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This entry was published on 2020-04-24
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Motor vehicle insurance rates; excess profits
Insurance (ISC) CHAPTER 28, ARTICLE 23
§ 2329. Motor vehicle insurance rates; excess profits. In accordance
with regulations prescribed by the superintendent, each insurer issuing
policies that are subject to article fifty-one of this chapter,
including policies of motor vehicle personal injury liability insurance
or policies of motor vehicle property damage liability insurance or
insurance for loss or damage to a motor vehicle, shall establish a fair,
practicable, and nondiscriminatory plan for refunding or otherwise
crediting to those purchasing such policies their share of the insurer's
excess profit, if any, on such policies. An excess profit shall be a
profit beyond a percentage rate of return on net worth attributable to
such policies, computed in accordance with the regulation required by
section two thousand three hundred twenty-three of this article, and
determined by the superintendent to be so far above a reasonable average
profit as to amount to an excess profit, taking into consideration the
fact that losses or profits below a reasonable average profit will not
be recouped from such policyholders. Each plan shall apply to policy
periods for the periods January first, nineteen hundred seventy-four
through August second, two thousand one, and the effective date of the
property/casualty insurance availability act through June thirtieth, two
thousand twenty-three. In prescribing such regulations the
superintendent may limit the duration of such plans, waive any
requirement for refund or credit that he or she determines to be de
minimis or impracticable, adopt forms of returns that shall be made to
him or her in order to establish the amount of any refund or credit due,
establish periods and times for the determination and distribution of
refunds and credits, and shall provide that insurers receive appropriate
credit against any refunds or credits required by any such plan for
policyholder dividends and for return premiums that may be due under
rate credit or retrospective rating plans based on experience.