P&COhiomedium
Under R.C. 3937.02, when is an Ohio P&C rate considered 'excessive'?
AWhenever it exceeds the prior year's filed rate by more than 5%, as Ohio statute establishes a fixed year-over-year percentage ceiling on all P&C rate increases
BWhen any single policyholder believes the premium is too high
COnly when ODI has issued a press release labeling it excessive
When it is likely to produce a long-run profit unreasonably high in relation to the riskiness of the insurance
Why this is the answer
R.C. 3937.02 defines 'excessive' in actuarial terms: the rate is likely to produce a long-run profit that is unreasonably high in relation to the riskiness of the insurance. A fixed year-over-year percentage trigger, a single policyholder's subjective view, or an ODI press release are not the legal test. The ODI Director, after notice and hearing under R.C. Chapter 119, applies the standard to disapprove rates.
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