                                 CODE OF VIRGINIA

PROVISIONS GOVERNING MAKING OF RATES (§ 38.2-2005)

A. Rates for the classes of insurance to which this chapter applies shall not be
excessive, inadequate, or unfairly discriminatory. All rates and all changes and
amendments to rates to which this chapter applies for use in this Commonwealth
shall consider loss experience and other factors within Virginia if relevant and
actuarially sound; however, other data, including countrywide, regional or other
state data, may be considered where such data is relevant and where a sound
actuarial basis exists for considering data other than Virginia-specific data.

B. 1.  In making rates for the classes of insurance to which this chapter
applies, separate consideration shall be given to (i) past and prospective loss
experience within and outside this Commonwealth, (ii) conflagration or
catastrophe hazards, (iii) a reasonable margin for underwriting profit and
contingencies, (iv) dividends, savings or unabsorbed premium deposits allowed or
returned by insurers to their policyholders, members or subscribers, (v) past
and prospective expenses both countrywide and those specifically applicable to
this Commonwealth, (vi) investment income earned or realized by insurers from
their unearned premium and loss reserve and the Commission may give separate
consideration to investment income earned on surplus funds, (vii) the loss
reserving practices, standards and procedures utilized by the insurer, and
(viii) all other relevant factors within and outside this Commonwealth. When
actual experience or data does not exist, the Commission may consider estimates.

   2. In the case of fire insurance rates, consideration shall be given to the
   experience of the fire insurance business during a period of not less than the
   most recent five-year period for which such experience is available.

   3. [Repealed.]
   				In the case of workers&#8217; compensation insurance rates for volunteer
   firefighters or volunteer emergency medical services personnel written through
   the Virginia Worker&#8217;s Compensation Insurance Plan, the rates shall be
   calculated based upon the combined experience of both volunteer firefighters
   or volunteer emergency medical services personnel and paid firefighters or
   paid emergency medical services personnel, so that the resulting rate is the
   same for both volunteer and paid members, but in no event shall resulting
   premiums be less than $40 per year for any volunteer firefighter or volunteer
   emergency medical services personnel.

C. For the classes of insurance to which this chapter applies (i) 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 requirements of the operating methods of any such insurer or group
for any class of insurance, or for any subdivision or combination of insurance
for which separate expense provisions apply, and (ii) risks may be grouped by
classifications for the establishment of rates and minimum premiums.
Classification rates may be modified to produce rates for individual risks in
accordance with rating plans that establish standards for measuring variations
in hazards, expense provisions, or both. The standards may measure any
difference among risks that can be demonstrated to have a probable effect upon
losses or expenses.

D. All rates, rating schedules or rating plans and every manual of
classifications, rules and rates, including every modification thereof, approved
by the Commission under this chapter, shall be used until a change is approved
by the Commission.

HISTORY: Code 1950, §§ 38-208, 38-253.21, 38-253.68; 1950, p. 403; 1952, c.
317, § 38.1-252; 1962, c. 253; 1970, c. 186; 1972, c. 836; 1973, c. 504; 1986,
c. 562; 1987, c. 697; 1996, c. 250; 2002, c. 145; 2015, cc. 502, 503.