§ 27-6-4 - Considerations in rate making. - Rhode Island Statutes

SECTION 27-6-4

   § 27-6-4  Considerations in rate making.– Rates shall be made in accordance with the following provisions:

   (1) Manual, minimum, or class rates, rating schedules, orrating plans shall be made and adopted, except in the case of specific inlandmarine rates, on risks specially rated;

   (2) Rates shall not be excessive, inadequate, or unfairlydiscriminatory; and

   (3) Due consideration shall be given to past and prospectiveloss experience within and outside of this state, to the conflagration andcatastrophe hazards, to a reasonable margin for underwriting profit andcontingencies, to dividends savings or unabsorbed premium deposits allowed orreturned by insurers to their policyholders, members, or subscribers, to pastand prospective expenses both country-wide and those specially applicable tothis state, and to all other relevant factors within and outside of this state.In the case of fire insurance rates consideration shall be given to theexperience of the fire insurance business during a period of not less than themost recent five (5) year period for which that experience is available.