§ 515A.3 — Making of rates

Iowa § 515A.3

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 515A: WORKERS’ COMPENSATION LIABILITY INSURANCE RATES

Text

1. Rates shall be made in accordance with the following provisions:
a. Rates shall not be excessive, inadequate, or unfairly discriminatory.
b. Due consideration shall be given to past and prospective loss experience within and
outside this state; to catastrophe hazards; to a reasonable margin for underwriting profit and
contingencies; to dividends, savings, or unabsorbed premium deposits allowed or returned
by insurers to their policyholders, members, or subscribers; to past and prospective expenses
§515A.3, WORKERS’ COMPENSATION LIABILITY INSURANCE RATES 2
both countrywide and those specially applicable to this state; and to all other relevant factors
within and outside this state.
c. 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 group of insurers to reflect the
requirements of the operating methods of any such insurer or group of insurers 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.
d. Risks may be grouped by classifications 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 differences among risks
that can be demonstrated to have a probable effect upon losses or expenses.
2. Except to the extent necessary to meet the provisions of paragraph “a” of subsection 1
of this section, uniformity among insurers in any matters within the scope of this section is
neither required nor prohibited.

Legislative History

[C50, 54, 58, 62, §515A.3, 515B.3; C66, 71, 73, 75, 77, 79, 81, §515A.3]