Rates shall be adequate to cover an insurer’s losses and expenses. Rates shall not tend to create a monopoly in the market. For the purpose of this section, the rates of any individual insurer, other than the State Compensation Insurance Fund, are presumed to create a monopoly in the market if the insurer has a market share, based on a percentage of statewide workers’ compensation premium, equivalent to 20 percent or more of the premium written by all insurers other than the State Compensation Insurance Fund.
Cal. Ins. Code § 11732
State Rate Supervision
Applied in 1 court decision — leading case 109 Cal. App. 4th 1496 - Simi Corporation v. Garamendi (2003)
Most recently applied in 109 Cal. App. 4th 1496 - Simi Corporation v. Garamendi (June 2003)
Amended by Stats. 2002, Ch. 873, Sec. 2
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.