Texas § IN.2053.002 - RATE STANDARDS
Full text of Texas The Texas Constitution § IN.2053.002 — RATE STANDARDS, with citation guidance and answers to common questions.
§ IN.2053.002. RATE STANDARDS
RATE STANDARDS. (a) In setting rates, an insurance company shall consider: (1) past and prospective loss cost experience; (2) operation expenses; (3) investment income; (4) a reasonable margin for profit and contingencies; (5) the effect on premiums of individual risk variations based on loss or expense considerations; and (6) any other relevant factor. (b) A rate or premium established under this subchapter may not be excessive, inadequate, or unfairly discriminatory. (c) An insurance company may: (1) group risks by classification to establish rates and minimum premiums; and (2) modify classification rates to produce rates for individual risks in accordance with rating plans that establish standards for measuring variations in those risks on the basis of any factor listed in Subsection (a). (d) In setting rates that apply only to policyholders in this state, an insurance company shall use available premium, loss, claim, and exposure information from this state to the full extent that the information is actuarially credible. The insurance company may use experience from outside this state as necessary to supplement information from this state that is not actuarially credible. 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.043(a), eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167 ), Sec. 9.043(a), eff. September 1, 2007.
Frequently Asked Questions About Texas § IN.2053.002
What does The Texas Constitution § IN.2053.002 cover?
Section IN.2053.002 ("RATE STANDARDS") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § IN.2053.002?
A common citation format is "The Texas Constitution § IN.2053.002" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.2053.002 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.