{"data":{"id":"us-ut/utah-code-31a-19a-201","jurisdiction":"us-ut","citation":"Utah Code § 31A-19a-201","heading":"Rate standards.","body":"(1) Rates may not be excessive, inadequate, or unfairly discriminatory.\n(2)\n(a) Rates are not excessive if a reasonable degree of price competition exists at the consumer level with respect to the class of business to which they apply. In determining whether a reasonable degree of price competition exists, the commissioner shall consider:\n(i) relevant tests of workable competition pertaining to:\n(A) market structure;\n(B) market performance; and\n(C) market conduct; and\n(ii) the practical opportunities available to consumers in the market to:\n(A) acquire pricing and other consumer information; and\n(B) compare and obtain insurance from competing insurers.\n(b) The tests described in Subsection (2)(a) include:\n(i) the size and number of insurers actively engaged in the market and class of business;\n(ii) the market shares of insurers actively engaged in the market and changes in market shares;\n(iii) the existence of rate differentials in that class of business;\n(iv) ease of entry and latent competition of insurers capable of easy entry;\n(v) availability of consumer information concerning the product and sales outlets or other sales mechanisms; and\n(vi) efforts of insurers to provide consumer information.\n(c) If reasonable price competition does not exist, rates are excessive if:\n(i) rates are likely to produce a long-term profit that is unreasonably high in relation to the riskiness of the class of business; or\n(ii) expenses are unreasonably high in relation to the services rendered.\n(3) Rates are inadequate if:\n(a) they are clearly insufficient, when combined with the investment income attributable to them, to sustain the projected losses and expenses in the class of business to which they apply; and\n(b) the use of such rates has or, if continued, will have:\n(i) the effect of substantially lessening competition; or\n(ii) the tendency to create a monopoly in any market.\n(4)\n(a) A rate is unfairly discriminatory if price differentials fail to equitably reflect the differences in expected losses and expenses after allowing for practical limitations.\n(b) A rate is not unfairly discriminatory if it is averaged broadly among persons insured under a:\n(i) group, franchise, or blanket policy; or\n(ii) mass marketed plan.","path":["Title 31A Insurance Code","Chapter 31A-19a Utah Rate Regulation Act","Part 31A-19a-2 General Rate Regulation"],"source_url":"https://le.utah.gov/xcode/Title31A/Chapter19a/31A-19a-S201.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"3ad9307ad7af2d8074b3d331569d3ac090948549b07b1afd5143e4eb83b96941","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-31a-19a-103","next":"us-ut/utah-code-31a-19a-202"},"notice":"GroundRules: Original legal text. Not legal advice."}