Indiana Code
Chapter 22. Regulation of Insurance Rates
27-1-22-3. Guidelines for Establishing Rates; Uniformity; Fleet or Fleet Policy

Sec. 3. (a) Rates shall be made in accordance with the following provisions:
(1) Due consideration shall be given to the past and prospective loss experience within and outside this state, to conflagration and catastrophe hazards, if any, to a reasonable margin for underwriting profit and contingencies, to dividends or savings allowed or returned by insurers to their policyholders or members, to past and prospective expenses both countrywide and those specifically applicable to this state, to all other relevant factors, including trend factors, within and outside this state, and in the case of fire insurance rates, to the underwriting experience of the fire insurance business during a period of not less than the most recent five (5) year period for which such experience is available and relevant.
(2) Risks may be grouped by classifications, by rating schedules, or by any other reasonable methods, for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. Such standards may measure any difference among risks that can be demonstrated to have a probable effect upon losses or expenses.
(3) The systems of expense provisions included in the rates for use by any insurer or group 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 with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable.
(4) Rates shall not be excessive, inadequate, or unfairly discriminatory.
No rate shall be held to be excessive unless such rate is unreasonably high for the insurance coverage provided and a reasonable degree of competition does not exist in the area with respect to the classification to which such rate is applicable. No rate shall be held to be inadequate unless such rate is unreasonably low for the insurance coverage provided and is insufficient to sustain projected losses and expenses, or unless such rate is unreasonably low for the insurance coverage provided and the use of such rate has, or if continued, will have, the effect of destroying competition or creating a monopoly. A rating difference that results from application of a rating plan that is intended to control rate changes applicable to a current policyholder upon renewal of the policy or the transfer of a policy in force among insurers is not unfairly discriminatory, is not an unfair or deceptive act or practice in the business of insurance under IC 27-4-1-4, and is not a violation of IC 27-1-20-30.
(b) Except to the extent necessary to meet the provisions of subsection (a)(4), uniformity among insurers in any matters within the scope of this section is neither required nor prohibited.
(c) For the purpose of making rates upon automobiles and other motor vehicles under the provisions of this chapter, the terms "fleet" or "fleet policy" shall mean an insurance risk of five (5) or more automobiles and other vehicles of any kind, all owned by one (1) insured and all under one (1) direct operating management; provided, that automobiles and other motor vehicles owned by employees may not be included or insured under a fleet policy of an employer under any circumstances.
Formerly: Acts 1967, c.133, s.3. As amended by P.L.252-1985, SEC.106; P.L.55-2011, SEC.1.

Structure Indiana Code

Indiana Code

Title 27. Insurance

Article 1. Department of Insurance

Chapter 22. Regulation of Insurance Rates

27-1-22-1. Purpose

27-1-22-2. Application of Act; Exceptions; "Inland Marine Insurance"

27-1-22-2.5. "Commercial Policyholder" Defined

27-1-22-3. Guidelines for Establishing Rates; Uniformity; Fleet or Fleet Policy

27-1-22-3.1. Senior Citizens Participating in Motor Vehicle Accident Prevention Courses; Reduced Premiums

27-1-22-4. Rate Filings; Exemptions; Procedure and Requirements; Rules; Confidentiality; Inspection; Notice of Changes

27-1-22-5. Hearing on Question of Compliance With Filing Requirements; Finding and Order

27-1-22-6. Bad Faith Filing; Burden of Proof; Order to Rewrite Policies at Approved Rate

27-1-22-7. Rate Adjustment Filing or Deviation; Effectiveness Unless Disapproved; Hearing; Approval or Disapproval

27-1-22-8. Rating Organizations; Definitions; License; Services to Subscribers; Rules; Cooperation

27-1-22-9. Deviation From Rates; Filing; Effective Date; Termination; Public Inspection

27-1-22-10. Insurers Acting in Concert

27-1-22-11. Appeal to Commissioner From Act or Decision of Rating Organization; Decision and Order

27-1-22-12. Procedure on Complaint by Insured

27-1-22-13. Advisory Organization; Filing and Regulation; Orders of Commissioner

27-1-22-14. Regulation of Organization of Insurers Engaging in Joint Underwriting or Joint Reinsurance; Unfair or Unreasonable Practices

27-1-22-15. Examination of Licensed Rating Organization; Report of Examination in Another State; Cost of Examination

27-1-22-16. Approval of Rules and Statistical Plans; Exchange of Information and Experience Data

27-1-22-17. Withholding Information; Giving False or Misleading Information

27-1-22-18. Deviation From Authorized Premium Charge; Discounts and Rebates as Inducement to Insure; Commissions for Insurance Producers

27-1-22-19. Freedom of Contract With Reference to Commissions

27-1-22-20. High Risk Auto Insurance; Apportionment Agreements; Rate Modifications

27-1-22-21. Repealed

27-1-22-22. Appointment and Removal of Additional Personnel; Powers of Deputy Conducting Hearings; Exemption From Personal Liability

27-1-22-23. Exemption of Rates and Classifications From Law Governing Rules and Regulations

27-1-22-24. Suspension or Revocation of Licenses

27-1-22-25. Motor Vehicle Insurance; Rating Plan Establishing Higher Rates for Bankruptcy Petitioners; Violations

27-1-22-26. Motor Vehicle Insurance; Rating Plan Establishing Higher Rates for Persons in Armed Forces; Violations

27-1-22-26.1. Motor Vehicle Insurance; Rating Plan for Active and Reserve Members of Armed Forces; Violation

27-1-22-27. Motor Vehicle Insurance; Rates for Innocent Prior-Uninsured Motorists

27-1-22-28. Title Insurance Filings; Title Insurance Rate Comparison Tool