Tex. Ins. Code § 2251.051 · Subchapter B. RATE STANDARDS
EXCESSIVE, INADEQUATE, AND UNFAIRLY DISCRIMINATORY RATES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A rate is excessive, inadequate, or unfairly discriminatory for purposes of this chapter as provided by this section.
(b) A rate is excessive if the rate is likely to produce a long-term profit that is unreasonably high in relation to the insurance coverage provided.
(c) A rate is inadequate if:
(1) the rate is insufficient to sustain projected losses and expenses to which the rate applies; and
(2) continued use of the rate:
(A) endangers the solvency of an insurer using the rate; or
(B) has the effect of substantially lessening competition or creating a monopoly in a market.
(d) A rate is unfairly discriminatory if the rate:
(1) is not based on sound actuarial principles;
(2) does not bear a reasonable relationship to the expected loss and expense experience among risks; or
(3) is based wholly or partly on the race, creed, color, ethnicity, or national origin of the policyholder or an insured.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2251.htm
- Text hash
- sha256 62453ce54b293dbbe52e1df38d527af03446c16d2c8381a06e8b0e6f75e778a3
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 1 provision
Provisions in this library whose text cites Tex. Ins. Code § 2251.051. Each shows the citation as that text prints it.
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