Sec. 1901.054. LIMITATIONS ON RATES. (a) Rates set under this chapter may not be excessive or inadequate, as described by this section, or unreasonable or unfairly discriminatory.
(b) A rate is not excessive unless the rate is unreasonably high for the insurance coverage provided.
(c) A rate is not inadequate unless the rate is unreasonably low for the insurance coverage provided and:
(1) is insufficient to sustain projected losses and expenses; or
(2) the use of the rate has or, if continued, will have the effect of destroying competition or creating a monopoly.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.034(a), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.034(a), eff. September 1, 2007.
Section: Previous 1901.002 1901.003 1901.004 1901.005 1901.051 1901.052 1901.053 1901.054 1901.0541 1901.055 1901.056 1901.057 1901.101 1901.102 1901.151 NextLast modified: September 28, 2016