In determining whether rates comply with the standards set forth in § 56-5-103, the following criteria shall apply:

(1) Basic Factors in Rates. Due consideration shall be given to:

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Terms Used In Tennessee Code 56-5-104

  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(A) Past and prospective loss and expense experience within and outside this state;
(B) Catastrophe hazards;
(C) Any residual market loss redistributions and other similar obligations;
(D) A reasonable provision for profit and contingencies;
(E) Trends within and outside this state;
(F) Loadings for leveling premium rates over a reasonable period of time or for dividends or savings to be allowed or returned by insurers to their policyholders, members or subscribers; and
(G) All other relevant factors, including the judgment of the filer;
(2)Classification. Risks may be classified in any reasonable way for the establishment of rates except that no risks may be grouped by classifications based in whole or in part on race, color, creed, or national origin of the risk. Rates may be modified for individual risks in accordance with rating plans or schedules that provide for recognition of probable variations in hazards, expenses or both; and
(3)Expenses. The systems of expense provisions included in rates for use by an insurer or group of insurers may differ from those of other insurers or group of insurers to reflect the operating methods of the insurer, or group with respect to any kind of insurance, or with respect to any subdivision or combination of kinds of insurance.
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