For the purposes of this article, unless otherwise stated, the following terms shall have the meanings respectively ascribed to them by this section.
(1) RATE. The unit charge by which the measure of exposure or the amount of insurance specified in a policy of insurance or covered thereunder is multiplied to determine the premium.
(2) PREMIUM. The consideration paid, or to be paid, to an insurer for the issuance and delivery of any binder or policy of insurance.
(3) RATE-MAKING. The examination and analysis of every factor and influence related to, and bearing upon, the hazard and risk made the subject of insurance, the collection and collation of such factors and influences into rating systems and the application of such rating systems to individual risks.
(4) RATING SYSTEM. Every schedule, class, classification, rule, guide, standard, manual, table, rating plan, policy, policy form, or compilation, by whatever name described, containing the rates used by any rating organization or by any insurer or used by any insurer or by any rating organization in determining or ascertaining a rate.
(5) RATING ORGANIZATION. Every person or persons, corporation, partnership, company, society, bureau or association, whether located within or outside this state, engaged in the business of rate-making for two or more insurers.
(6) INSURER. Any person or persons, corporation, association, partnership, reciprocal exchange, or company authorized by the laws of this state to transact the business of insurance in this state.
(7) RISK. Any property, real or personal, described in any policy, exposed to any hazard or peril named in such policy.
(8) UNREASONABLY HIGH RATES. No rate shall be held to be unreasonably high unless:
a. Such rate is unreasonably high for the insurance provided; and
b. A reasonable degree of competition does not exist in the area with respect to the classification to which such rate is applicable.
(9) INADEQUATE RATE. No rate shall be held to be inadequate which upon reasonable assumptions of prospective loss and expense experience will produce an underwriting profit.
Structure Code of Alabama
Chapter 13 - Rates and Rating Organizations.
Article 2 - Fire, etc., and Inland Marine Insurance.
Section 27-13-20 - Definitions.
Section 27-13-21 - Applicability of Article - Generally.
Section 27-13-22 - Applicability of Article - Inland Marine Insurance.
Section 27-13-23 - Applicability of Article - Exemptions.
Section 27-13-25 - Rating Organizations - Provisions for Insurers to Become Members or Subscribers.
Section 27-13-27 - Rate-Making and Making Rating Systems.
Section 27-13-28 - Annual Statistical Reports of Insurers.
Section 27-13-29 - Filing of Rating Systems With Department by Insurers - Requirement.
Section 27-13-31 - Survey of Risks Rated Upon Schedule.
Section 27-13-32 - Hearings on Applications to Reduce Rates.
Section 27-13-33 - Applications for Uniform Percentage Increase or Decrease of Rates by Insurers.
Section 27-13-34 - Approval of Rates and Forms for Insuring Special Types or Classes of Risks.
Section 27-13-37 - Alteration, Supplementation, and Amendment of Rating Systems.
Section 27-13-38 - Prohibition Against Premiums Not in Accord With Approved Rating Systems.
Section 27-13-39 - False or Misleading Information Concerning Rates.
Section 27-13-40 - Suspension of License or Certificate of Authority.
Section 27-13-41 - Order Revoking or Suspending Licenses.
Section 27-13-42 - Notices, Hearings, and Orders by Commissioner.
Section 27-13-43 - Review of Final Orders of Commissioner.