Competitive Market. A. A competitive market is presumed to exist for a line of insurance unless the Commissioner, after a hearing, issues an order stating that a reasonable degree of competition does not exist in the market. The burden of proof in any hearing shall be placed on the party or parties advocating the position that competition does not exist. Any ruling that a market is not competitive shall identify the factors causing the market not to be competitive. Such order shall expire no later than one (1) year after issue unless rescinded earlier by the Commissioner or unless the Commissioner renews the rule after a hearing and a finding as to the continued lack of a reasonable degree of competition. Any ruling that renews the finding that competition does not exist shall also identify the factors that cause the market to continue not to be competitive. B. 1. In determining whether a reasonable degree of competition exists within a line of insurance, the Commissioner shall consider the following factors: a. the number of insurers actively engaged in writing coverage, b. market shares of the leading writers and the changes in market shares over a reasonable period of time, c. existence of financial or economic barriers that could prevent new firms from entering the market, d. measures of market concentration and changes of market concentration over time, e. whether long-term profitability for insurers in the market is reasonable in relation to industries of comparable business risk, and f. the relationship of insurers' costs to revenue over a reasonable period of time. 2. All determinations by the Commissioner shall be made on the basis of findings of fact and conclusions of law. 3. The ruling may be challenged in the district court. C. The Commissioner shall monitor the degree and continued existence of competition in this state on an ongoing basis. In doing so, the Commissioner may utilize existing relevant information, analytical systems and other sources, or rely on some combination thereof. Such activities may be conducted internally within the Insurance Department, in cooperation with other state insurance departments, through outside contractors or in any other appropriate manner.
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