CHAPTER 237

AN ACT to amend and reenact § 38-258.21 of the Code of 1930,
relating to provisions governing the making of insurance

rates.

[ H 521 ]
Approved March 15, 1950

Be it enacted by the General Assembly of Virginia:

1. That § 38-253.21 of the Code of 1950 be amended and re-
enacted as follows:

§ 38-253.21. Provisions governing making of rates.—All
rates shall be made in accordance with the following provisions:

(1) Due consideration shall be given to past and prospec-
tive loss experience within and outside this State, to catastrophe
hazards, if any, to a reasonable margin for underwriting profit
and contingencies, to dividends, savings or unabsorbed premium
deposits allowed or returned by insurers to their policyholders,
members or subscribers, to past and prospective expenses both
countrywide and those especially applicable to this State, and to
all other relevant factors within and outside this State;

(2) The systems of expense provisions included in the
rates for use by any insurer or group of insurers may differ from
those of other insurers or groups of insurers to reflect the re-
quirements of the operating methods of any such insurer or
group with respect to any kind of insurance, or with respect to
any subdivision or combination thereof for which subdivision or
combination separate expense provisions are applicable;

(3) Risks may be grouped by classifications for the estab-
lishment of rates and minimum premiums. Classification rates
may be modified to produce rates for individual risks in ac-
cordance with rating plans which establish standards for meas-
uring variations in hazards or expense provisions, or both.
Such standards may measure any differences among risks that
can be demonstrated to have a * probable effect upon losses or
expenses ;

(4) Rates shall not be excessive, inadequate or unfairly
discriminatory.