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 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 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
Related Missouri laws
Competitive market, rates not to be excessive, inadequate, unfairly discriminatory
RSMo 287.950
Insurers to adhere to uniform classification system, plan
RSMo 287.955
Insurers to file rate information in competitive market with the director, purpose
RSMo 287.947
Experience rating plan, contents
RSMo 287.957
Director to monitor degree of competition, purpose
RSMo 287.945
Disapproval of rate, when, how
RSMo 287.960
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.