Rates must not be excessive, inadequate, or unfairly discriminatory, and the commissioner generally may not approve or regulate rates except as this Subpart allows.
§1454. Rating standards and methods A. Rates shall not be excessive, inadequate, or unfairly discriminatory. Risks may be classified using any criteria except that no risk shall be classified on the basis of race, color, creed, or national origin. B. In determining whether rates are excessive, inadequate, or unfairly discriminatory, consideration may be given to the following items: (1) Basic rate factors. Due consideration shall be given to past and prospective loss and expense experience within and outside the state, catastrophe hazards and contingencies, events, or trends within and outside the state, dividends or savings to policyholders, members, or subscribers, and all other relevant factors and judgments. Fines and penalties against an insurer, whether levied by a court or regulatory body, shall not be used by the insurer or considered in any manner in the loss or expense experience for the purpose of setting rates or making rate filings. (2) Classification. Risks may be grouped by classification for the establishment of rates and minimum premiums. Classification rates may be modified for individual risks in accordance with rating plans or schedules which establish standards for measuring probable variations in hazards or expenses, or both. (3) Expenses. The expense provisions shall reflect the operating methods of the insurer, the past expense experience of the insurer, and anticipated future expenses. However, an insurer shall not consider its institutional advertising expenses for the purpose of setting rates. (4) Contingencies and profits. The rates shall contain a provision for contingencies and a provision for a reasonable underwriting profit and shall reflect investment income directly attributable to unearned premium and loss reserves. (5) Other relevant factors. Any other factors available at the time of the rate filing, including but not limited to rates computed in accordance with accepted actuarial standards. C. Except as provided by this Subpart, the commissioner shall not approve or otherwise regulate rates. Acts 2007, No. 459, §1, eff. Jan. 1, 2008; Acts 2008, No. 402, §1, eff. June 21, 2008; Redesignated from R.S. 22:1402.2 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2025, No. 11, §1, Acts 2025, No. 85, §1, eff. Jan 1, 2026. NOTE: Former R.S. 22:1454 redesignated as R.S. 22:22 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.