Vermont § 4685 - Rate standards

§ 4685. Rate standards

• (a) General. Rates shall not be excessive, inadequate, or unfairly discriminatory. (b) Excessiveness. (1) Competitive market. A rate in a competitive market is not excessive. (2) Noncompetitive market. Rates in a noncompetitive market are excessive if they are producing or are likely
  to produce unreasonably high profits for the insurance provided or if expenses are
  unreasonably high in relation to services rendered. (c) Inadequacy. Rates are not inadequate unless insufficient to sustain projected losses and expenses
  in the class or classes of business to which they apply or the use of such rates has
  or, if continued, will have the effect of substantially lessening competition or the
  tendency to create a monopoly in any market. (d) Unfair discrimination. Unfair discrimination exists if, after allowing for practical limitations, price differentials
  fail to reflect equitably the differences in expected losses and expenses. A rate
  is not unfairly discriminatory because different premiums result for a class of policyholders
  with like loss exposures but different expenses, or like expenses but different loss
  exposures, provided that the rate equitably reflects the differences with reasonable
  accuracy. A rate is not unfairly discriminatory if it is averaged broadly among persons
  insured under a group, franchise, or blanket policy or a mass marketed plan. (Added 1983, No. 238 (Adj. Sess.), § 1; amended 2017, No. 134 (Adj. Sess.), § 6.)