The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
001
:
INSURANCE RATES AND STATISTICS
(Cite as: 8 V.S.A. § 4685)
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§ 4685. Rate standards
(a) General. Rates shall not be excessive, inadequate, or unfairly discriminatory.
(b) Excessiveness.
(1) Competitive market. A rate in a competitive market is not excessive.
(2) Noncompetitive market. Rates in a noncompetitive market are excessive if they are producing or are likely
to produce unreasonably high profits for the insurance provided or if expenses are
unreasonably high in relation to services rendered.
(c) Inadequacy. Rates are not inadequate unless insufficient to sustain projected losses and expenses
in the class or classes of business to which they apply or the use of such rates has
or, if continued, will have the effect of substantially lessening competition or the
tendency to create a monopoly in any market.
(d) Unfair discrimination. Unfair discrimination exists if, after allowing for practical limitations, price differentials
fail to reflect equitably the differences in expected losses and expenses. A rate
is not unfairly discriminatory because different premiums result for a class of policyholders
with like loss exposures but different expenses, or like expenses but different loss
exposures, provided that the rate equitably reflects the differences with reasonable
accuracy. A rate is not unfairly discriminatory if it is averaged broadly among persons
insured under a group, franchise, or blanket policy or a mass marketed plan. (Added 1983, No. 238 (Adj. Sess.), § 1; amended 2017, No. 134 (Adj. Sess.), § 6.)