Limitations On Rates

Sec. 1901.054. LIMITATIONS ON RATES. (a) Rates set under this chapter may not be excessive or inadequate, as described by this section, or unreasonable or unfairly discriminatory. (b) A rate is not excessive unless the rate is unreasonably high for the insurance coverage provided. (c) A rate is not inadequate unless the rate is unreasonably low for the insurance coverage provided and: (1) is insufficient to sustain projected losses and expenses; or (2) the use of the rate has or, if continued, will have the effect of destroying competition or creating a monopoly. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007. Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.034(a), eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.034(a), eff. September 1, 2007.