(a) An insurer may not use a rate that violates this chapter.
(b) A rate used under this code:
(1) must be just, fair, reasonable, and adequate; and
(2) may not be:
(A) confiscatory;
(B) excessive for the risks to which the rate applies; or
(C) unfairly discriminatory.
(c) For purposes of this section, a rate is:
(1) inadequate if the rate is insufficient to sustain projected losses and expenses to which the rate applies, and 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 any market;
(2) excessive if the rate is likely to produce a long-term profit that is unreasonably high in relation to the insurance coverage provided; or
(3) unfairly discriminatory if the rate:
(A) is not based on sound actuarial principles;
(B) does not bear a reasonable relationship to the expected loss and expense experience among risks; or
(C) is based wholly or partly on the race, creed, color, ethnicity, or national origin of the policyholder or an insured.