379.323. Rating organization defined--license, application for, contents--subscribers, how treated.

Rating organization defined--license, application for,contents--subscribers, how treated.

379.323. 1. A "rating organization" is an individual,partnership, corporation or unincorporated association other thanan insurer located within or without this state, who or which hasas its primary object and purpose the making and filing of rates,rating plans, rating systems or rules relating thereto, and whoor which may also examine policies, daily reports, binders,renewal certificates, endorsements and other evidences ofinsurance or the cancellation thereof for any member orsubscriber requesting such auditing service.

2. Such a rating organization shall make application to thedirector for license as a rating organization for such kinds ofinsurance, or subdivisions, or classes or risk, or parts orcombinations of any of the foregoing as are specified in itsapplication and shall file therewith:

(1) A copy of its constitution, its articles of agreement orassociation or its certificate of incorporation, and of itsbylaws, rules and regulations governing the conduct of itsbusiness;

(2) A list of its members and subscribers;

(3) The name and address of a resident of this state uponwhom notices or orders of the director or process affecting suchrating organization may be served;

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

(5) An agreement that the director may examine such ratingorganization in accordance with the provisions of section379.343.

3. If the director finds that the applicant is competent,trustworthy, and otherwise qualified to act as a ratingorganization, and that its constitution, articles of agreement orassociation or certificate of incorporation, and its bylaws,rules and regulations governing the conduct of its businessconform to the requirements of law, he shall issue a licensespecifying the kinds of insurance, or subdivisions, or classes orrisk, or parts or combinations of any of the foregoing for whichthe applicant is authorized to act as a rating organization.Every such application shall be granted or denied in whole or inpart by the director within sixty days of the date of its filingwith him. Licenses issued pursuant to this section shall remainin effect for three years unless sooner suspended or revoked bythe director. The fee for the license is twenty-five dollars.Licenses issued pursuant to this section may be suspended orrevoked by the director, after hearing upon notice, in the eventthe rating organization ceases to meet the requirements of thissubsection. Every rating organization shall notify the directorpromptly of every change in:

(1) Its constitution, its articles of agreement orassociation, or its certificate of incorporation, and its bylaws,rules and regulations governing the conduct of its business;

(2) Its list of members and subscribers; and,

(3) The name and address of the resident of this statedesignated by it upon whom notices or orders of the director orprocess affecting such rating organization may be served.

4. Subject to rules and regulations which have been approvedby the director as reasonable, each rating organization shallpermit any insurer, not a member, to be a subscriber to itsservices for any one or more of the kinds of insurance,subdivisions, or classes or risk or parts or combinations of anyof the foregoing for which it is authorized to act as anorganization. Notice of proposed changes in such rules andregulations shall be given to subscribers. Each ratingorganization shall furnish its services without discrimination toits members and subscribers. The reasonableness of any rule orregulation in its application to subscribers, or the refusal ofany rating organization to admit an insurer as a subscriber,shall, at the request of any subscriber or any such insurer, bereviewed by the director at a hearing held upon at least tendays' written notice to such rating organization and to suchsubscriber or insurer. If the director finds that such rule orregulation is unreasonable in its application to subscribers, heshall order that such rule or regulation shall not be applicableto subscribers. If the rating organization fails to grant orreject an insurer's application for subscribership within thirtydays after it was made, the insurer may request a review by thedirector as if the application had been rejected. If thedirector finds that the insurer has been refused admittance tothe rating organization as a subscriber without justification, heshall order the rating organization to admit the insurer as asubscriber. If he finds that the action of the ratingorganization was justified, he shall make an order affirming itsaction.

5. No rating organization shall adopt any rule the effect ofwhich would be to prohibit or regulate the payment of dividendsor savings allowed or returned by insurers to their policyholdersor members.

6. Cooperation among rating organizations or among ratingorganizations and insurers in ratemaking or in other matterswithin the scope of section 379.017 and sections 379.316 to379.361 is hereby authorized, provided the filings resulting fromsuch cooperation are subject to all the provisions of section379.017 and sections 379.316 to 379.361 which are applicable tofilings generally. The director may review such cooperativeactivities and practices and if, after a hearing, he finds thatany such activity or practice is unfair or unreasonable, orotherwise inconsistent with the provisions of section 379.017 andsections 379.316 to 379.361, he may issue a written orderspecifying in what respects such activity or practice is unfairor unreasonable or otherwise inconsistent with the provisions ofsection 379.017 and sections 379.316 to 379.361, and requiringthe discontinuance of such activity or practice.

7. Any rating organization may subscribe for or purchaseactuarial, technical or other services, and such services shallbe available to all members and subscribers withoutdiscrimination.

8. A "member of a rating organization" means an insurerentitled to participate in its management and electing toexercise its right to so participate.

(L. 1972 S.B. 547 § 5)