Vermont § 4686 - Rating methods or criteria In determining whether rates comply with the excessiveness standard in a noncompetitive market under subdivision 4685(b)(2) of this title, the inadequacy standard under subsection 4685

§ 4686. Rating methods or criteria In determining whether rates comply with the excessiveness standard in a noncompetitive market under subdivision 4685(b)(2) of this title, the inadequacy standard under subsection 4685

• (c) of this title and the unfair discrimination standard under subsection 4685(d) of this title, the following criteria shall apply: (1) Basic factors in rates. Due consideration shall be given to past and prospective loss and expense experience
  within, and as reasonable and necessary outside this State; to catastrophe hazards;
  to residual market loss redistributions and other similar obligations, if any; to
  a reasonable provision for underwriting profit; to contingencies, if any; to trends
  within and outside this State; to loadings for leveling premium rates over time or
  for dividends or savings to be allowed or returned by insurers to their policyholders,
  members, or subscribers; and to all other relevant factors. (2) Classification. Risks may be classified in any lawful and reasonable way for the collection of statistics
  and establishment of rates. Rates may be modified for individual risks in accordance
  with rating plans or schedules which provide for recognition of probable variations
  in hazards, expenses, or both. (3) Expenses. The expense provisions included in the rates to be used by an insurer shall reflect
  the operating methods of the insurer, and, so far as is determinable and reasonable,
  its own actual and anticipated expense experience for the kind of insurance involved,
  or any subdivision thereof. (4) Profits. The rates shall contain an allowance providing for a reasonable profit. In determining
  the reasonableness of profit, consideration shall be given to all relevant investment
  income and a provision for contingencies may be included. (Added 1983, No. 238 (Adj. Sess.), § 1; 1987, No. 185 (Adj. Sess.), § 2, eff. May 5, 1988.)