Every rating organization and every insurer which makes its own rates shall make rates that are not unreasonably high or inadequate for the safety and soundness of the insurer and which do not unfairly discriminate between risks in this state and shall, in rate-making and in making rating plans:
(1) Adopt basis classifications, which shall be used as the basis of all manual, minimum, class, schedule, or experience rates;
(2) Give consideration to past experience within the state and without the state, when necessary, and due consideration may be given to prospective loss experience within the state and without the state, when necessary, over such period of years as appears to be fairly representative of the frequency of the occurrence of the particular risk; and
(3) Give consideration to all factors reasonably related to the kind of insurance involved, including a reasonable profit for the insurer and, in the case of participating insurers, to policyholders' dividends.
The systems of expense provisions included in the rates for use by insurers or groups of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of any such insurer or group with respect to any kind of insurance, or any subdivision or combination thereof, for which the commissioner approves the application of separate expense provisions.
Structure Code of Alabama
Chapter 13 - Rates and Rating Organizations.
Article 3 - Casualty and Surety Insurance.
Section 27-13-60 - Definitions.
Section 27-13-61 - Applicability of Article.
Section 27-13-63 - Rating Organizations - Provisions for Insurers to Become Members or Subscribers.
Section 27-13-65 - Rate-Making and Making Rating Plans.
Section 27-13-67 - Filing of Rating Plans With Department by Insurers - Requirement.
Section 27-13-69 - Appeals From Decisions of Rating Organizations.
Section 27-13-70 - Furnishing Information as to Rates.
Section 27-13-71 - Hearings on Applications to Reduce Rates.
Section 27-13-72 - Application for Uniform Percentage Increase or Decrease in Rates by Insurers.
Section 27-13-73 - Factors to Be Considered in Determining Reasonableness, etc., of Rates.
Section 27-13-75 - Alteration, Supplementation, and Amendment of Rating Plans.
Section 27-13-76 - Prohibition Against Premiums Not in Accord With Approved Rating Systems.
Section 27-13-77 - False or Misleading Information Concerning Rates.
Section 27-13-78 - Suspension of License or Certificate of Authority.
Section 27-13-79 - Order Revoking or Suspending License.
Section 27-13-80 - Notices, Hearings, and Orders by Commissioner.
Section 27-13-81 - Review of Final Orders of Commissioner.