§ 2313. Rate service organization; defined. (a) In this article, "rate\nservice organization" means a person or any other entity which makes or\nfiles rates as permitted by this article, or which assists insurers in\nrate making or filing by collecting, compiling and furnishing loss or\nexpense statistics, or by recommending rates or rate information, or\nwhich inspects risks, tests appliances, formulates rules or establishes\nstandards, as such activities relate to rate making or to administration\nof rates. It shall include a person or entity which prepares and files\npolicy forms and endorsements on behalf of insurers. It shall not\ninclude a joint underwriting association under section two thousand\nthree hundred seventeen of this article, or any employee of an insurer,\nor in the case of insurers under common control or management an\nemployee of any such insurer or their manager, nor shall it include\nactuaries, certified public accountants, attorneys or other\nprofessionals who in their respective vocations may advise insurers on\nrate questions.\n (b) Except as provided in subsection (j) hereof, no insurer shall\nutilize the services of a rate service organization unless the\norganization has obtained a license as provided by this section.\n (c) No rate service organization shall refuse to supply any services\nwhich it is permitted to render in this state to any insurer authorized\nto do business in this state and offering to pay the fair and usual\ncompensation for the services.\n (d) A rate service organization applying for a license as required by\nsubsection (b) hereof shall include with its application:\n (1) a copy of its constitution, charter, articles of organization,\nagreement, association or corporation, and a copy of its by-laws, plan\nof operation and any other rules or regulations governing the conduct of\nits business;\n (2) a list of its members and its subscribers;\n (3) the name and address of one or more residents of this state upon\nwhom notices, process affecting it or orders of the superintendent may\nbe served;\n (4) where appropriate a statement indicating one or more kinds of\ninsurance, or classes of risks, or any part or combination of the\nforegoing, for which it seeks to obtain a license;\n (5) a statement showing its technical qualifications for acting in the\ncapacity for which it seeks a license; and\n (6) any other relevant information and documents that the\nsuperintendent may require.\n (e) The officers, members of the governing board or committee, and\nother persons in control of a corporation or of an unincorporated\nassociation, for the time being, and each partner of a partnership,\nshall be held individually responsible for knowingly violating any\nprovisions of this article applicable to such corporation, association\nor partnership as a rate service organization.\n (f) Every organization which has applied for a license pursuant to\nsubsection (d) hereof shall thereafter promptly notify the\nsuperintendent of every material change in the facts or in the documents\nas filed.\n (g) If the superintendent finds that the applicant and the natural\npersons through whom it acts are competent, trustworthy, and technically\nqualified to provide the services proposed, and that all requirements of\nlaw are met, he shall issue a license specifying the authorized activity\nof the applicant.\n (h) Licenses issued pursuant to this section shall remain in effect\nuntil the licensee withdraws from the state or until the license is\nsuspended or revoked.\n (i) Any amendment to a document filed pursuant to paragraph one of\nsubsection (d) hereof shall be filed at least thirty days before it\nbecomes effective. Failure to comply shall be a ground for revocation of\nthe license granted pursuant to subsection (h) hereof.\n (j) A rate service organization which does not make or file rates, as\npermitted by this article, is not required to obtain a license under\nthis section but no insu
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.