Section 560.002 - Use of Certain Rates Prohibited; Rate Requirements(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: (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.Added by Acts 2007, 80th Leg., R.S., Ch. 730, Sec. 1D.002, eff. 4/1/2009.