Okla. Stat. tit. 36, § 36-985

Ratemaking Standards.

A. A rate may not be excessive, inadequate or unfairly

discriminatory.

1. No rate in a competitive market may be determined to be

excessive. A rate in a noncompetitive market may be determined to

be excessive if it is likely to produce a profit that is

unreasonably high for the insurance provided.

2. A rate may not be determined to be inadequate unless:

a. the rate is clearly insufficient to sustain projected

losses, expenses and special assessments, and

b. the rate is unreasonably low and use of the rate by

the insurer has tended or, if continued, will tend to

create a monopoly in the market.

3. Unfair discrimination may be determined to exist if, after

allowing for practical limitations, price differentials fail to

reflect equitably the differences in expected losses and expenses.

A rate may not be determined to be unfairly discriminatory because

different premiums result for policyholders with like loss exposures

but different expense levels, or like expenses but different loss

exposures, or if it averaged broadly among persons insured within a

group, franchise or blanket policy or a mass-marketed plan. No rate

in a competitive market shall be considered unfairly discriminatory

unless it classifies risk on the basis of race, color, creed, or

national origin.

B. In determining whether rates in a noncompetitive market are

excessive, inadequate, or unfairly discriminatory, due consideration

may be given to:

1. Past and prospective loss experience within and outside this

state, in accordance with accepted actuarial principles;

2. Conflagration and catastrophe hazards;

Oklahoma Statutes - Title 36. Insurance Page 233

3. A reasonable margin for underwriting profit and

contingencies;

4. Loadings for leveling premium rates over time for dividends,

savings or unabsorbed premium deposits allowed or returned by

insurers to their policyholders, members or subscribers;

5. Past and prospective expenses both countrywide and those

specially applicable to this state; and

6. Provisions for special assessments; and to all other

relevant factors including judgment within and outside this state.

C. Risks may be grouped by classifications for the

establishment of rates and minimum premiums. Classification rates

may be modified to produce rates for individual risks in accordance

with rating plans which establish standards for measuring variations

in hazards or expense provisions, or both. Such standards may

measure any differences among risks that can be demonstrated to have

a probable effect upon losses or expenses. No risk classification

however, may be based on race, creed, national origin, or the

religion of the insured.

D. The expense provisions included in the rates for use by an

insurer or group of insurers may differ from those of any other

insurer or group of insurers to reflect the requirements of the

operating methods of the insurer or group of insurers.

E. The rates may contain provision for contingencies and an

allowance permitting a reasonable profit. In determining the

reasonableness of the profit, consideration shall be given to the

investment income attributable to the line of insurance.

F. Risks may be classified in any way except that no risk may

be classified on the basis of race, color, creed, or national

origin.