20-361. Licensing of rating organizations

413 words·~2 min read·/az/title-20/20-361

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. A corporation, an unincorporated association, a partnership or an individual, whether located within or outside this state, may apply to the director for a license as a rating organization for insurance subject to this article and shall file all of the following with the director:

1. A copy of its constitution, its articles of agreement or association or its certificate of incorporation and a copy of its bylaws, rules and regulations governing the conduct of its business.

2. A list of its members.

3. The name and address of a resident of this state for service of process, notices and orders.

4. A statement of its qualifications as a rating organization.

5. A financial statement that is certified by an officer of the applicant, that is on a form acceptable to the director and that includes financial information that is current as of not more than ninety days before the date the application is filed with the director. The financial statement shall include an income statement and a balance sheet that is prepared according to generally accepted accounting principles and that is for the two years immediately preceding the date of the financial statement. The applicant shall not submit consolidated income statements or balance sheets.

6. A plan for the orderly and timely transfer to the designated statistical agent or the director of all data collected in accordance with the statistical plan in effect in this state from its member insurers in this state if the rating organization ceases to do business in this state.

B. If the director finds that the applicant is competent and otherwise qualified to act as a rating organization and that its constitution, articles of agreement or association or certificate of incorporation and its bylaws, rules and regulations governing the conduct of its business conform to the requirements of law, the director shall issue a license specifying the kinds of insurance, or subdivisions or classes of risks or parts or combinations thereof, for which the applicant is authorized to act as a rating organization. The director shall either grant or deny an application in whole or in part within sixty days after its filing.

C. Licenses issued pursuant to this section shall remain in effect until suspended or revoked by the director or the director has accepted the surrender of the license. The director may suspend or revoke a license after notice and a hearing if the rating organization ceases to meet the requirements of this section.