The Vermont Statutes Online
Banking and Insurance
PROPERTY AND CASUALTY INSURANCE RATE REGULATION
INSURANCE RATES AND STATISTICS
4689. Approval or disapproval of rates
(a) Timing of
approval or disapproval.
(1) A rate may
be disapproved at any time subsequent to the effective date.
(2) A rate
subject to prefiling may also be disapproved before the effective date.
(3) A rate for a
residual market in which insurers are permitted or mandated by law or by order
of the Commissioner to participate shall not become effective until approved by
the Commissioner, as provided in section 4688 of this title.
(b) Bases of
(1) The Commissioner
shall disapprove a rate for use in a competitive market if the Commissioner
finds that the rate is inadequate, or unfairly discriminatory.
Commissioner shall disapprove a rate for use in a noncompetitive or residual
market if the Commissioner finds that the rate is excessive, inadequate, or
procedure; order; interim rates.
(A) If the
Commissioner determines, in accordance with section 4684 of this title, that a
reasonable degree of competition does not exist in a market, the Commissioner
shall commence a hearing to determine whether or not existing rates are
excessive within 30 days of an order finding a market noncompetitive. However,
the Commissioner may waive this requirement to hold a hearing if the
Commissioner finds such rate filings do not violate the rate standards of this
chapter. The Commissioner shall decide whether rates are excessive within 15
days after the conclusion of the hearing. Insurers shall have the burden of
proving rates are not excessive in a noncompetitive market.
(B) If the
Commissioner believes that rates in a competitive market violate the inadequacy
standard in section 4685 of this title or any other requirement of this
chapter, the Commissioner shall require insurers in that market to file
additional supporting information for rates. If after reviewing such additional
supporting rate information the Commissioner continues to believe that the
rates violate these requirements, the Commissioner shall call a hearing before
entering any order.
Commissioner may disapprove, without a hearing, prefiled rates. However, the
insurer or other filer whose rates have been disapproved shall be given a
hearing upon written request made within 30 days after the receipt of the
disapproval. The Commissioner shall notice in every order of disapproval that a
hearing will be granted within 30 days after receipt of a request from an
(2) Order. If
the Commissioner disapproves a rate, the Commissioner shall issue an order
specifying in what respect it fails to meet the requirements of this chapter.
For rates in effect at the time of disapproval, the Commissioner shall state
when the further use of such rate in contracts of insurance made thereafter
shall be prohibited.
rates. In the event existing rates of an insurer are found excessive the
Commissioner shall specify an interim rate at the time he or she issues an
order disapproving rates. The interim rate may be modified by the Commissioner
upon his or her own motion or upon motion of an insurer. The interim rate or
any modification thereof shall take effect prospectively in contracts of
insurance written or renewed 15 days after the Commissioner's decision setting
of overcharges. When the rates are finally determined, the Commissioner shall
order any overcharge in the interim rates to be distributed appropriately,
except that refunds to policyholders that are determined to be de minimis by
the Commissioner shall be remitted to the State of Vermont General Fund. (Added
1983, No. 238 (Adj. Sess.), § 1;1987, No. 185 (Adj. Sess.), § 3, eff. May 5,