2023 Hawaii Revised Statutes › Title 24. Insurance › 431. Insurance Code › 431:14-107 Rating organizations.

§431:14-107 Rating organizations.
(a) A corporation, an unincorporated association, a partnership, or an individual, whether located within or outside this State, may make application to the commissioner for license as a rating organization for such classes of insurance or subdivision or class of risk, or a part or combination thereof, as are specified in its application and shall file the following with the application:
(1) A copy of its constitution, charter, its articles of organization, agreement, association, or incorporation, and a copy of its bylaws, plan of operation, and any other rules and regulations governing the conduct of its business;
(2) A list of its members and subscribers;
(3) The name and address of a resident of this State upon whom notices or orders of the commissioner or process affecting the rating organization may be served;
(4) A statement of its qualifications as a rating organization;
(5) A biography of the ownership and management of the organization; and
(6) Any other relevant information and documents that the commissioner may require.
(b) If the commissioner finds that the applicant is competent, trustworthy, and otherwise qualified to act as a rating organization and that its constitution, articles of organization, agreement, association, or incorporation, and its bylaws, rules and regulations governing the conduct of its business conform to the requirements of law, the commissioner shall issue a license specifying the classes of insurance or subdivision or class of risk, or part or combination thereof, for which the applicant is authorized to act as a rating organization. Every such application shall be granted or denied in whole or in part by the commissioner within sixty days of the date of its filing with the commissioner. Licenses issued pursuant to this section shall remain in effect for three years unless sooner suspended or revoked by the commissioner. The fee for the license shall be $37.50. Licenses issued pursuant to this section may be suspended or revoked by the commissioner after hearing upon notice, in the event the rating organization ceases to meet the requirements of subsections (a) and (b).
(c) Every rating organization shall notify the commissioner promptly of every material change in the documents or information filed pursuant to subsection (a).
(d)(1) Subject to rules that have been approved by the commissioner as reasonable, each rating organization shall permit any insurer, not a member, to be a subscriber to its rating services for any class of insurance or subdivision or class of risk, or a part or combination thereof, for which it is authorized to act as a rating organization. Notice of proposed changes in the rules shall be given to subscribers. Each rating organization shall furnish its rating services without discrimination to its members and subscribers.
(2) The reasonableness of any rule in its application to subscribers, or the refusal of any rating organization to admit an insurer as a subscriber, shall, at the request of any subscriber or any such insurer, be reviewed by the commissioner at a hearing held upon at least ten days' written notice to such rating organization and to the subscriber or insurer. If the commissioner finds that the rule is unreasonable in its application to subscribers, the commissioner shall order that the rule shall not be applicable to subscribers.
(3) If the rating organization fails to grant or reject an insurer's application for subscribership within thirty days after it was made, the insurer may request a review by the commissioner, in accordance with paragraph (2), as if the application had been rejected. If the commissioner finds that the insurer has been refused admittance to the rating organization as a subscriber without justification, the commissioner shall order the rating organization to admit the insurer as a subscriber. If the commissioner finds that the action of the rating organization was justified, the commissioner shall make an order affirming its action.
(e) No rating organization shall adopt any rule the effect of which would be to prohibit or regulate the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers.
(f) Cooperation among rating organizations or among rating organizations and insurers in matters within the scope of this article is authorized, provided the filings resulting from the cooperation are subject to all the provisions of this article which are applicable to filings generally. The commissioner may review the cooperative activities and practices and if, after a hearing, the commissioner finds that any activity or practice is unfair or unreasonable or otherwise inconsistent with this article, the commissioner may issue a written order specifying in what respects the activity or practice is unfair or unreasonable or otherwise inconsistent with this article, and requiring the discontinuance of the activity or practice.
(g) Any rating organization may provide for the examination of policies, daily reports, binders, renewal certificates, endorsements, or other evidences of insurance, or the cancellation thereof, and may make reasonable rules governing their submission. The rules shall contain a provision that in the event any insurer does not within sixty days furnish satisfactory evidence to the rating organization of the correction of any error or omission previously called to its attention by the rating organization, it shall be the duty of the rating organization to notify the commissioner thereof. All information submitted for examination shall be confidential.
(h) Any rating organization may subscribe for or purchase actuarial, technical or other services, and such services shall be available to all members and subscribers without discrimination. [L 1987, c 347, pt of §2; am L 1990, c 255, §11; am L 1993, c 205, §33; am L 2004, c 122, §62]