4 ms·
I was under the impression that in some states there is a percentage profit rule, is that not the case or a better interpretation of how that works?
by Shivetya 7y ago
I was under the impression that in some states there is a percentage profit rule, is that not the case or a better interpretation of how that works?
- SubparUser 7y agoSo I am not an actuary so I'm not super familiar with all the rules, but i believe there isn't a hard and fast profit rule for auto insurance. Now that being said, a lot of the times we use the observed loss ratio as rational for changes to plans so if we were 'too profitable' i would imagine it would open us up to a lot more scrutiny from the DOIs.