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REFERENCE TITLE: rate service organizations; examinations |
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State of Arizona Senate Fiftieth Legislature First Regular Session 2011
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SB 1184 |
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Introduced by Senator McComish
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AN ACT
Amending sections 20‑370 and 20‑394, Arizona Revised Statutes; relating to rate service organizations.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-370, Arizona Revised Statutes, is amended to read:
20-370. Examinations of rating organizations
A. The director shall, at least once in every five years, make or cause to be made an examination of each rating organization licensed in this state, and he may, as often as he deems it expedient, may make or cause to be made an examination of each rating organization licensed in this state, each advisory organization referred to in section 20‑368, and of each group, association or other organization referred to in section 20‑369. The reasonable costs of such examination shall be paid by the rating organization, advisory organization or group, association or other organization examined upon presentation to it of a detailed account of the cost.
B. The officers, managers, agents and employees of the rating organization, advisory organization or group, association or other organization may be examined at any time under oath, and shall exhibit all books, records, accounts, documents or agreements governing its method of operation.
C. The director shall furnish two copies of the examination report to the organization, group or association examined and shall notify the organization, group or association that it may, within twenty days thereafter, it may request a hearing on the report or on any facts or recommendations therein in the report. Before filing the report for public inspection, the director shall grant a hearing to the organization, group or association examined.
D. The report of the examination, when filed for public inspection, shall be admissible in evidence in any action or proceeding brought by the director against the organization, group or association examined, or its officers or agents, and shall be prima facie evidence of the facts stated therein in the report.
E. The director may withhold the report of the examination from public inspection for such time as he the director deems proper.
F. In lieu of the examination, the director may accept the report of an examination made by the insurance supervisory official of another state, pursuant to the laws of such state.
Sec. 2. Section 20-394, Arizona Revised Statutes, is amended to read:
20-394. Examination of rate service organizations and joint underwriting and joint reinsurance organizations
The director shall, at least once every five years, make an examination of each rate service organization. The director may, as often as considered necessary, may examine each rate service organization, each advisory organization and each group, association or other organization filing pursuant to section 20‑391. The director shall examine only those activities conducted pursuant to this article. The director may examine the officers, manager, agents and employees of such organizations at any time under oath. The organization examined shall pay the reasonable costs of such an the examination upon presentation to it of a detailed account of the costs. The organization examined shall exhibit all books, records, accounts, documents or agreements governing its method of operation. Instead of such an In lieu of the examination the director may accept the report of an examination made by the insurance supervisory official of another state, pursuant to the laws of such state.