§431:14-107  Rating organizations.  (a) A corporation, an unincorporated association, a partnership, or an individual,whether located within or outside this State, may make application to thecommissioner for license as a rating organization for such classes of insuranceor subdivision or class of risk, or a part or combination thereof, as arespecified in its application and shall file the following with the application:

(1)  A copy of its constitution, charter, its articlesof organization, agreement, association, or incorporation, and a copy of itsbylaws, plan of operation, and any other rules and regulations governing theconduct of its business;

(2)  A list of its members and subscribers;

(3)  The name and address of a resident of this Stateupon whom notices or orders of the commissioner or process affecting the ratingorganization may be served;

(4)  A statement of its qualifications as a ratingorganization;

(5)  A biography of the ownership and management ofthe organization; and

(6)  Any other relevant information and documents thatthe commissioner may require.

(b)  If the commissioner finds that theapplicant is competent, trustworthy, and otherwise qualified to act as a ratingorganization and that its constitution, articles of organization, agreement,association, or incorporation, and its bylaws, rules and regulations governingthe conduct of its business conform to the requirements of law, thecommissioner shall issue a license specifying the classes of insurance orsubdivision or class of risk, or part or combination thereof, for which theapplicant is authorized to act as a rating organization.  Every suchapplication shall be granted or denied in whole or in part by the commissionerwithin sixty days of the date of its filing with the commissioner.  Licensesissued pursuant to this section shall remain in effect for three years unlesssooner suspended or revoked by the commissioner.  The fee for the license shallbe $37.50.  Licenses issued pursuant to this section may be suspended or revokedby the commissioner after hearing upon notice, in the event the ratingorganization ceases to meet the requirements of subsections (a) and (b).

(c)  Every rating organization shall notify thecommissioner promptly of every material change in the documents or informationfiled pursuant to subsection (a).

(d)  (1)  Subject to rules that have been approved bythe commissioner as reasonable, each rating organization shall permit anyinsurer, not a member, to be a subscriber to its rating services for any classof insurance or subdivision or class of risk, or a part or combination thereof,for which it is authorized to act as a rating organization.  Notice of proposedchanges in the rules shall be given to subscribers.  Each rating organizationshall furnish its rating services without discrimination to its members andsubscribers.

(2)  The reasonableness of any rule in its applicationto subscribers, or the refusal of any rating organization to admit an insureras a subscriber, shall, at the request of any subscriber or any such insurer,be reviewed by the commissioner at a hearing held upon at least ten days'written notice to such rating organization and to the subscriber or insurer. If the commissioner finds that the rule is unreasonable in its application tosubscribers, the commissioner shall order that the rule shall not be applicableto subscribers.

(3)  If the rating organization fails to grant orreject an insurer's application for subscribership within thirty days after itwas made, the insurer may request a review by the commissioner, in accordancewith paragraph (2), as if the application had been rejected.  If thecommissioner finds that the insurer has been refused admittance to the ratingorganization as a subscriber without justification, the commissioner shallorder the rating organization to admit the insurer as a subscriber.  If thecommissioner finds that the action of the rating organization was justified,the commissioner shall make an order affirming its action.

(e)  No rating organization shall adopt anyrule the effect of which would be to prohibit or regulate the payment ofdividends, savings or unabsorbed premium deposits allowed or returned byinsurers to their policyholders, members or subscribers.

(f)  Cooperation among rating organizations oramong rating organizations and insurers in matters within the scope of thisarticle is authorized, provided the filings resulting from the cooperation aresubject to all the provisions of this article which are applicable to filingsgenerally.  The commissioner may review the cooperative activities andpractices and if, after a hearing, the commissioner finds that any activity orpractice is unfair or unreasonable or otherwise inconsistent with this article,the commissioner may issue a written order specifying in what respects theactivity or practice is unfair or unreasonable or otherwise inconsistent withthis article, and requiring the discontinuance of the activity or practice.

(g)  Any rating organization may provide forthe examination of policies, daily reports, binders, renewal certificates,endorsements, or other evidences of insurance, or the cancellation thereof, andmay make reasonable rules governing their submission.  The rules shall containa provision that in the event any insurer does not within sixty days furnishsatisfactory evidence to the rating organization of the correction of any erroror omission previously called to its attention by the rating organization, itshall be the duty of the rating organization to notify the commissionerthereof.  All information submitted for examination shall be confidential.

(h)  Any rating organization may subscribe foror purchase actuarial, technical or other services, and such services shall beavailable to all members and subscribers without discrimination. [L 1987, c347, pt of §2; am L 1990, c 255, §11; am L 1993, c 205, §33; am L 2004, c 122,§62]