{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-985","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-985","heading":"Ratemaking standards","body":"Ratemaking Standards.\n\nA. A rate may not be excessive, inadequate or unfairly\n\ndiscriminatory.\n\n1. No rate in a competitive market may be determined to be\n\nexcessive. A rate in a noncompetitive market may be determined to\n\nbe excessive if it is likely to produce a profit that is\n\nunreasonably high for the insurance provided.\n\n2. A rate may not be determined to be inadequate unless:\n\na. the rate is clearly insufficient to sustain projected\n\nlosses, expenses and special assessments, and\n\nb. the rate is unreasonably low and use of the rate by\n\nthe insurer has tended or, if continued, will tend to\n\ncreate a monopoly in the market.\n\n3. Unfair discrimination may be determined to exist if, after\n\nallowing for practical limitations, price differentials fail to\n\nreflect equitably the differences in expected losses and expenses.\n\nA rate may not be determined to be unfairly discriminatory because\n\ndifferent premiums result for policyholders with like loss exposures\n\nbut different expense levels, or like expenses but different loss\n\nexposures, or if it averaged broadly among persons insured within a\n\ngroup, franchise or blanket policy or a mass-marketed plan. No rate\n\nin a competitive market shall be considered unfairly discriminatory\n\nunless it classifies risk on the basis of race, color, creed, or\n\nnational origin.\n\nB. In determining whether rates in a noncompetitive market are\n\nexcessive, inadequate, or unfairly discriminatory, due consideration\n\nmay be given to:\n\n1. Past and prospective loss experience within and outside this\n\nstate, in accordance with accepted actuarial principles;\n\n2. Conflagration and catastrophe hazards;\n\n3. A reasonable margin for underwriting profit and\n\ncontingencies;\n\n4. Loadings for leveling premium rates over time for dividends,\n\nsavings or unabsorbed premium deposits allowed or returned by\n\ninsurers to their policyholders, members or subscribers;\n\n5. Past and prospective expenses both countrywide and those\n\nspecially applicable to this state; and\n\n6. Provisions for special assessments; and to all other\n\nrelevant factors including judgment within and outside this state.\n\nC. Risks may be grouped by classifications for the\n\nestablishment of rates and minimum premiums. Classification rates\n\nmay be modified to produce rates for individual risks in accordance\n\nwith rating plans which establish standards for measuring variations\n\nin hazards or expense provisions, or both. Such standards may\n\nmeasure any differences among risks that can be demonstrated to have\n\na probable effect upon losses or expenses. No risk classification\n\nhowever, may be based on race, creed, national origin, or the\n\nreligion of the insured.\n\nD. The expense provisions included in the rates for use by an\n\ninsurer or group of insurers may differ from those of any other\n\ninsurer or group of insurers to reflect the requirements of the\n\noperating methods of the insurer or group of insurers.\n\nE. The rates may contain provision for contingencies and an\n\nallowance permitting a reasonable profit. In determining the\n\nreasonableness of the profit, consideration shall be given to the\n\ninvestment income attributable to the line of insurance.\n\nF. Risks may be classified in any way except that no risk may\n\nbe classified on the basis of race, color, creed, or national\n\norigin.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"60cc3b82c7d71c47f2e5dc9e0daf85ced3058e46bdbc8c4710c9ded4bcebda76","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-984","next":"us-ok/okla.-stat.-tit.-36-36-985.1"},"notice":"GroundRules: Original legal text. Not legal advice."}