1. Rates must be made in accordance with the following provisions: a. Due consideration must be given to past and prospective loss experience within this state and outside this state to the extent that the consideration is given to areas the commissioner determines are representative of this state, to any conflagration and catastrophe hazards, to a reasonable margin for profit and contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers, to past and prospective expenses both countrywide, as determined by the commissioner, and those specially applicable to this state, and to all other relevant factors within and outside this state. In the case of fire insurance rates, consideration must be given to the experience of the fire insurance business during a period of not less than the most recent five -year period for which the experience is available. In determining the reasonableness of the profit, consideration may be given to investment income. b. The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or group of insurers to reflect the requirements of the operating methods of any such insurer or group with respect to any kind of insurance, or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable. c. Risks may be grouped by classifications for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. The standards may measure any differences among risks that can be demonstrated to have a probable effect upon losses or expense. No risk classification, however, may be based upon race, creed, national origin, or the religion of the insured. d. Rates may not be excessive, inadequate, or unfairly discriminatory. 2. Except to the extent necessary to meet subdivision d of subsection 1, uniformity among insurers in any matters within the scope of this section is neither required nor prohibited. 3. Rates made in accordance with this section may be used subject to this chapter.
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