(a)License Required. No rate service organization shall provide any service relating to the rates of any insurance subject to this part, and no insurer shall utilize the services of the organization for those purposes unless the organization has obtained a license under subsection (d).
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Terms Used In Tennessee Code 56-5-110

  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-5-102
  • Rate: includes advisory prospective loss costs. See Tennessee Code 56-5-102
  • Rate service organization: means any person or organization that assists insurers in ratemaking or filing as authorized by §. See Tennessee Code 56-5-102
  • Service of process: The service of writs or summonses to the appropriate party.
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Supplementary rate information: includes any manual or plan of rates, classification, rating schedule, minimum premium, policy fee, rating rule, loss adjustment expense, including defense costs incurred for any reason under the policy, and any other similar information needed to determine the applicable rate in effect or to be in effect. See Tennessee Code 56-5-102
  • Supporting information: means :
    (A) The experience and judgment of the filer and the experience or data of other insurers or organizations relied upon by the filer. See Tennessee Code 56-5-102
(b)Authorized Activities. Any licensed rate service organization may:

(1) Collect, compile, and furnish loss or expense statistics;
(2) Recommend, make or file rates or supplementary rate information;
(3) Advise about rate questions and provide supporting information for rates;
(4) Develop, recommend or file policy provisions or forms, coverages, classifications, and statistical plans;
(5) Make inspections, surveys and audits;
(6) Conduct research and on-the-site inspections in order to prepare classifications of public fire defenses;
(7) Provide actuarial, statistical and administrative services to insurers and insurer-supported organizations;
(8) Conduct and report on the content of research projects; and
(9) Furnish any other services related to those enumerated in this subsection (b).
(c)Availability of Services. No rate service organization shall refuse to supply any services for which it is licensed in this state to any insurer authorized to do business in this state and offering to pay the fair and usual compensation for the services, nor shall a rate service organization require the purchase of any specific services as a condition to obtaining the services sought; provided, that the furnishing of the requested services does not place an unreasonable burden on the rate service organization.
(d)Licensing.

(1)Application. A rate service organization applying for a license shall include with its application:

(A) A copy of its constitution, articles of association or incorporation, bylaws, and any other rules or regulations governing the conduct of its business;
(B) A list of its members and subscribers;
(C) A service and acknowledgment of service of process as provided for insurance companies under § 56-2-501; and
(D) A statement showing its technical qualifications.
(2)Granting of a License. If the commissioner finds that the applicant is qualified, the commissioner shall issue a license specifying the kinds of insurance or subdivisions of kinds of insurance for which the applicant is authorized to act as a rate service organization. Every application shall be granted or denied in whole or in part by the commissioner within sixty (60) days after the date of its filing. Licenses issued pursuant to this section shall remain in effect until suspended or revoked by the commissioner. The fee for the license shall be one hundred dollars ($100).
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