California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 1.6 - Advisory Organizations, Manuals Approval › Article 1 - Submission and Approval Procedures, Fees › Section 2199.2.4 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Advisory
				  organization" means every group, association, or other organization of
				  insurers, whether located within or outside of this state, that develops or
				  prepares policy or bond forms or manuals, for use by admitted insurers, carries
				  on research relative to the development and preparation of policy or bond
				  forms, and acts in an advisory, as distinguished from a ratemaking, capacity,
				  and has filed with the Commissioner (a) a copy of its constitution, articles of
				  incorporation, agreement of association, and of its by- laws, or rules and
				  regulations governing its activities. (b) a list of its members and
				  subscribers, and (c) the name and address of a resident of this State upon whom
				  notices or orders of the Commissioner or process may be served.
(b) "Applicant" means any advisory
				  organization as defined in this subchapter applying for approval of a manual
				  pursuant to California Insurance Code Section
				  1855.5.
(c) "Application" means the transmittal
				  letter and manual and other documentation which every advisory organization
				  seeking approval of a manual pursuant to California Insurance Code Section
				  1855.5(a)
				  must file with the Rate Regulation Division, Rate Filing Bureau.
(d) "Transmittal Letter" means the
				  correspondence accompanying the manual filed for approval. Every transmittal
				  letter shall comply with the requirements of Section
				  2199.2.6(b).
(e) "Submission" means acceptance for review
				  of a filed application by the Rate Regulation Division, Rate Filing Bureau. The
				  date of submission shall be the date an application is accepted for review
				  pursuant to Section
				  2199.3.1.
(f) "Manual" means any publication, which is
				  developed or prepared by an advisory organization or any revisions thereof,
				  that could include one or more types of material such as policy writing rules;
				  rating plans; classification codes and descriptions; territory codes and
				  descriptions; rules that include factors or relativities, such as increased
				  limits factors, classification relativities or similar factors, or prospective
				  cost information.
(g) "Market"
				  means the entire statewide business of insurance in California for the Annual
				  Statement Statutory Page 14 line or lines of business under which premium is
				  reported for any type of insurance that is the subject of the advisory
				  organization manual. The market includes all insurers that, by virtue of
				  holding a certificate of authority issued by the Commissioner under Cal. Ins.
				  Code section
				  700, are entitled to transact any
				  such line or lines of insurance business in California as well as those that
				  are actually writing such insurance.
(h) "Technical or actuarial requirements"
				  means all grounds in the California Insurance Code, other than competitive
				  grounds, upon which the Commissioner is authorized to base the Commissioner's
				  review, approval and/or disapproval of advisory organization manuals.
(i) "Party" means the advisory organization
				  whose manual is the subject of a proceeding under this regulation; any person
				  whose petition to intervene in the proceeding has been granted pursuant to
				  section 2661.1 of these regulations; or
				  the California Department of Insurance.
1. New
					 section filed 6-26-96; operative 7-26-96 (Register 96, No. 26).
2.
					 Change without regulatory effect amending subsection (h) filed 7-14-2021
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2021, No. 29). Filing deadline specified in Government
					 Code section
					 11349.3(a)
					 extended 60 calendar days pursuant to Executive Order
					 N-40-20.
Note: Authority cited: Section
						12921,
						Insurance Code; Calfarm Insurance Company, et al. v. Deukmejian, et al. (1989)
						48 Cal. 3d 805, 824; and Pasadena Police Officers Association v. City of
						Pasadena, 51 Cal.3d 564 (1990). Reference: Sections
						100,
						1855.1,
						1855.2,
						1855.3,
						1855.5 and
						12973.9,
						Insurance Code.