Rate standards in noncompetitive market, factors
This law lists the rules used to check if workers' compensation insurance rates are fair in a market where there is not much competition. Rate-checkers look at things like past losses, future risks, disasters, and the insurer's own costs. Rates are allowed to include a reasonable profit, but any money the insurer makes from investments also gets considered when deciding if that profit is fair.
287.952. Rate standards in , factors. — In determining whether rates comply with the in a noncompetitive market, the and the , the following criteria shall apply:
(1) Due may be given to past and loss and expense within and outside of this state, to and , to events or trends within and outside of this state, to for leveling rates over time, for dividends or savings to be allowed or returned by s to their , members or , and to all other relevant factors, including ;
(2) The expense included in the rates to be used by an insurer shall reflect the operating methods of the insurer and, so far as it is , its own actual and anticipated expense experience;
(3) The rates may contain provisions for contingencies and an allowance permitting a reasonable profit. In determining the reasonableness of profit, consideration should be given to all attributable to and the associated with those premiums.
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Source & history notes
(L. 1993 S.B. 251 § 26) Effective 1-01-94
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