Section 1901.054 - Limitations on Rates(a) Rates set under this chapter may not be excessive or inadequate, as described by this section, or unreasonable or unfairly discriminatory.(b) A rate is not excessive unless the rate is unreasonably high for the insurance coverage provided.(c) A rate is not inadequate unless the rate is unreasonably low for the insurance coverage provided and: (1) is insufficient to sustain projected losses and expenses; or(2) the use of the rate has or, if continued, will have the effect of destroying competition or creating a monopoly.Tex. Ins. Code § 1901.054
Amended By Acts 2007, 80th Leg., R.S., Ch. 730, Sec. 3B.034(a), eff. 9/1/2007.Amended By Acts 2007, 80th Leg., R.S., Ch. 921, Sec. 9.034(a), eff. 9/1/2007.Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. 4/1/2007.