Bill Text: IN HB1385 | 2011 | Regular Session | Enrolled
Bill Title: Discrimination in premium rates.
Sponsorship: Partisan Bill (Republican 1)
Status: (Passed) 2011-05-16 - Effective 07/01/2011 [HB1385 Detail]
Download: Indiana-2011-HB1385-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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AN ACT to amend the Indiana Code concerning insurance.
(1) Due consideration shall be given to the past and prospective loss experience within and outside this state, to conflagration and catastrophe hazards, if any, to a reasonable margin for underwriting profit and contingencies, to dividends or savings allowed or returned by insurers to their policyholders or members, to past and prospective expenses both countrywide and those specifically applicable to this state, to all other relevant factors, including trend factors, within and outside this state, and in the case of fire insurance rates, to the underwriting experience of the fire insurance business during a period of not less than the most recent five (5) year period for which such experience is available and relevant.
(2) Risks may be grouped by classifications, by rating schedules, or by any other reasonable methods, for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. Such standards may measure any difference among risks that can be demonstrated to have a
probable effect upon losses or expenses.
(3) The systems of expense provisions included in the rates for
use by any insurer or group of insurers may differ from those of
other insurers or groups of insurers to reflect the requirements of
the operating methods of any such insurer or group with respect
to any kind of insurance, or with respect to any subdivision or
combination thereof for which subdivision or combination
separate expense provisions are applicable.
(4) Rates shall not be excessive, inadequate, or unfairly
discriminatory.
No rate shall be held to be excessive unless such rate is unreasonably
high for the insurance coverage provided and a reasonable degree of
competition does not exist in the area with respect to the classification
to which such rate is applicable. No rate shall be held to be inadequate
unless such rate is unreasonably low for the insurance coverage
provided and is insufficient to sustain projected losses and expenses,
or unless such rate is unreasonably low for the insurance coverage
provided and the use of such rate has, or if continued, will have, the
effect of destroying competition or creating a monopoly. A rating
difference that results from application of a rating plan that is
intended to control rate changes applicable to a current
policyholder upon renewal of the policy or the transfer of a policy
in force among insurers is not unfairly discriminatory, is not an
unfair or deceptive act or practice in the business of insurance
under IC 27-4-1-4, and is not a violation of IC 27-1-20-30.
(b) Except to the extent necessary to meet the provisions of
subsection (a)(4), uniformity among insurers in any matters within the
scope of this section is neither required nor prohibited.
(c) For the purpose of making rates upon automobiles and other
motor vehicles under the provisions of this chapter, the terms "fleet" or
"fleet policy" shall mean an insurance risk of five (5) or more
automobiles and other vehicles of any kind, all owned by one (1)
insured and all under one (1) direct operating management; provided,
that automobiles and other motor vehicles owned by employees may
not be included or insured under a fleet policy of an employer under
any circumstances.
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