29.1561 Standards.

Cite as [A.S.C.A. § 29.1561]

An insurer, in making rates, and the Commissioner in approving them, shall apply the follow-ing standards:

(a) Rates shall not be excessive or inadequate, as herein provided, nor shall they be unfair or discriminatory.

(b) No rate may be held excessive unless such rate is unreasonably high for the insurance provided and a reasonable degree of competition does not exist in American Samoa with respect to the classification to which the rate is applicable.

(c) No rate may be held inadequate unless the rate is unreasonably low for the insurance provided and the continued use of the rate endangers the solvency of the insurer, or unless the rate is unreasonably low for the insurance provided and the use of the rate by the insurer will have the effect of destroying competition in American Samoa.

(d) Consideration must be given, to the extent applicable, to past and prospective loss experiences, to prevailing hazards, and to underwriting profits, contingencies, expenses and other normal business requirements and factors, or used by the insurer, rating, or advisory organi-zation, does not comply with the requirements and standards of 29.1560 through 29.1565, he shall, unless he has reason to believe the noncompliance is willful, give notice in writing to the insurer, rating or advisory organization stating in what manner the noncompliance is alleged to exist and specifying a time, not less than 10 days after the date of mailing, in which the noncompliance must be corrected.

History: 1974, PL 13-58 § 1.