Skip to main content
Find a Lawyer

Utah Code Title 31A. Insurance Code § 31A-19a-201. Rate standards

Current as of May 05, 2022 | Updated by FindLaw Staff

(1) Rates may not be excessive, inadequate, or unfairly discriminatory.

(2)(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:

(i) relevant tests of workable competition pertaining to:

(A) market structure;

(B) market performance;  and

(C) market conduct;  and

(ii) the practical opportunities available to consumers in the market to:

(A) acquire pricing and other consumer information;  and

(B) compare and obtain insurance from competing insurers.

(b) The tests described in Subsection (2)(a) include:

(i) the size and number of insurers actively engaged in the market and class of business;

(ii) the market shares of insurers actively engaged in the market and changes in market shares;

(iii) the existence of rate differentials in that class of business;

(iv) ease of entry and latent competition of insurers capable of easy entry;

(v) availability of consumer information concerning the product and sales outlets or other sales mechanisms;  and

(vi) efforts of insurers to provide consumer information.

(c) If reasonable price competition does not exist, rates are excessive if:

(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

(ii) expenses are unreasonably high in relation to the services rendered.

(3) Rates are inadequate if:

(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

(b) the use of such rates has or, if continued, will have:

(i) the effect of substantially lessening competition;  or

(ii) the tendency to create a monopoly in any market.

(4)(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.

(b) A rate is not unfairly discriminatory if it is averaged broadly among persons insured under a:

(i) group, franchise, or blanket policy;  or

(ii) mass marketed plan.

Back to chapter list
Previous part of code Next part of code
Back to chapter list

Cite this article: FindLaw.com - Utah Code Title 31A. Insurance Code § 31A-19a-201. Rate standards - last updated May 05, 2022 | https://codes.findlaw.com/ut/title-31a-insurance-code/ut-code-sect-31a-19a-201/

Read this complete Utah Code Title 31A. Insurance Code § 31A-19a-201. Rate standards on Westlaw

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

Was this helpful?

Search all Utah Codes

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About the Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to find an attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

    More Options
    Copied to clipboard