Kentucky Statutes 304.13-121 – Authorized activities for advisory organizations
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Any advisory organization in addition to other activities not prohibited, is authorized, on behalf of its members and subscribers, to:
(1) Collect statistical data from members, subscribers, or any other source; (2) Develop statistical plans including territorial and class definitions;
(3) Prepare, file, and distribute prospective loss costs which may include provisions for special assessments. Loss costs, derived in part or entirely upon output form simulation models, must be approved by the commissioner before they become effective;
(4) Prepare, file, and distribute manuals of rating rules, rating schedules, and other supplementary rating information that do not include final rates, expense provisions, profit provisions, or minimum premiums;
(5) Prepare, file, and distribute factors, calculations, or formulas pertaining to classification, territory, increased limits, and other variables;
(6) Distribute information that is required or directed to be filed with the commissioner; (7) Conduct research and on-site inspections in order to prepare classifications of
public fire defenses, and to consult with public officials regarding public fire
protection as it would affect members, subscribers and others;
(8) Conduct research in order to discover, identify, and classify information relating to causes or prevention of losses;
(9) Conduct research relating to the impact of statutory changes upon prospective loss costs and special assessments;
(10) Prepare, file, and distribute policy forms and endorsements and consult with members, subscribers, and others relative to their use and application;
(11) Conduct research and on-site inspections for the purpose of providing risk information relating to individual structures;
(12) Conduct on-site inspections to determine rating classifications for individual insureds;
(13) For workers’ compensation insurance, establish a committee which may include insurance company representatives to review the determination of the rating classification for individual insureds and suggest modifications to the classification system, pursuant to KRS § 304.13-167(1);
(14) Collect, compile, and publish past and current prices of individual insurers, if such information is also made available to the public at a reasonable cost;
(15) Collect and compile exposure and loss experience for the purpose of individual risk experience ratings;
(16) File final rates, at the direction of the commissioner, for residual market mechanisms; and
(17) Furnish any other services, as approved or directed by the commissioner, related to those enumerated in this section.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1127, effective July 15, 2010. — Amended 2000 Ky. Acts ch. 380, sec. 8, effective July 14, 2000. — Created 1982 Ky. Acts ch. 278, sec. 11, effective July 15, 1982.
(1) Collect statistical data from members, subscribers, or any other source; (2) Develop statistical plans including territorial and class definitions;
Terms Used In Kentucky Statutes 304.13-121
- advisory organization: is a ny entity, including its affiliates or subsidiaries, which either has two (2) or more member insurers or is controlled either directly or indirectly by two (2) or more insurers and which assists insurers in ratemaking related activities. See Kentucky Statutes 304.13-011
- classification: means the process of grouping risks with similar risk characteristics so that differences in cost may be recognized. See Kentucky Statutes 304.13-011
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Prospective loss costs: means that portion of a rate that does not include provisions for expenses (other than loss adjustment expenses) or profit, and are based on historical aggregate losses or output from simulation models and loss adjustment expenses adjusted through development to their ultimate value and projected through trending to a future point in time. See Kentucky Statutes 304.13-011
- Supplementary rating information: includes any manual or plan of rates, classification, rating schedule, minimum premium, policy fees, rating rules, or any other similar information needed to determine the applicable rate or premium. See Kentucky Statutes 304.13-011
(3) Prepare, file, and distribute prospective loss costs which may include provisions for special assessments. Loss costs, derived in part or entirely upon output form simulation models, must be approved by the commissioner before they become effective;
(4) Prepare, file, and distribute manuals of rating rules, rating schedules, and other supplementary rating information that do not include final rates, expense provisions, profit provisions, or minimum premiums;
(5) Prepare, file, and distribute factors, calculations, or formulas pertaining to classification, territory, increased limits, and other variables;
(6) Distribute information that is required or directed to be filed with the commissioner; (7) Conduct research and on-site inspections in order to prepare classifications of
public fire defenses, and to consult with public officials regarding public fire
protection as it would affect members, subscribers and others;
(8) Conduct research in order to discover, identify, and classify information relating to causes or prevention of losses;
(9) Conduct research relating to the impact of statutory changes upon prospective loss costs and special assessments;
(10) Prepare, file, and distribute policy forms and endorsements and consult with members, subscribers, and others relative to their use and application;
(11) Conduct research and on-site inspections for the purpose of providing risk information relating to individual structures;
(12) Conduct on-site inspections to determine rating classifications for individual insureds;
(13) For workers’ compensation insurance, establish a committee which may include insurance company representatives to review the determination of the rating classification for individual insureds and suggest modifications to the classification system, pursuant to KRS § 304.13-167(1);
(14) Collect, compile, and publish past and current prices of individual insurers, if such information is also made available to the public at a reasonable cost;
(15) Collect and compile exposure and loss experience for the purpose of individual risk experience ratings;
(16) File final rates, at the direction of the commissioner, for residual market mechanisms; and
(17) Furnish any other services, as approved or directed by the commissioner, related to those enumerated in this section.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1127, effective July 15, 2010. — Amended 2000 Ky. Acts ch. 380, sec. 8, effective July 14, 2000. — Created 1982 Ky. Acts ch. 278, sec. 11, effective July 15, 1982.