§ 11-402. Rate making principles generally

   (a) In general. -- All title insurance rates shall be made in accordance with this section.

(b) Reasonable and adequate rates. -- Rates shall be reasonable and adequate for the class of risks to which they apply.

(c) Unfairly discriminatory rates. -- Rates may not discriminate unfairly between risks that involve essentially the same hazards and expense elements.

(d) Factors to be considered. -- Due consideration shall be given to:

   (1) past and prospective loss experience within and outside the State;

   (2) a reasonable margin for profit and contingencies;

   (3) the cost of participating insurance;

   (4) the percentage to be allocated to reserve;

   (5) operating expenses; and

   (6) all other relevant factors fairly attributable to the business of title insurance.

(e) Classifications of guarantees. --

   (1) Guarantees may be grouped by classifications for the establishment of rates and minimum premiums.

   (2) A special or unusual guarantee that is more hazardous to the title insurer than ordinary title guarantees because of an alleged irregularity or a difference in interpretation or application of law that might affect marketability of title, may be classified individually and separately according to the circumstances peculiar to each case.

HISTORY: An. Code 1957, art. 48A, § 242A; 1997, ch. 35, § 2.