BLAIR LEE III, Acting Governor                        2343

Administration may require the minor to attend the [driver's
rehabilitation clinic that the Administration provides]
ADMINISTRATION'S DRIVER IMPROVEMENT PROGRAM.

(b)        If a political subdivision of this State provides
its own traffic school, the court may require the minor to
attend the local traffic school instead of the
[Administration's         clinic] ADMINISTRATION'S DRIVER
IMPROVEMENT PROGRAM.

Article 48A — Insurance Code

242.

(c)    All rates shall be made in accordance with the
following principles:

(1)    Due consideration shall be given to (i)
past and prospective loss experience within and outside this
State; (ii) conflagration and catastrophe hazards, if any;
(iii) past and prospective expenses both countrywide and
those specially applicable to this State; (iv) underwriting
profits; (v) contingencies; (vi) investment income from
unearned premium reserve and reserve for losses; (vii)
dividends, savings or unabsorbed premium deposits allowed or
returned by insurers to their policyholders; (viii) and to
all other relevant factors within and outside this State.

(2)    Bates shall not be excessive, inadequate,
or unfairly discriminatory.

(3)    The systems of expense provisions included
in the rates for use by any insurer or group of insurers may
differ from those of ether insurers or groups of insurers to
reflect the requirements of the operating methods of any
such insurer, or group with respect to any kind of
insurance, or with respect to any subdivision or combination
thereof for which subdivision or combination separate
expense provisions are applicable.

(4)    Risks may be grouped by classifications for
the establishment of rates and minimum premiums.
Classification rates may be modified to produce rates for
individual risks in accordance with rating plans which
establish standards for measuring variations in hazards or
expense provisions, or both. The standards may measure any
difference among risks that are demonstrated objectively to
the Commissioner to have had a direct and substantial effect
upon losses or expenses. However, no rate may be based
partially or entirely on geographic area itself, as opposed
to underlying risk considerations, even though expressed in
geographic terms.

Any insurer providing a private passenger automobile
insurance policy shall provide the policyholder at the time
of issuance or renewal with a statement defining his rate
classifications. The statement shall be sufficiently clear
and specific so that a person of average intelligence can