Section 2350. Flexible rating for nonbusiness automobile insurance policies

(a)  Except  as  provided  in  subsection  (b)  of this section, overall
  average (for all coverages combined) rate level increases  or  decreases
  of  five  percent  above or below the insurer's rates in effect may take
  effect without  prior  approval  with  respect  to  rates  for  policies
  covering  losses  or liabilities arising out of the ownership of a motor
  vehicle  predominantly  used   for   nonbusiness   purposes,   including
  classification  plans  predominantly  consisting  of  vehicles  used for
  nonbusiness purposes, when a natural person is the named insured under a
  policy of automobile insurance.
    (b) Notwithstanding any other provisions  of  this  article,  for  any
  policies  governed  by  this  section,  filings  that produce rate level
  changes within the  limitation  specified  in  subsection  (a)  of  this
  section  shall  become  effective  without  prior  approval  pursuant to
  subsection (a) of section  two  thousand  three  hundred  five  of  this
  article,  provided  however (1) that no more than two rate increases the
  total of which shall not exceed the limitation specified  in  subsection
  (a)  of  this section may be implemented during any twelve month period;
  and (2) no rate increase within the limitation specified  in  subsection
  (a) of this section may be implemented until the onset of the new policy
  period  and  unless the insurer, at least thirty but not more than sixty
  days in advance of the end of the policy period, mails  or  delivers  to
  the  named insured, at the address shown in the policy, a written notice
  of its intention to change the rate. The specific reason or reasons  for
  the rate change shall be stated in or shall accompany the notice.
    (c)   The   superintendent  shall  promulgate  rules  and  regulations
  implementing the provisions of this section.
    (d)  The  superintendent  shall  monitor  the  degree  and   continued
  existence  of  competition  and  the effectiveness of flexible rating in
  this state on an on-going basis. In doing so, the  superintendent  shall
  utilize the following standards or factors:
    (1)  the  standards  contained  in  section two thousand three hundred
  eight of this article;
    (2)  existing  relevant  information,  analytical  systems  and  other
  sources, or rely on some combination thereof;
    (3)  the  number  of insurers or group of affiliated insurers actively
  engaged in providing coverage, taking into  account  the  specialization
  traditionally required for insurance in the particular rating territory;
    (4)   measures   of   market   concentration  and  changes  of  market
  concentration   over   time,   which   may   include    the    use    of
  Herfindahl-Hirschman  Index  (HHI)  and  the United States Department of
  Justice merge guidelines for an unconcentrated market ease of entry, and
  the existence of financial or economical barriers that could prevent new
  firms from entering the market;
    (5) the extent to which any insurer or group  of  affiliated  insurers
  controls  all or a dominant portion of the market has actively sought to
  prevent competition;
    (6) whether  the  total  number  of  companies  writing  the  line  of
  insurance in this state is sufficient to provide multiple options;
    (7) the availability of insurance coverage to consumers;
    (8)  the opportunities available to consumers in the market to acquire
  pricing and other consumer information; and
    (9) any other factions relevant to inquiry.
    Such activities may be conducted internally within the department,  in
  cooperation  with  other  state  insurance  departments, through outside
  contractors and/or in any other appropriate manner.