The initial premium for the converted policy for the first twelve (12) months and subsequent renewal premiums shall be determined in accordance with premium rates applicable to individually underwritten standard risks, to the age and class of risk of each person to be covered under the converted policy and to the type and amount of insurance provided. The experience under converted policies shall not be an acceptable basis for establishing rates for converted policies.

However, if an insurer experiences incurred losses, for a period of two (2) years, on conversion policies which have been in force for at least one (1) year, which exceed earned premiums, the insurer may file, with the Commissioner of Insurance, amended renewal rates for the subsequent year, which will produce a loss ratio of not less than one hundred percent 100%).