287.942. Competitive market presumed to exist, when--reasonable degree of competition, factors. - Missouri Statutes

Competitive market presumed to exist, when--reasonable degree ofcompetition, factors.

287.942. 1. A competitive market is presumed to existunless the director, after hearing, determines that a reasonabledegree of competition does not exist in the market and thedirector issues an order to that effect. Such an order shallexpire no later than one year after issue. In determiningwhether a reasonable degree of competition exists, the directormay consider relevant tests of workable competition pertaining tomarket structure, market performance and market conduct. For thepurposes of this section, "market" shall mean the statewideworkers' compensation and employers' liability lines of business.

2. In determining whether a reasonable degree ofcompetition exists, the following factors shall be considered:

(1) Generally accepted and relevant tests of competitionpertaining to market structure, market performance and marketconduct;

(2) Market concentration as measured by theHerfindahl-Herschman Index;

(3) The number of insurers transacting workers'compensation insurance in the market;

(4) Insurer market shares and changes in market shares;

(5) Ease of entry into the market;

(6) Whether long-term profitability for insurers in themarket is unreasonably high in relation to the risks beinginsured; and

(7) Whether long-term profitability for insurers in themarket is reasonable in relation to industries of comparablebusiness risk.

(L. 1993 S.B. 251 § 22)

Effective 1-1-94