North Carolina General Statutes
Article 40 - Regulation of Insurance Rates.
§ 58-40-20 - Rate standards.

58-40-20. Rate standards.
(a) In order to serve the public interest, rates shall not be excessive, inadequate, or unfairly discriminatory.
(b), (c) Repealed by Session Laws 1985 (Reg. Sess., 1986), c. 1027, s. 10.
(d) No rate is inadequate unless the rate is unreasonably low for the insurance provided and the use or continued use of the rate by the insurer has had or will have the effect of:
(1) Endangering the solvency of the insurer; or
(2) Destroying competition; or
(3) Creating a monopoly; or
(4) Violating actuarial principles, practices, or soundness.
(e) A rate is not unfairly discriminatory in relation to another in the same class if it reflects equitably the differences in expected losses and expenses. Rates are not unfairly discriminatory because different premiums result for policyholders with like loss exposures but different expense factors, or like expense factors but different loss exposures, as long as the rates reflect the differences with reasonable accuracy. Rates are not unfairly discriminatory if they are averaged broadly among persons insured under a group, franchise, or blanket policy. (1977, c. 828, s. 2; 1985 (Reg. Sess., 1986), c. 1027, ss. 9.1, 10, 11.)

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