§ 27-9-18 - Disapproval of filing after review period – Removal of discrimination – Hearings to determine effect of legislation.
SECTION 27-9-18
§ 27-9-18 Disapproval of filing afterreview period – Removal of discrimination – Hearings to determineeffect of legislation. – (a) If at any time, subsequent to the applicable review period provided for in§ 27-9-16 or § 27-9-17, the commissioner finds that a rate or filingdoes not meet the requirements of this chapter, he or she shall, after ahearing held upon not less than ten (10) days written notice specifying thematters to be considered at that hearing to every insurer and ratingorganization which used that rate or made that filing, issue an orderspecifying on what respects he or she finds that the rate or filing fails tomeet the requirements of this chapter, and stating when, within a reasonableperiod after this, the rate shall no longer be used or the filing shall bedeemed no longer effective. That order shall not affect any contract or policymade or issued prior to the expiration of the period set forth in the order. Ifthe commissioner finds that an unfair discrimination exists in the applicationof a rate or filing to an individual risk the commissioner may, after a hearingheld on similar notice to the insurer affected and to any rating organizationwhich made the filing, issue an order that the discrimination be removed.
(b) Whenever legislation is enacted that restricts or removescommon law rights of action in tort and/or statutory rights as to causes ofaction or damages, within one year after the passage of that restrictivelegislation, those insurance companies underwriting affected lines shallrequest hearings to be held to determine the effect of that legislation oninsurance policies, their cost and benefits;
(2) The findings of the hearings with reference to thedecrease of frequency in claims shall constitute the basis for an immediatereduction of rates and if excess profits have been obtained, the commissionershall order a refund of all excess profits, and he or she shall annually reviewthe continued effect of the legislation until it is reasonably ascertained thata proper rate level has been established. Copies of any order issued pursuantto this section shall be sent to every affected insurer and rating organization.