§ 27-44-9 - Licensing of advisory organizations.
SECTION 27-44-9
§ 27-44-9 Licensing of advisoryorganizations. – (a) License required. No advisory organization shall provide any servicerelating to the rates of any insurer subject to this chapter, and no insurershall utilize the services of the organization for those purposes unless theorganization has become licensed under subsection (d) of this section.
(b) Authorized activities. A licensed advisoryorganization may perform any of the authorized activities enumerated in §27-44-11 except no advisory organization may make any filings on behalf of anyinsurer.
(c) Availability of services. No advisory 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.
(d) License. An advisory organization shall submit atthe time of application:
(1) A copy of its constitution, articles of association orincorporation, and the bylaws, plan of operation, or other rules andregulations governing its activities;
(2) A list of its members and subscribers;
(3) The name and address of one or more residents of thisstate upon whom notices, process affecting it, or orders of the director may beserved; and
(4) Any other relevant information and documents that thedirector may require.
(e) Change of circumstances. Every registered advisoryorganization shall promptly notify the director of every material change in thefacts or in the documents upon which its registration was based.
(f) License; fee. If the director finds that theapplicant and the natural persons through whom it acts are competent,trustworthy, and technically qualified to provide the services proposed, andthat all requirements of law are met, he or she shall issue a licensespecifying the authorized activity of the applicant. The annual fee for thelicense shall be one hundred dollars ($100). The director shall not issue alicense if the proposed activity would tend to create a monopoly or tosubstantially lessen competition.
(g) 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, after a hearing, may revoke orsuspend the license of an advisory organization that does not comply with therequirements and standards of this chapter.