Section 1035.4 - Standards for rates(a) The following standards shall apply to the making and use of rates under this article:(1) Rates may not be: (i) excessive or inadequate as defined under this article; or(ii) unfairly discriminatory.(2) A rate may not be held to be excessive unless it is likely to produce a long-run profit that is unreasonably high in relation to the risk undertaken and the services to be rendered.(3) A rate may not be held to be inadequate unless:(i) it is unreasonably low for the insurance provided and continued use of it would endanger solvency of the insurer; or(ii) the rate is unreasonably low for the insurance provided and the use of the rate by the insurer has had or, if continued, will have the effect of destroying competition or of creating monopoly.(b) In determining whether rates comply with standards under subsection (a), due consideration shall be given to:(1) Past and prospective loss experience within and outside this Commonwealth in accordance with sound actuarial principles.(3) A reasonable margin for underwriting profit and contingencies.(4) Dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders or members or subscribers.(5) Past and prospective expenses, both countrywide and those specially applicable to this Commonwealth.(6) Investment income earned or realized by insurers both from their unearned premium and from their loss reserve funds.(7) All relevant factors within and outside this Commonwealth in accordance with sound actuarial principles.(c) As to the kinds of insurance to which this article applies, the systems of expense provisions included in the rates for use by an insurer or group of insurers may differ from those of any other insurers or groups of insurers to reflect the requirements of the operating methods of the insurer or group of insurers.1915, June 2, P.L. 736, No. 338, §704, added 1993 , July 2, P.L. 190, No. 44, § 20, imd. effective.