Article 9.--GENERAL PROVISIONS RELATING TO FIRE INSURANCE COMPANIES
40-956.Same; rating organizations; licensure, fee, suspension orrevocation; subscriber discrimination and certain rules prohibited;examinations, costs; authorized cooperation and transactions.(a) Any corporation, association, partnership or individualwhetherlocated in or out of the state, may apply for license as a rating organizationfor such kinds of insurance or subdivisions thereof as are specified in itsapplication and shall file therewith: (1) a copy of its constitution,articles of agreement orassociation or certificate of incorporation, and its bylaws and rules governingthe conduct of its business; (2) a list of its members and subscribers; (3) thename and address of a resident of the state upon whom service of process ororders of the commissioner may be served and an irrevocable agreement to acceptsuch service or notices; and (4) a statement of its qualification as a ratingorganization. Every rating organization shall notify the commissioner promptlyof every change in its organizational structure, members or subscribers and theperson upon whom service or notices may be made. If the commissioner finds theapplicant is qualified, the commissioner shall issue a licensespecifying the kinds of insurance or subdivisions thereof for which theapplicant is authorized to act as a rating organization. Every such applicationshall be granted or denied inwhole or in part by the commissioner within 60 days of the date of its filing.Licenses issued pursuant to this section shall continue in force until May 1next after their date unless suspended or revoked by the commissioner. The feefor such license shall be $25 annually. Licenses issued pursuant to thissection may be suspended or revoked by the commissioner, after hearing uponnotice, in the event the rating organizationceases to meet the requirements of this section.
(b) Every rating organization shall furnish its rating services withoutdiscrimination to its members and subscribers. Subject to rules which have beenapproved by the commissioner as reasonable, each rating organizationshall permit any insurer or group pool, not a member, to be a subscriber to itsrating service forany kind of insurance or subdivision thereof for which it is authorized to actas a rating organization. The reasonableness of any rule in its application tosubscribers, or the refusal of any rating organization to admit an insurer orgroup pool as a subscriber, at the request of any subscriber, pool orany insurer shall bereviewed by the commissioner at a hearing.
(c) No rating organization shall adopt any rule, the effect of which wouldbe to prohibit or regulate the payment of dividends, savings or unabsorbedpremium deposits allowed or returned by insurers to their policyholders,members or subscribers.
(d) The commissioner, at least once in five years, shall make or cause to bemade an examination of each rating organization licensed in this state. Thereasonable costs of such examination shall be paid by the rating organizationexamined, upon presentation to it of a detailed account of such cost. Theofficers, managers, agents and employees of such rating organization may beexamined under oath and shall exhibit all books,records, accounts, documents or agreements governing its method of operation.The commissioner may waive such examination upon proof such rating organizationhas, within a reasonably recent period, been examined by the insurancesupervisory official of another state, and upon filing with the commissioner acopy of the report of such examination.
(e) Cooperation among rating organizations or among rating organizations andinsurers in rate making or in other matters within the scope of this act ishereby authorized, provided the filings resulting from such cooperation aresubject to all the provisions of this act which are applicable to filingsgenerally. Thecommissioner may review such cooperative activities and practices and if, aftera hearing, the commissioner finds any such activity or practice is unfair,unreasonable or otherwise inconsistent with this act or other provision of theinsurance laws of this state, the commissioner may issue a written orderrequiring discontinuance of such activities or practices.
(f) Any rating organization may provide for the examination of policies,daily reports, binders and other transaction with its members or subscribers,providing it makes reasonable rules governing those activities,which rules shall be approved by the commissioner. Such rules shall contain aprovision that in the event any insurer does not within 60 days furnishsatisfactory evidence to the rating organization of the correction of any erroror omissions 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.
(g) Any rating organization may subscribe for or purchase actuarial,technical or other services, and such services shall be available to allmembers and subscribers without discrimination. Any rating organizationmay collect, compile and distribute past and current premiums of individualinsurers.
Article 9.--GENERAL PROVISIONS RELATING TO FIRE INSURANCE COMPANIES
40-956.Same; rating organizations; licensure, fee, suspension orrevocation; subscriber discrimination and certain rules prohibited;examinations, costs; authorized cooperation and transactions.(a) Any corporation, association, partnership or individualwhetherlocated in or out of the state, may apply for license as a rating organizationfor such kinds of insurance or subdivisions thereof as are specified in itsapplication and shall file therewith: (1) a copy of its constitution,articles of agreement orassociation or certificate of incorporation, and its bylaws and rules governingthe conduct of its business; (2) a list of its members and subscribers; (3) thename and address of a resident of the state upon whom service of process ororders of the commissioner may be served and an irrevocable agreement to acceptsuch service or notices; and (4) a statement of its qualification as a ratingorganization. Every rating organization shall notify the commissioner promptlyof every change in its organizational structure, members or subscribers and theperson upon whom service or notices may be made. If the commissioner finds theapplicant is qualified, the commissioner shall issue a licensespecifying the kinds of insurance or subdivisions thereof for which theapplicant is authorized to act as a rating organization. Every such applicationshall be granted or denied inwhole or in part by the commissioner within 60 days of the date of its filing.Licenses issued pursuant to this section shall continue in force until May 1next after their date unless suspended or revoked by the commissioner. The feefor such license shall be $25 annually. Licenses issued pursuant to thissection may be suspended or revoked by the commissioner, after hearing uponnotice, in the event the rating organizationceases to meet the requirements of this section.
(b) Every rating organization shall furnish its rating services withoutdiscrimination to its members and subscribers. Subject to rules which have beenapproved by the commissioner as reasonable, each rating organizationshall permit any insurer or group pool, not a member, to be a subscriber to itsrating service forany kind of insurance or subdivision thereof for which it is authorized to actas a rating organization. The reasonableness of any rule in its application tosubscribers, or the refusal of any rating organization to admit an insurer orgroup pool as a subscriber, at the request of any subscriber, pool orany insurer shall bereviewed by the commissioner at a hearing.
(c) No rating organization shall adopt any rule, the effect of which wouldbe to prohibit or regulate the payment of dividends, savings or unabsorbedpremium deposits allowed or returned by insurers to their policyholders,members or subscribers.
(d) The commissioner, at least once in five years, shall make or cause to bemade an examination of each rating organization licensed in this state. Thereasonable costs of such examination shall be paid by the rating organizationexamined, upon presentation to it of a detailed account of such cost. Theofficers, managers, agents and employees of such rating organization may beexamined under oath and shall exhibit all books,records, accounts, documents or agreements governing its method of operation.The commissioner may waive such examination upon proof such rating organizationhas, within a reasonably recent period, been examined by the insurancesupervisory official of another state, and upon filing with the commissioner acopy of the report of such examination.
(e) Cooperation among rating organizations or among rating organizations andinsurers in rate making or in other matters within the scope of this act ishereby authorized, provided the filings resulting from such cooperation aresubject to all the provisions of this act which are applicable to filingsgenerally. Thecommissioner may review such cooperative activities and practices and if, aftera hearing, the commissioner finds any such activity or practice is unfair,unreasonable or otherwise inconsistent with this act or other provision of theinsurance laws of this state, the commissioner may issue a written orderrequiring discontinuance of such activities or practices.
(f) Any rating organization may provide for the examination of policies,daily reports, binders and other transaction with its members or subscribers,providing it makes reasonable rules governing those activities,which rules shall be approved by the commissioner. Such rules shall contain aprovision that in the event any insurer does not within 60 days furnishsatisfactory evidence to the rating organization of the correction of any erroror omissions 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.
(g) Any rating organization may subscribe for or purchase actuarial,technical or other services, and such services shall be available to allmembers and subscribers without discrimination. Any rating organizationmay collect, compile and distribute past and current premiums of individualinsurers.
Article 9.--GENERAL PROVISIONS RELATING TO FIRE INSURANCE COMPANIES
40-956.Same; rating organizations; licensure, fee, suspension orrevocation; subscriber discrimination and certain rules prohibited;examinations, costs; authorized cooperation and transactions.(a) Any corporation, association, partnership or individualwhetherlocated in or out of the state, may apply for license as a rating organizationfor such kinds of insurance or subdivisions thereof as are specified in itsapplication and shall file therewith: (1) a copy of its constitution,articles of agreement orassociation or certificate of incorporation, and its bylaws and rules governingthe conduct of its business; (2) a list of its members and subscribers; (3) thename and address of a resident of the state upon whom service of process ororders of the commissioner may be served and an irrevocable agreement to acceptsuch service or notices; and (4) a statement of its qualification as a ratingorganization. Every rating organization shall notify the commissioner promptlyof every change in its organizational structure, members or subscribers and theperson upon whom service or notices may be made. If the commissioner finds theapplicant is qualified, the commissioner shall issue a licensespecifying the kinds of insurance or subdivisions thereof for which theapplicant is authorized to act as a rating organization. Every such applicationshall be granted or denied inwhole or in part by the commissioner within 60 days of the date of its filing.Licenses issued pursuant to this section shall continue in force until May 1next after their date unless suspended or revoked by the commissioner. The feefor such license shall be $25 annually. Licenses issued pursuant to thissection may be suspended or revoked by the commissioner, after hearing uponnotice, in the event the rating organizationceases to meet the requirements of this section.
(b) Every rating organization shall furnish its rating services withoutdiscrimination to its members and subscribers. Subject to rules which have beenapproved by the commissioner as reasonable, each rating organizationshall permit any insurer or group pool, not a member, to be a subscriber to itsrating service forany kind of insurance or subdivision thereof for which it is authorized to actas a rating organization. The reasonableness of any rule in its application tosubscribers, or the refusal of any rating organization to admit an insurer orgroup pool as a subscriber, at the request of any subscriber, pool orany insurer shall bereviewed by the commissioner at a hearing.
(c) No rating organization shall adopt any rule, the effect of which wouldbe to prohibit or regulate the payment of dividends, savings or unabsorbedpremium deposits allowed or returned by insurers to their policyholders,members or subscribers.
(d) The commissioner, at least once in five years, shall make or cause to bemade an examination of each rating organization licensed in this state. Thereasonable costs of such examination shall be paid by the rating organizationexamined, upon presentation to it of a detailed account of such cost. Theofficers, managers, agents and employees of such rating organization may beexamined under oath and shall exhibit all books,records, accounts, documents or agreements governing its method of operation.The commissioner may waive such examination upon proof such rating organizationhas, within a reasonably recent period, been examined by the insurancesupervisory official of another state, and upon filing with the commissioner acopy of the report of such examination.
(e) Cooperation among rating organizations or among rating organizations andinsurers in rate making or in other matters within the scope of this act ishereby authorized, provided the filings resulting from such cooperation aresubject to all the provisions of this act which are applicable to filingsgenerally. Thecommissioner may review such cooperative activities and practices and if, aftera hearing, the commissioner finds any such activity or practice is unfair,unreasonable or otherwise inconsistent with this act or other provision of theinsurance laws of this state, the commissioner may issue a written orderrequiring discontinuance of such activities or practices.
(f) Any rating organization may provide for the examination of policies,daily reports, binders and other transaction with its members or subscribers,providing it makes reasonable rules governing those activities,which rules shall be approved by the commissioner. Such rules shall contain aprovision that in the event any insurer does not within 60 days furnishsatisfactory evidence to the rating organization of the correction of any erroror omissions 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.
(g) Any rating organization may subscribe for or purchase actuarial,technical or other services, and such services shall be available to allmembers and subscribers without discrimination. Any rating organizationmay collect, compile and distribute past and current premiums of individualinsurers.
