State Codes and Statutes

Statutes > California > Ins > 1855-1855.5

INSURANCE CODE
SECTION 1855-1855.5



1855.  No advisory organization shall conduct its operations in this
State unless and until it has filed with the commissioner (a) a copy
of its constitution, articles of incorporation, agreement or
association, and of its by-laws, or rules and regulations governing
its activities, all duly certified by the custodian of the originals
thereof, (b) a list of its members and subscribers, and (c) the name
and address of a resident of this State upon whom notices or orders
of the commissioner or process may be served.
   Every such advisory organization shall notify the commissioner
promptly of every change in its constitution, its articles of
incorporation, agreement or association, and of its by-laws, rules
and regulations governing the conduct of its business; its list of
members and subscribers; and the name and address of the resident of
this State designated by it upon whom notices or orders of the
commissioner or process affecting such organization may be served.
   No such advisory organization shall engage in any unfair or
unreasonable practice with respect to such activities.



1855.1.  It is the intent of the Legislature in enacting this
article to promote competition in the insurance business and provide
a means whereby insurance consumers can more easily comparison shop
for insurance coverage by allowing insurance advisory organizations
to develop and draft for use by all insurers in California common
forms, coverages, endorsements, and manuals for insurance policies
and bonds.



1855.2.  As used in this article, "advisory organization" means
every group, association, or other organization of insurers, whether
located within or outside of this state, that develops and prepares
policy or bond forms, or manuals, for use by admitted insurers,
carries on research relative to the development and preparation of
policy and bond forms, and acts in an advisory, as distinguished from
a ratemaking, capacity.
   Every advisory organization shall, prior to operation, file with
the commissioner (a) a copy or its constitution, its articles of
agreement or association, or its certificate of incorporation, and
its bylaws, rules, and regulations governing its activities, (b) a
list of its members, and (c) the name and address of a resident of
this state upon whom notices or orders of the commissioner or process
issued at his or her direction may be served. Every advisory
organization shall thereafter promptly notify the commissioner of
every material change in the documents required to be filed with the
commissioner.



1855.3.  Two or more insurers may cooperate with and act in concert
with others as members of an advisory organization with respect to
any matters pertaining to the preparation or making of insurance
policy or bond forms, or manuals, or carrying on of research relative
to the preparation and development of policy or bond forms, or
manuals.



1855.4.  Members and subscribers of advisory organizations may use
the policy or bond forms, or manuals, of advisory organizations,
either consistently or intermittently, but, except for insurers
having common ownership or management, shall not agree with each
other or others to adhere thereto or violate the antitrust or unfair
business practice laws. The fact that two or more admitted insurers
are members or subscribers of an advisory organization, or the fact
that they use, either consistently or intermittently, the policy or
bond forms, or manuals, prepared by an advisory organization, shall
not be sufficient evidence, alone or in conjunction with each other,
to support a finding either that an agreement to adhere to those
forms or manuals exists or that an insurer or advisory organization
is violating the antitrust or unfair business practice laws. These
facts may be used only for the purpose of supplementing or explaining
other evidence of the existence of an agreement to adhere to those
forms or manuals or the existence of the violation of the antitrust
or unfair business practice laws. No act, agreement, or practice
involving the activities of an advisory organization, an insurer's
participation in those activities, or the use of an advisory
organization's products or services shall be found to be unfair or
unreasonable under this code because it is uncompetitive unless
proven by a preponderance of the evidence that the act, agreement, or
practice violates the antitrust or unfair business practice laws.
Findings of this nature that are made in support of an order or
regulation of the commissioner shall be determined and enforced under
Article 7 (commencing with Section 1858) of this chapter. As used in
this section, "antitrust laws" means Part 2 (commencing with Section
16600) of the Business and Professions Code, and "unfair business
practice laws" means Part 3 (commencing with Section 17500) of the
Business and Professions Code.



1855.5.  (a) An advisory organization may prepare and distribute
insurance policy or bond forms, and manuals, including policy writing
rules, rating plans, classification codes and descriptions,
territory codes and descriptions, prospective loss costs, and rules
that include factors and relativities such as increased limits
factors, classification relativities, or similar factors, if, prior
to being used by insurers, they are submitted in writing to the
commissioner for his or her consideration and approval, together with
any information the commissioner may reasonably require. All of
these documents shall be available for public inspection at the
office of the commissioner. The commissioner shall approve advisory
organization policy forms or bond forms, or manuals, that are not
found by him or her to be unfair, unreasonable, or violate the
provisions of this code, including Sections 1861.02 and 1861.05.
   (b) Upon submission of any advisory organization policy forms or
bond forms, or manuals, the commissioner may review them, and if
after a hearing, at which representatives of consumers and other
interested parties may participate, upon not less than 10 days'
notice to an advisory organization he or she finds that the contents
of policy forms or bond forms, or manuals, are unfair or
unreasonable, or violate the provisions of this code, he or she may
issue a written order to the advisory organization specifying in what
respect the contents of the policy forms, bond forms, or manuals,
are unfair or unreasonable or violate the provisions of this code and
disapprove the use of the forms or manuals.
   (c) Notwithstanding the provisions of this section, if the
commissioner fails to act within 90 days of the submission of a
proposed policy or bond form, or manual by an advisory organization,
the policy or bond form, or manual, shall be deemed approved.
   (d) For good cause, and after a hearing, at which representatives
of consumers and other interested parties may participate, upon not
less than 10 days' notice to the advisory organization, the
commissioner may revoke approval of any policy form or bond form or
manual only upon his or her finding grounds that would permit
disapproval of the policy or bond form, or manual, if submitted for
approval at the time of the revocation hearing.
   (e) Nothing in this chapter shall be interpreted to allow an
advisory organization to set or establish rates or to issue any
manual that contains final rates for any insurance coverage, policy
endorsement, or bond.

State Codes and Statutes

Statutes > California > Ins > 1855-1855.5

INSURANCE CODE
SECTION 1855-1855.5



1855.  No advisory organization shall conduct its operations in this
State unless and until it has filed with the commissioner (a) a copy
of its constitution, articles of incorporation, agreement or
association, and of its by-laws, or rules and regulations governing
its activities, all duly certified by the custodian of the originals
thereof, (b) a list of its members and subscribers, and (c) the name
and address of a resident of this State upon whom notices or orders
of the commissioner or process may be served.
   Every such advisory organization shall notify the commissioner
promptly of every change in its constitution, its articles of
incorporation, agreement or association, and of its by-laws, rules
and regulations governing the conduct of its business; its list of
members and subscribers; and the name and address of the resident of
this State designated by it upon whom notices or orders of the
commissioner or process affecting such organization may be served.
   No such advisory organization shall engage in any unfair or
unreasonable practice with respect to such activities.



1855.1.  It is the intent of the Legislature in enacting this
article to promote competition in the insurance business and provide
a means whereby insurance consumers can more easily comparison shop
for insurance coverage by allowing insurance advisory organizations
to develop and draft for use by all insurers in California common
forms, coverages, endorsements, and manuals for insurance policies
and bonds.



1855.2.  As used in this article, "advisory organization" means
every group, association, or other organization of insurers, whether
located within or outside of this state, that develops and prepares
policy or bond forms, or manuals, for use by admitted insurers,
carries on research relative to the development and preparation of
policy and bond forms, and acts in an advisory, as distinguished from
a ratemaking, capacity.
   Every advisory organization shall, prior to operation, file with
the commissioner (a) a copy or its constitution, its articles of
agreement or association, or its certificate of incorporation, and
its bylaws, rules, and regulations governing its activities, (b) a
list of its members, and (c) the name and address of a resident of
this state upon whom notices or orders of the commissioner or process
issued at his or her direction may be served. Every advisory
organization shall thereafter promptly notify the commissioner of
every material change in the documents required to be filed with the
commissioner.



1855.3.  Two or more insurers may cooperate with and act in concert
with others as members of an advisory organization with respect to
any matters pertaining to the preparation or making of insurance
policy or bond forms, or manuals, or carrying on of research relative
to the preparation and development of policy or bond forms, or
manuals.



1855.4.  Members and subscribers of advisory organizations may use
the policy or bond forms, or manuals, of advisory organizations,
either consistently or intermittently, but, except for insurers
having common ownership or management, shall not agree with each
other or others to adhere thereto or violate the antitrust or unfair
business practice laws. The fact that two or more admitted insurers
are members or subscribers of an advisory organization, or the fact
that they use, either consistently or intermittently, the policy or
bond forms, or manuals, prepared by an advisory organization, shall
not be sufficient evidence, alone or in conjunction with each other,
to support a finding either that an agreement to adhere to those
forms or manuals exists or that an insurer or advisory organization
is violating the antitrust or unfair business practice laws. These
facts may be used only for the purpose of supplementing or explaining
other evidence of the existence of an agreement to adhere to those
forms or manuals or the existence of the violation of the antitrust
or unfair business practice laws. No act, agreement, or practice
involving the activities of an advisory organization, an insurer's
participation in those activities, or the use of an advisory
organization's products or services shall be found to be unfair or
unreasonable under this code because it is uncompetitive unless
proven by a preponderance of the evidence that the act, agreement, or
practice violates the antitrust or unfair business practice laws.
Findings of this nature that are made in support of an order or
regulation of the commissioner shall be determined and enforced under
Article 7 (commencing with Section 1858) of this chapter. As used in
this section, "antitrust laws" means Part 2 (commencing with Section
16600) of the Business and Professions Code, and "unfair business
practice laws" means Part 3 (commencing with Section 17500) of the
Business and Professions Code.



1855.5.  (a) An advisory organization may prepare and distribute
insurance policy or bond forms, and manuals, including policy writing
rules, rating plans, classification codes and descriptions,
territory codes and descriptions, prospective loss costs, and rules
that include factors and relativities such as increased limits
factors, classification relativities, or similar factors, if, prior
to being used by insurers, they are submitted in writing to the
commissioner for his or her consideration and approval, together with
any information the commissioner may reasonably require. All of
these documents shall be available for public inspection at the
office of the commissioner. The commissioner shall approve advisory
organization policy forms or bond forms, or manuals, that are not
found by him or her to be unfair, unreasonable, or violate the
provisions of this code, including Sections 1861.02 and 1861.05.
   (b) Upon submission of any advisory organization policy forms or
bond forms, or manuals, the commissioner may review them, and if
after a hearing, at which representatives of consumers and other
interested parties may participate, upon not less than 10 days'
notice to an advisory organization he or she finds that the contents
of policy forms or bond forms, or manuals, are unfair or
unreasonable, or violate the provisions of this code, he or she may
issue a written order to the advisory organization specifying in what
respect the contents of the policy forms, bond forms, or manuals,
are unfair or unreasonable or violate the provisions of this code and
disapprove the use of the forms or manuals.
   (c) Notwithstanding the provisions of this section, if the
commissioner fails to act within 90 days of the submission of a
proposed policy or bond form, or manual by an advisory organization,
the policy or bond form, or manual, shall be deemed approved.
   (d) For good cause, and after a hearing, at which representatives
of consumers and other interested parties may participate, upon not
less than 10 days' notice to the advisory organization, the
commissioner may revoke approval of any policy form or bond form or
manual only upon his or her finding grounds that would permit
disapproval of the policy or bond form, or manual, if submitted for
approval at the time of the revocation hearing.
   (e) Nothing in this chapter shall be interpreted to allow an
advisory organization to set or establish rates or to issue any
manual that contains final rates for any insurance coverage, policy
endorsement, or bond.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Ins > 1855-1855.5

INSURANCE CODE
SECTION 1855-1855.5



1855.  No advisory organization shall conduct its operations in this
State unless and until it has filed with the commissioner (a) a copy
of its constitution, articles of incorporation, agreement or
association, and of its by-laws, or rules and regulations governing
its activities, all duly certified by the custodian of the originals
thereof, (b) a list of its members and subscribers, and (c) the name
and address of a resident of this State upon whom notices or orders
of the commissioner or process may be served.
   Every such advisory organization shall notify the commissioner
promptly of every change in its constitution, its articles of
incorporation, agreement or association, and of its by-laws, rules
and regulations governing the conduct of its business; its list of
members and subscribers; and the name and address of the resident of
this State designated by it upon whom notices or orders of the
commissioner or process affecting such organization may be served.
   No such advisory organization shall engage in any unfair or
unreasonable practice with respect to such activities.



1855.1.  It is the intent of the Legislature in enacting this
article to promote competition in the insurance business and provide
a means whereby insurance consumers can more easily comparison shop
for insurance coverage by allowing insurance advisory organizations
to develop and draft for use by all insurers in California common
forms, coverages, endorsements, and manuals for insurance policies
and bonds.



1855.2.  As used in this article, "advisory organization" means
every group, association, or other organization of insurers, whether
located within or outside of this state, that develops and prepares
policy or bond forms, or manuals, for use by admitted insurers,
carries on research relative to the development and preparation of
policy and bond forms, and acts in an advisory, as distinguished from
a ratemaking, capacity.
   Every advisory organization shall, prior to operation, file with
the commissioner (a) a copy or its constitution, its articles of
agreement or association, or its certificate of incorporation, and
its bylaws, rules, and regulations governing its activities, (b) a
list of its members, and (c) the name and address of a resident of
this state upon whom notices or orders of the commissioner or process
issued at his or her direction may be served. Every advisory
organization shall thereafter promptly notify the commissioner of
every material change in the documents required to be filed with the
commissioner.



1855.3.  Two or more insurers may cooperate with and act in concert
with others as members of an advisory organization with respect to
any matters pertaining to the preparation or making of insurance
policy or bond forms, or manuals, or carrying on of research relative
to the preparation and development of policy or bond forms, or
manuals.



1855.4.  Members and subscribers of advisory organizations may use
the policy or bond forms, or manuals, of advisory organizations,
either consistently or intermittently, but, except for insurers
having common ownership or management, shall not agree with each
other or others to adhere thereto or violate the antitrust or unfair
business practice laws. The fact that two or more admitted insurers
are members or subscribers of an advisory organization, or the fact
that they use, either consistently or intermittently, the policy or
bond forms, or manuals, prepared by an advisory organization, shall
not be sufficient evidence, alone or in conjunction with each other,
to support a finding either that an agreement to adhere to those
forms or manuals exists or that an insurer or advisory organization
is violating the antitrust or unfair business practice laws. These
facts may be used only for the purpose of supplementing or explaining
other evidence of the existence of an agreement to adhere to those
forms or manuals or the existence of the violation of the antitrust
or unfair business practice laws. No act, agreement, or practice
involving the activities of an advisory organization, an insurer's
participation in those activities, or the use of an advisory
organization's products or services shall be found to be unfair or
unreasonable under this code because it is uncompetitive unless
proven by a preponderance of the evidence that the act, agreement, or
practice violates the antitrust or unfair business practice laws.
Findings of this nature that are made in support of an order or
regulation of the commissioner shall be determined and enforced under
Article 7 (commencing with Section 1858) of this chapter. As used in
this section, "antitrust laws" means Part 2 (commencing with Section
16600) of the Business and Professions Code, and "unfair business
practice laws" means Part 3 (commencing with Section 17500) of the
Business and Professions Code.



1855.5.  (a) An advisory organization may prepare and distribute
insurance policy or bond forms, and manuals, including policy writing
rules, rating plans, classification codes and descriptions,
territory codes and descriptions, prospective loss costs, and rules
that include factors and relativities such as increased limits
factors, classification relativities, or similar factors, if, prior
to being used by insurers, they are submitted in writing to the
commissioner for his or her consideration and approval, together with
any information the commissioner may reasonably require. All of
these documents shall be available for public inspection at the
office of the commissioner. The commissioner shall approve advisory
organization policy forms or bond forms, or manuals, that are not
found by him or her to be unfair, unreasonable, or violate the
provisions of this code, including Sections 1861.02 and 1861.05.
   (b) Upon submission of any advisory organization policy forms or
bond forms, or manuals, the commissioner may review them, and if
after a hearing, at which representatives of consumers and other
interested parties may participate, upon not less than 10 days'
notice to an advisory organization he or she finds that the contents
of policy forms or bond forms, or manuals, are unfair or
unreasonable, or violate the provisions of this code, he or she may
issue a written order to the advisory organization specifying in what
respect the contents of the policy forms, bond forms, or manuals,
are unfair or unreasonable or violate the provisions of this code and
disapprove the use of the forms or manuals.
   (c) Notwithstanding the provisions of this section, if the
commissioner fails to act within 90 days of the submission of a
proposed policy or bond form, or manual by an advisory organization,
the policy or bond form, or manual, shall be deemed approved.
   (d) For good cause, and after a hearing, at which representatives
of consumers and other interested parties may participate, upon not
less than 10 days' notice to the advisory organization, the
commissioner may revoke approval of any policy form or bond form or
manual only upon his or her finding grounds that would permit
disapproval of the policy or bond form, or manual, if submitted for
approval at the time of the revocation hearing.
   (e) Nothing in this chapter shall be interpreted to allow an
advisory organization to set or establish rates or to issue any
manual that contains final rates for any insurance coverage, policy
endorsement, or bond.