffect of:
(1) Endangering thesolvency of the insurer; or
(2) Destroyingcompetition; or
(3) Creating a monopoly;or
(4) Violating actuarialprinciples, practices, or soundness.
(e) A rate is notunfairly discriminatory in relation to another in the same class if it reflectsequitably the differences in expected losses and expenses. Rates are notunfairly discriminatory because different premiums result for policyholderswith like loss exposures but different expense factors, or like expense factorsbut different loss exposures, as long as the rates reflect the differences withreasonable accuracy. Rates are not unfairly discriminatory if they are averagedbroadly among persons insured under a group, franchise, or blanket policy. (1977,c. 828, s. 2; 1985 (Reg. Sess., 1986), c. 1027, ss. 9.1, 10, 11.)