§ 26-23-325 — Premium rate standards

(a) Premium rates shall not be inadequate, excessive or
unfairly discriminatory.
(b) Rates are excessive if in the aggregate they are
likely to produce a long run profit that is unreasonably high in
relation to the riskiness of the class of business, or if
expenses are unreasonably high in relation to the services
rendered.
(c) Rates are inadequate if they are clearly insufficient,
together with investment income attributable to them, to sustain
projected losses and expenses, or if the continued use of such
rates will have the effect of substantially lessening
competition or the effect of tending to create a monopoly.
(d) Premium rates are unfairly discriminatory if the
premium charged for any classification is not reasonably related
to the services performed or the risks assumed by the insurer,
provided within rate classifications, premiums, to a reasonable
degree, may be less in the case of smaller insurances and the
excess may be charged against larger insurances without
rendering the rate unfairly discriminatory.
(e) In making or reviewing rates, consideration shall be
given to past and prospective loss experience, to exposure to
loss, to underwriting practice and judgment, to past and
prospective expenses including amounts paid to or retained by
title agents, to investment income, to a reasonable margin for
profit and contingencies and to any other relevant factors both
within and outside of this state.
(f) The commissioner may promulgate rules or regulations
setting forth guidelines for evaluation of rates. These
regulations may include consideration of:
(i) Costs of underwriting risks assumed by the
insurer;
(ii) Amounts paid to or retained by title agents;
(iii) Operating expenses of the insurer other than
underwriting and claims expenses;
(iv) Payment of claims and claim related expenses;
(v) Investment income;
(vi) Reasonable profit;
(vii) Premium taxes; and
(viii) Any other factors the commissioner deems
relevant.