20-368

20-368. Advisory organizations

A. Every group, association or other organization of insurers, whether located
within or outside this state, which assists insurers which make their own filings or
rating organizations in rate making, by the collection and furnishing of loss or expense
statistics, or by the submission of recommendations, but which does not make filings
under this article, shall be known as an advisory organization.

B. Every advisory organization shall file with the director:

1. A copy of its constitution, its articles of agreement or association or its
certificate of incorporation and a copy of its bylaws, rules and regulations governing
its activities.

2. A list of its members.

3. The name and address of a resident of this state upon whom notices or orders of
the director or process affecting the advisory organization may be served.

4. An agreement that the director may examine the advisory organization in
accordance with the provisions of section 20-370.

C. If, after a hearing, the director finds that the furnishing of such information
or assistance involves any act or practice which is unfair or unreasonable or otherwise
inconsistent with the provisions of this article, he may issue a written order specifying
in what respects such act or practice is unfair or unreasonable or otherwise
inconsistent, and requiring the discontinuance of such act or practice.

D. No insurer which makes its own filings nor any rating organization shall support
its filings by statistics or adopt rate making recommendations furnished to it by an
advisory organization which has not complied with this section or with an order of the
director involving such statistics or recommendations issued under subsection C of this
section. If the director finds the insurer or rating organization to be in violation of
this subsection, he may issue an order requiring the discontinuance of the violation.