§ 24-305. Schedule of premium rates

   (a) Company not subject to Title 11 of this article. -- The Company is not subject to Title 11 of this article.

(b) Required. -- The Board shall:

   (1) adopt a schedule of premium rates in accordance with sound actuarial practices; and

   (2) ensure that the rates are not excessive, inadequate, or unfairly discriminatory.

(c) Criteria. --

   (1) The Board shall determine the schedule of premium rates by:

      (i) classifying all of the policyholders of the Company on the basis of the respective level of hazard of their enterprises; and

      (ii) setting a premium rate for each class on the basis of:

         1. its level of hazard; and

         2. incentives to prevent injuries to employees.

   (2) To determine the schedule of premium rates, the Board shall use the rating system that, in the opinion of the Board:

      (i) most accurately measures the level of hazard for each policyholder on the basis of the number of injuries that occur in the enterprises of the policyholder;

      (ii) encourages the prevention of injuries; and

      (iii) ensures the solvency of the Company from year to year.

   (3) The Board may set minimum premium rates for policies issued by the Company.

(d) Review. -- The Commissioner shall review the Company's rates as part of an examination under § 2-205 of this article to determine whether the Company's rate making practices produce actuarially sound rates.

HISTORY: 2012, ch. 570, § 1.