Insurer and advisory organization not to make agreement restraining trade
Insurance companies and groups that help set insurance rates cannot make deals with each other that would unfairly limit competition. Insurance companies cannot agree with each other to use the same rates or pricing rules, except for one specific required rating plan. Just because two insurance companies happen to use the same rates or rules does not automatically mean they made an illegal agreement. Insurance companies that are owned or controlled by the same parent company are allowed to work together as if they were one company.
287.935. and not to make agreement — insurer must use — exceptions. — 1. No insurer or advisory organization shall make any arrangement with any other insurer, advisory organization or other person which has the purpose or effect or restraining trade unreasonably or of substantially lessening competition in the business of insurance.
2. No insurer shall agree with any other insurer or with the advisory organization to adhere to or use any rate, , other than the uniform experience rating plan, or rating except as needed to comply with the requirements of section 287.955.
3. The fact that two or more insurers, whether or not members or of the advisory organization, use consistently or intermittently, the same rates, rating plans, rating schedules, rating rules, policy forms, rate classifications, , surveys or inspections or similar materials is not sufficient in itself to support a finding that an agreement exists.
4. Two or more insurers which have a common ownership or operate in this state under may act in concert between or among themselves with respect to any matters pertaining to those activities in sections 287.930 to 287.975 as if they constituted a single insurer.
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Source & history notes
(L. 1993 S.B. 251 § 19) Effective 1-01-94
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