§ 27-44-8 - Licensing of rating organizations.
SECTION 27-44-8
§ 27-44-8 Licensing of ratingorganizations. – (a) License required. No rating organization shall provide any servicerelating to the rates of any insurance subject to this chapter, and no insurershall utilize the services of the organization for these purposes unless theorganization has obtained a license under subsection (c) of this section.
(b) Availability of services. No rating organizationshall refuse to supply any services for which it is licensed in this state toany insurer authorized to do business in this state and offering to pay thefair and usual compensation for the services.
(1) Application. A rating organization applying for alicense shall include with its application:
(i) A copy of its constitution, charter, articles oforganization, agreement, association, or incorporation, and a copy of itsbylaws, plan of operation, and any other rules or regulations governing theconduct of its business;
(ii) A list of its members and subscribers;
(iii) The name and address of one or more residents of thisstate upon whom notices, process affecting it, or orders of the director may beserved;
(iv) A statement showing its technical qualifications foracting in the capacity for which it seeks a license; and
(v) Any other relevant information and documents that thedirector may require;
(2) Change of circumstances. Every organization thathas applied for a license shall notify the director of every material change inthe facts or in the documents on which its application was based. Any amendmentto a document filed under this section shall be filed with the director notless than thirty (30) days after it becomes effective;
(3) Granting of license; fee. If the director findsthat the applicant and the natural persons through whom it acts are competent,trustworthy, and technically qualified to provide the services proposed, andthat all requirements of the law are met, he or she shall issue a licensespecifying the authorized activity of the applicant. The fee for the licenseshall be three hundred dollars ($300). The director shall not issue a licenseif the proposed activity would tend to create a monopoly or to substantiallylessen the competition in any market;
(4) Duration. Licenses issued pursuant to this sectionshall remain in effect for three (3) years unless sooner suspended or revoked.All in force licenses shall be transitioned into a three (3) year licensingcycle beginning June 1, 2006, to expire every three (3) years thereafter.License fees may be prorated for the initial renewal period as deemedappropriate by the director. The director may, at any time, after a hearing,revoke or suspend the license of a rating organization that does not complywith the requirements and standards of this chapter.