Section 379.328

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

Effective - 28 Aug 1972   

  379.328.  Advisory organization defined — required filings — hearings on activities, discontinuance orders. — 1.  Every group, association or other organization of insurers, whether located within or outside this state, which assists insurers which make their own filings or rating organizations in ratemaking, by the collection and furnishing of loss or expense statistics, or by the submission or recommendations, but which does not make filings under section 379.017 and sections 379.316 to 379.361, shall be known as an "advisory organization".

  2.  Every advisory organization shall file with the director

  (1)  A copy of its constitution, its articles of agreement or association or its certificate of incorporation and of its bylaws, rules and regulations governing its activities,

  (2)  A list of its members,

  (3)  The name and address of a resident of this state upon whom notices or orders of the director or process issued at his direction may be served, and

  (4)  An agreement that the director may examine such advisory organization in accordance with the provisions of section 379.343.

  3.  If, after a hearing, the director finds that the furnishing of such information or assistance involves any act or practice which is unfair or unreasonable or otherwise inconsistent with the provisions of section 379.017 and sections 379.316 to 379.361, he may issue a written order specifying in what respect such act or practice is unfair or unreasonable or otherwise inconsistent with the provisions of section 379.017 and sections 379.316 to 379.361, and requiring the discontinuance of such act or practice.

  4.  No insurer which makes its own filings nor any rating organization shall support its filings by statistics or adopt ratemaking recommendations furnished to it by an advisory organization which has not complied with this section or with an order of the director involving such statistics or recommendations issued under subsection 3.  If the director finds such insurer or rating organization to be in violation of this subsection, he may issue an order requiring the discontinuance of the violation.

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(L. 1972 S.B. 547 § 7)