287.952. Rate standards in noncompetitive market, factors. - Missouri Statutes

Rate standards in noncompetitive market, factors.

287.952. In determining whether rates comply with theexcessiveness standard in a noncompetitive market, the inadequacystandard and the unfair discrimination standard, the followingcriteria shall apply:

(1) Due consideration may be given to past and prospectiveloss and expense experience within and outside of this state, tocatastrophe hazards and contingencies, to events or trends withinand outside of this state, to loadings for leveling premium ratesover time, for dividends or savings to be allowed or returned byinsurers to their policyholders, members or subscribers, and toall other relevant factors, including judgment;

(2) The expense provisions included in the rates to be usedby an insurer shall reflect the operating methods of the insurerand, so far as it is credible, its own actual and anticipatedexpense experience;

(3) The rates may contain provisions for contingencies andan allowance permitting a reasonable profit. In determining thereasonableness of profit, consideration should be given to allinvestment income attributable to premiums and the reservesassociated with those premiums.

(L. 1993 S.B. 251 § 26)

Effective 1-1-94