§ 27-44-7 - Disapproval of rates.
SECTION 27-44-7
§ 27-44-7 Disapproval of rates. – (a) Timing of disapproval. A rate in a competitive market may bedisapproved any time prior to the proposed effective date or, if supportinginformation is required pursuant to § 27-44-6(a), at any time withinthirty (30) days after receipt of the information. An existing rate may bedisapproved only after a hearing to determine continued compliance with therate standards of this chapter.
(b) Basis of disapproval. The director shalldisapprove a rate for use in a competitive market if the director finds thatthe rate is excessive, inadequate, or unfairly discriminatory, or violates thestandards of § 27-44-5. The director's order shall specify in whatrespects the rate fails to meet the rate standards.
(c) Disapproval procedures; order. If the directordetermines that a reasonable degree of competition does not exist in a marketin accordance with § 27-44-4, he or she may review and suspend existingrates in accordance with the procedures established in the other provisions oflaw that govern rates, including, but not limited to, chapters 6 and 9 of thistitle;
(2) If the director disapproves an existing rate in acompetitive market, the director shall issue an order specifying in whatrespects it fails to meet the rate standards and stating when, within areasonable period after this, the rate shall be discontinued for any policyissued or renewed after a date specified in the order. The order shall beissued within thirty (30) days after the close of the hearing or within anyreasonable time extension the director may fix. The order may include aprovision for premium adjustment for the period after the effective date of theorder for policies in effect on that date.
(d) Review of ratings. Every insurer or ratingorganization shall provide within this state reasonable means by which anyperson aggrieved by the application of its rating system may upon writtenrequest review the manner in which the rating system has been applied inconnection with the insurance afforded or offered. If the insurer or ratingorganization fails to grant or reject the request within thirty (30) days, theapplicant may proceed in the same manner as if the application had beenrejected. Any party affected by the action of an insurer or rating organizationon the request may, within thirty (30) days after written notice of the action,appeal to the director, who, after a hearing held upon not less than ten (10)days written notice to the appellant and to the insurer or rate serviceorganization, may affirm, modify, or reverse the action.