Montana Code 33-16-1033. Advisory organization — permitted activity
33-16-1033. Advisory organization — permitted activity. An advisory organization may:
Terms Used In Montana Code 33-16-1033
- Advisory organization: means a person or organization that either has two or more member insurers or is controlled either directly or indirectly by two or more insurers and that assists insurers in ratemaking-related activities. See Montana Code 33-16-1008
- Experience rating: means a rating procedure using past insurance experience of the individual policyholder to forecast future losses by measuring the policyholder's loss experience against the loss experience of policyholders in the same classification to produce a prospective premium credit, debit, or unity modification. See Montana Code 33-16-1008
- Insurer: means a person licensed to write workers' compensation insurance as a plan No. See Montana Code 33-16-1008
- Loss trending: means a procedure for projecting developed losses to the average date of loss for the period during which the policies are to be effective, including loss ratio trending. See Montana Code 33-16-1008
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Pure premium rate: means the portion of the rate that represents the loss cost per unit of exposure, including loss adjustment expense. See Montana Code 33-16-1008
- rates: means rate of premium, policy and membership fee, or any other charge made by an insurer for or in connection with a contract or policy of workers' compensation and employer's liability insurance, prior to application of individual risk variations based on loss or expense considerations. See Montana Code 33-16-1008
- Statistical plan: means the plan, system, or arrangement that is used in collecting data. See Montana Code 33-16-1008
(1)develop statistical plans, including class definitions;
(2)collect statistical data from members, subscribers, or any other source;
(3)prepare and distribute pure premium rate data, adjusted for loss development and loss trending, in accordance with its statistical plan. The data and adjustments must be in sufficient detail to permit insurers to modify pure premiums based upon their own rating methods or interpretations of underlying data.
(4)prepare and distribute manuals for rating rules and rating schedules that do not contain any rules or schedules, including final rates, without information outside the manuals;
(5)distribute information that is filed with the commissioner and open to public inspection;
(6)conduct research and collect statistics in order to discover, identify, and classify information relating to causes or prevention of losses;
(7)prepare and file policy forms and endorsements and consult with members, subscribers, and others relative to their use and application;
(8)collect, compile, and distribute past and current prices of individual insurers, if the information is made available to the general public;
(9)conduct research and collect information to determine the impact of benefit level changes on pure premium rates;
(10)prepare and distribute rules and rating values for the uniform experience rating plan; and
(11)calculate and disseminate individual risk premium modification factors. Individual risk premium modification factors may only be disseminated to:
(a)a licensed producer or an insurer for the business of insurance only; and
(b)the department of labor and industry for regulatory purposes only. Individual employer payroll and loss information may be provided to a person other than the current licensed producer or an insurer only after obtaining the employer’s written permission.