Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-12 - Title Insurance Companies and Their Agents
Section 0780-01-12-.06 - RATE STANDARDS

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

(2) Rates are excessive if in the aggregate they are likely to produce a long run profit that is unreasonably high in relation to the riskiness of the class of business, or if expenses are unreasonably high in relation to the services rendered.

(3) Rates are inadequate if they are clearly insufficient, together with investment income attributable to them, to sustain projected losses and expenses, or if the continued use of such fees will have the effect of substantially lessening competition or the effect of tending to create a monopoly.

(4) Rates are unfairly discriminatory if the premium charged for any classification is not reasonably related to the services performed or the risks assumed by the insurer. Provided, however, within rate classifications premiums may, to a reasonable degree, be less in the case of small insurances and the excess may be charged against larger insurances, without rendering the rate unfairly discriminatory.

(5) In making or reviewing rates, due consideration shall be given to past and prospective loss experience, to exposure to loss, to underwriting practice and judgment, to past and prospective expenses including amounts paid to or retained by title agents, to investment income, to a reasonable margin for profit and contingencies, and to all other relevant factors both within and outside of this state.

(6) The Commissioner will consider unfair, unjust or unfairly discriminatory schedules of rate which, among other things: