This law is about workers' compensation insurance in Missouri. It says that the market for this type of insurance is assumed to be competitive unless a director holds a hearing and decides it is not. If the director decides competition is lacking, that ruling only lasts up to one year. To figure out if enough competition exists, the director looks at things like how many insurance companies are selling this coverage, how much of the market each one controls, how easy it is for new companies to join, and whether insurance companies are making too much money compared to the risks they cover.
287.942. to exist, when — reasonable degree of competition, factors. — 1. A competitive market is presumed to exist unless the , after , that a reasonable degree of competition does not exist in the market and the director s an to that effect. Such an order shall expire no later than one year after issue. In deining whether a reasonable degree of competition exists, the director may consider relevant tests of pertaining to , and . For the purposes of this section, "market" shall mean the statewide and lines of business.
2. In determining whether a reasonable degree of competition exists, the following factors shall be considered:
(1) Generally accepted and relevant tests of competition pertaining to market structure, market performance and market conduct;
(2) as measured by the ;
(3) The number of s transacting in the market;
(4) Insurer market shares and changes in market shares;
(5) Ease of into the market;
(6) Whether long-term profitability for insurers in the market is unreasonably high in relation to the risks being ; and
(7) Whether long-term profitability for insurers in the market is reasonable in relation to industries of business risk.
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Source & history notes
(L. 1993 S.B. 251 § 22) Effective 1-01-94
Related Missouri laws
Penalties for violations, director may impose
RSMo 287.940
Director to monitor degree of competition, purpose
RSMo 287.945
Director may conduct examinations
RSMo 287.937
Insurers to file rate information in competitive market with the director, purpose
RSMo 287.947
Insurer and advisory organization not to make agreement restraining trade
RSMo 287.935
Competitive market, rates not to be excessive, inadequate, unfairly discriminatory
RSMo 287.950
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.