20-387. Delegation of rate making and rate
filing obligations
A. An insurer may establish rates and supplementary rate information based on the
factors in section 20-384 using, if desired, the recommendations of an advisory
organization, or rates and supplementary rate information prepared by a rate service
organization, with average expense factors determined by the rate service organization or
with such modification for its own expense and loss experience as the credibility of that
experience allows.
B. An insurer may discharge its obligations pursuant to section 20-385 by giving
notice to the director that it uses rates and supplementary rate information prepared by
a designated rate service organization, with such information about modifications of the
rates as is necessary to inform the director. The insurer's rates and supplementary rate
information are those filed by the rate service organization, including any amendments to
the rate as filed, subject to the modifications filed by the insurer.
C. Licensed rate service organizations, advisory organizations and admitted
insurers are authorized to exchange information and experience data with rate service
organizations, advisory organizations and insurers in this and other states and may
consult with them with respect to rate making.
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