20-389. Rate service organizations; license; application

410 words·~2 min read·/az/title-20/20-389

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

A. A rate service organization shall not provide any service relating to the rates of any insurance subject to this article nor may any insurer utilize the service of such organization for such purposes unless the organization has obtained a license from the director.

B. No rate service organization may refuse to supply any services for which it is licensed in this state to any insurer authorized to do business in this state and offering to pay the fair and usual compensation for the services.

C. A rate service organization applying for a license shall include with its application:

1. A copy of its constitution, charter, articles of organization, agreement, association or incorporation and a copy of its bylaws and any other rules or regulations governing its activities.

2. A list of its members and subscribers.

3. The name and address of one or more residents of this state upon whom notices, process affecting it or orders of the director may be served.

4. A statement showing its technical qualifications for acting in the capacity for which it seeks a license.

5. Any other relevant information or documents the director may require.

D. If the director finds that the applicant and the natural persons through whom it acts are qualified to provide the services proposed and that all requirements of law are met, the director shall issue a license specifying the authorized activity of the applicant. The director shall not issue a license if the proposed activity would tend to establish a monopoly or to lessen or to destroy price competition. Licenses issued pursuant to this section remain in effect until the licensee withdraws from this state or until the license is suspended or revoked.

E. A rate service organization shall promptly file any amendment to a document required to be filed pursuant to this section. Failure to file any such amendment is a ground for suspension of the license during the period of noncompliance. Repeated failures to file such amendments are grounds for revocation of the license.

F. Pending its application to the director for a license to provide services as a rate service organization, every rating organization providing services in this state on the effective date of this section may continue to provide services after that date as a rate service organization subject to the provisions of this article. A rate service organization shall apply for a license within thirty days after the effective date of this article.