§ 27-44-10 - Insurers and rating and advisory organizations – Prohibited activity.
SECTION 27-44-10
§ 27-44-10 Insurers and rating andadvisory organizations – Prohibited activity. – (a) No insurer or rating or advisory organization shall attempt to monopolizeor combine or conspire with any other person to monopolize an insurance market.
(b) No insurer shall agree with any other insurer or with anyrating or advisory organization to adhere to or to use any rate, rating plan,rating schedule, rating rule, policy or bond forms, rate classifications, rateterritories, underwriting rules, surveys, inspections, or similar materials,except as needed to develop statistical plans permitted by this chapter.Notwithstanding the foregoing, nothing contained in this chapter shall apply toany pools;
(2) The fact that two (2) or more insurers, whether or notmembers or subscribers of a rating organization, use consistently orintermittently, the same rates, rating plans, rating schedules, rating rules,policy or bond forms, rate classifications, rate territories, underwritingrules, surveys or inspections, or similar materials is not sufficient in itselfto support a finding that an agreement exists, and may be used only for thepurpose of supplementing or explaining other evidence of the existence of anagreement;
(3) Two (2) or more insurers having a common ownership oroperating in this state under common management or control may act in concertbetween or among themselves with respect to any matters pertaining to thoseactivities authorized in this chapter as if they constituted a single insurer.
(c) No insurer or rating or advisory organization shall makeany arrangement with any other insurer, rating or advisory organization, orother person which has the purpose or effect of restraining trade unreasonablyor of substantially lessening competition in the business of insurance.
(d) No advisory organization shall engage in any unfair orunreasonable practice. If after a hearing the director finds that any activityor practice of an advisory organization is unfair, unreasonable, orinconsistent with the requirements of this chapter, the director shall specifythe finding in an order requiring the discontinuance of the activity orpractice.