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05 LC 28 2243

House Bill 683

By: Representatives Oliver of the 83rd, Knox of the 24th, Willard of the 49th, Ehrhart of the 36th, Forster of the 3rd, and others

A BILL TO BE ENTITLED
AN ACT

To amend Title 33 of the Official Code of Georgia Annotated, relating to insurance, so as to provide a short title; to comprehensively revise the rate regulatory system for property and casualty insurance in this state; to provide legislative findings; to provide definitions; to provide for the determination of competitive and noncompetitive markets; to provide for factors to consider in making such determinations; to provide for rating standards and methods; to provide for rate regulation in noncompetitive markets; to provide for the filing of certain rates and information; to provide for the method of disapproving certain rates; to provide for certain regulation for policies for large commercial policyholders; to provide for the operation and control of advisory organizations; to provide for permitted and prohibited activities of advisory organizations; to authorize the exchange of certain information; to provide for the keeping of certain records and the making of certain reports; to provide for joint underwriting, pool, and residual market activities; to provide for assigned risks; to provide for certain examinations; to provide for certain exemptions; to provide for penalties; to provide for notice and hearing and judicial review; to correct certain citations; to provide for related matters; to amend Title 34 of the Official Code of Georgia Annotated, relating to labor and industrial relations, so as to correct a reference; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

This Act shall be known and may be cited as the "Property/Casualty Insurance Modernization Act."

SECTION 2.

Title 33 of the Official Code of Georgia Annotated, relating to insurance, is amended by striking Chapter 9, relating to regulation of rates, underwriting rules, and related organizations, and inserting in lieu thereof a new Chapter 9 to read as follows:

"CHAPTER 9
ARTICLE 1

33-9-1.

(a) The purpose of this chapter is to promote the public welfare by regulating insurance rates as provided in this chapter to the end that they shall not be excessive, inadequate, or unfairly discriminatory; to authorize the existence and operation of qualified rating organizations and advisory organizations and require that specified rating services of such rating organizations be generally available to all admitted insurers; and to authorize cooperation between insurers in rate making and other related matters.

(b) It is the express intent of this chapter to permit and encourage competition between insurers on a sound financial basis to the fullest extent possible. However, nothing in this chapter is intended or should be construed to restrict the Commissioner in any way, on his own motion or otherwise, to take any affirmative action by rule, regulation, or administrative determination in a particular case, cases, or class of cases which he may deem necessary to protect the publićs interest in maintaining the standards prescribed in Code Section 33-9-4; and Code Sections 33-9-26 through 33-9-29 in particular shall in no way be viewed as exhaustive or restrictive of the powers or procedures available to the Commissioner for this purpose The General Assembly finds and declares that a modernized and competitive procedure be employed:
(1) To promote price competition among insurers;

(2) To protect policyholders and the public against adverse effects of excessive, inadequate, or unfairly discriminatory rates;

(3) To prohibit unlawful price fixing agreements by or among insurers;

(4) To authorize essential cooperative activities among insurers in the rate-making process and to regulate such activities to prohibit practices that tend to substantially lessen competition or create monopolies; and

(5) To provide necessary regulatory authority in the absence of a competitive marketplace.

33-9-2.

As used in this chapter, the term:

(1) 'Advisory organization' means every any person other than an admitted insurer, whether located within or outside this state, who prepares policy forms or makes underwriting rules incident to but not including the making of rates, rating plans, or rating systems, or who collects and furnishes to admitted insurers or rating organizations loss or expense statistics or other statistical information and data and acts in an advisory, as distinguished from a rate-making, capacity. No duly authorized attorney at law acting in the usual course of his profession shall be deemed to be an advisory organization which has five unrelated members and which assists insurers as authorized by Code Section 33-9-10. It does not include joint underwriting organizations, actuarial or legal consultants, a single insurer, any employees of an insurer, or insurers under common control or management of their employees or managers.

(2) 'Member' means an insurer who participates in or is entitled to participate in the management of a rating, advisory, or other organization 'Classification system' or 'classification' means the process of grouping risks with similar risk characteristics so that differences in costs may be recognized.

(3) 'Rating organization' means every person other than an admitted insurer, whether located within or outside this state, who has as his object or purpose the making of rates, rating plans, or rating systems. Two or more admitted insurers who act in concert for the purpose of making rates, rating plans, or rating systems and who do not operate within the specific authorizations contained in Code Sections 33-9-6, 33-9-7, 33-9-11, 33-9-20, and 33-9-22 shall be deemed to be a rating organization. No single insurer shall be deemed to be a rating organization 'Commercial risk' means any kind of risk which is not a personal risk.

(4) 'Subscriber' means an insurer which is furnished at its request with rates and rating manuals by a rating organization of which it is not a member, or with advisory services by an advisory organization of which it is not a member 'Commissioner' means the Commissioner of Insurance.

(5) 'Competitive market' means any market except those which have been found to be noncompetitive pursuant to Code Section 33-9-4.

(6) 'Developed losses' means losses, including loss adjustment expenses, adjusted, using standard actuarial techniques, to eliminate the effect of differences between current payment or reserve estimates and those which are anticipated to provide actual ultimate loss, including loss adjustment expense, payments.

(7) 'Excessive' means a rate that is likely to produce a long-term profit that is unreasonably high for the insurance provided. No rate in a competitive market shall be considered excessive.

(8) 'Expenses' means that portion of a rate attributable to acquisition, field supervision, collection expenses, general expenses, taxes, licenses, and fees.

(9) 'Experience rating' means a rating procedure utilizing past insurance experience of the individual policyholder to forecast future losses by measuring the policyholder!s loss experience against the loss experience of policyholders in the same classification to produce a prospective premium credit, debit, or unity modification.

(10) 'Inadequate' means a rate which is unreasonably low for the insurance provided and the continued use of which endangers the solvency of the insurers using it or will have the effect of substantially lessening competition or creating a monopoly in any market.

(11) 'Joint underwriting' means an arrangement established to provide insurance coverage for a risk pursuant to which two or more insurers contract with the insured for a price and policy terms agreed upon between or among the insurers.

(12) 'Large commercial policyholder' means a commercial policyholder with the size, sophistication, and insurance-buying expertise to negotiate with insurers in a largely unregulated environment as determined by rule and regulation of the Commissioner based upon two or more of the following factors: aggregate premium on commercial policies held by the insured, including workers! compensation; number of employees; annual net revenues or sales; net worth; annual budgeted expenditures for not for profit organizations or a public body or agencies; or population for municipalities.

(13) 'Loss adjustment expense' means the expenses incurred by the insurer in the course of settling claims.

(14) 'Market' means the interaction between buyers and sellers consisting of a product market component and a geographic component. A product market component consists of identical or readily substitutable products including, but not limited to, consideration of coverage, policy terms, rate classifications, and underwriting. A geographic market component is a geographical area in which buyers have a reasonable degree of access to insurance sales outlets. Determination of a geographic market component shall consider existing market patterns.

(15) 'Noncompetitive market' means a market which is subject to a ruling pursuant to Code Section 33-9-4 that a reasonable degree of competition does not exist. For the purposes of this chapter, residual markets and pools are noncompetitive markets.

(16) 'Personal risk' means homeowners, tenants, nonfleet private passenger automobiles, mobile homes, and other property and casualty insurance for personal, family, or household needs. This includes any property and casualty insurance that is otherwise intended for noncommercial coverage.

(17) 'Pool' means an arrangement pursuant to which two or more insurers participate in the sharing of risks on a predetermined basis. A pool may operate as an association, syndicate, or in any other generally recognized manner.

(18) 'Prospective loss cost' means that portion of a rate that does not include provisions for expenses, other than loss adjustment expenses, or profit and is based on historical aggregate losses and loss adjustment expenses adjusted through development to their ultimate value and projected through trending to a future point in time.

(19) 'Rate' means that cost of insurance per exposure unit whether expressed as a single number or as a prospective loss cost with an adjustment to account for the treatment of expenses, profit, and individual insurer variation in loss experience, prior to any application of individual risk variations based on loss or expense considerations, and does not include minimum premiums.

(20) 'Residual market mechanism' means an arrangement, either voluntary or mandated by law, involving participation by insurers in the equitable apportionment of risks among insurers for insurance which may be afforded applicants who are unable to obtain insurance through ordinary methods.

(21) 'Special assessments' means guaranty fund assessments, special indemnity fund assessments, vocational rehabilitation fund assessments, and other similar assessments. Special assessments shall not be considered as either expenses or losses.

(22) 'Supplementary rate information' means any manual or plan of rates, classification, rating schedule, minimum premium, policy fee, rating rule, and any other similar information needed to determine an applicable rate in effect or to be in effect.

(23) 'Supporting information' means the experience and judgment of the filer and the experience or data of other insurers or organizations relied upon by the filer, the interpretation of any statistical data relied upon by the filer, a description of methods used in making the rates, and other similar information relied upon by the filer.

(24) 'Trending' means any procedure for projecting losses to the average date of loss, or premiums or exposures to the average date of writing, for the period during which the policies are to be effective.

(25) 'Unfairly discriminatory' means rates that cannot be actuarially justified. It does not refer to rates that produce differences in premiums for policyholders with like loss exposures but different expenses, or like expenses but different loss exposures, so long as the rate reflects such differences with reasonable accuracy. A rate is not unfairly discriminatory if it averages broadly among persons insured under a group, franchise, or blanket policy, or a mass marketing plan. No rate in a competitive market shall be considered unfairly discriminatory unless it violates the provisions of subsection (b) of Code Section 33-9-5 in that they classify, or are based, in whole or in part on the basis of race, color, creed, or national origin.

33-9-3.

(a) This chapter shall apply to all kinds of insurance written on risks or on operations by any insurer authorized to do business in this state, except:

(1) Reinsurance other than joint reinsurance to the extent stated in Code Section 33-9-19;

(2) Life insurance;

(3) Disability income, specified disease, or hospital indemnity policies Accident and sickness insurance;

(4) Insurance of vessels or craft, their cargoes, marine builderś risks, marine protection and indemnity, or other risks commonly insured under marine, as distinguished from transportation, insurance policies. Inland marine insurance shall be deemed to include insurance defined by statute, or by interpretation thereof or, if not so defined or interpreted, by ruling of the Commissioner or as established by general custom of the business, as inland marine insurance;

(5) Insurance against loss of or damage to aircraft, insurance of hulls of aircraft, including their accessories and equipment, or insurance against liability arising out of the ownership, maintenance, or use of aircraft;

(6) Title insurance; or

(7) Annuities.

(a.1) The Commissioner may by rule or regulation establish criteria by which defined commercial risks may be exempted from the filing requirements of this chapter.

(b)(1) This chapter shall apply to all insurers, including stock and mutual companies, Lloyd́s associations, and reciprocal and interinsurance exchanges, which under any laws of this state write any of the kinds of insurance to which this chapter applies.

(2) The provisions of this chapter regarding rates shall apply to any insurer, fraternal benefit society, health care plan, nonprofit medical service corporation, nonprofit hospital service corporation, health maintenance organization, or preferred provider organization providing any accident or sickness insurance or health benefit plan issued, delivered, issued for delivery, or renewed in this state to the extent required by subsection (c) of this Code section.

(c) Provisions of this chapter regarding rates shall apply only to a proposed rate for any insurance or health benefit plan:

(1) Which alone or in combination with any previous rate change for such insurance or plan would result in a rate increase of:

(A) Any amount, but no decrease shall be subject to such provisions; provided, however,

(B) The provisions of this chapter shall not apply to accident and sickness insurance; or

(2) Made within 36 months after any rate change described by paragraph (1) of this subsection.

33-9-4.

(a) The following standards shall apply to the making and use of rates pertaining to all classes of insurance to which this chapter is applicable:

(1) Rates shall not be excessive or inadequate, as defined in this Code section, nor shall they be unfairly discriminatory;

(2) No rate shall be held to be excessive unless such rate is unreasonably high for the insurance provided and a reasonable degree of competition does not exist in the area with respect to the classification to which such rate is applicable; provided, however, with respect to rate filings involving an increase in rates, no rate for personal private passenger motor vehicle insurance shall be held to be excessive unless such rate is unreasonably high for the insurance provided;

(3) No rate shall be held inadequate unless it is unreasonably low for the insurance provided and continued use of it would endanger solvency of the insurer, or unless the use of such rate by the insurer using such rate has, or will, if continued, tend to destroy competition or create a monopoly;

(4) Consideration shall be given to the extent applicable to past and prospective loss experience within and outside this state, to conflagration and catastrophe hazards, to a reasonable margin for underwriting profit and contingencies, to past and prospective expenses both country wide and those specially applicable to this state, to the insureŕs average yield from investment income, and to all other factors, including judgment factors, deemed relevant within and outside this state; and, in the case of fire insurance rates, consideration may be given to the experience of the fire insurance business during the most recent five-year period;

(5) Consideration may also be given, in the making and use of rates, to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers;

(6) The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the operating methods of any such insurer or group with respect to any kind of insurance or with respect to any subdivision or combination thereof;

(7) Risks may be grouped by classifications for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. Such standards may measure any difference among risks that have a probable effect upon losses or expenses. Classifications or modifications of classifications of risks may be established based upon size, expense, management, individual experience, location or dispersion of hazard, or any other reasonable considerations. Such classifications and modifications shall apply to all risks under the same or substantially the same circumstances or conditions; provided, however, the Commissioner shall establish the maximum amount of any such modification;

(8) Nothing contained in this Code section or elsewhere in this chapter shall be construed to repeal or modify Chapter 6 of this title, relating to unfair trade practices, and any rate, rating classification, rating plan or schedule, or variation thereof established in violation of Chapter 6 of this title shall, in addition to the consequences stated in Chapter 6 of this title or elsewhere, be deemed violative of this Code section;

(9) No insurer shall base any standard or rating plan on vehicle insurance, in whole or in part, directly or indirectly, upon race, creed, or ethnic extraction; and

(10) No insurer shall base any standard or rating plan on vehicle insurance, in whole or in part, directly or indirectly, upon any physical disability of an insured unless the disability directly impairs the ability of the insured to drive a motor vehicle A competitive market is presumed to exist unless the Commissioner, after notice and hearing, determines that a reasonable degree of competition does not exist within a market and issues a ruling to that effect. Such ruling shall expire one year after issue unless rescinded earlier by the Commissioner or unless the Commissioner renews the ruling after a hearing and a finding as to the continued lack of a reasonable degree of competition. The Commissioner shall consider all relevant structural factors in determining the competitiveness of the market including the number of insurers actively engaged in providing coverage, market shares, changes in market shares, and ease of entry.

(b) The following factors shall be considered by the Commissioner for purposes of determining if a reasonable degree of competition does not exist in a particular line of insurance:

(1) The number of insurers or groups of affiliated insurers actively engaged in providing coverage;

(2) Measures of market concentration and changes of market concentration over time;

(3) Ease of entry and the existence of financial or economic barriers that could prevent new firms from entering the market;

(4) The extent to which any insurer or group of affiliated insurers controls all or a portion of the market;

(5) Whether the total number of companies writing the line of insurance in this state is sufficient to provide multiple options;

(6) The disparity among insurance rates and classifications to the extent that such classifications result in rate differentials;

(7) The availability of insurance coverage to consumers;

(8) The opportunities available to consumers in the market to acquire pricing and other consumer information; and

(9) Other relevant factors

(c) The Commissioner shall monitor the degree and continued existence of competition in this state on an ongoing basis. In doing so, the Commissioner may utilize existing relevant information, analytical systems, and other sources or rely on some combination thereof. Such activities may be conducted internally within the Insurance Department, in cooperation with other state insurance departments, through outside contractors, in any combination thereof, or in any other appropriate manner.

33-9-5.

(a) Subject to and in compliance with this chapter authorizing insurers to be members or subscribers of rating or advisory organizations or to engage in joint underwriting or joint reinsurance, two or more insurers may act in concert with each other and with others with respect to any matters pertaining to the making of rates or rating systems, the preparation or making of insurance policy or bond forms, underwriting rules, surveys, inspections and investigations, the furnishing of loss or expense statistics or other information and data, or carrying on of research Rates shall not be excessive, inadequate, or unfairly discriminatory.

(b) Risks may be classified in any way except that no risk may be classified in whole or in part on the basis of race, color, creed, or national origin.

(c) In determining whether rates in a noncompetitive market are excessive, inadequate, or unfairly discriminatory, consideration may be given to the following elements:

(1) BASIC RATE FACTORS. Due consideration shall be given to past and prospective loss and expense experience within and outside of this state, to catastrophe hazards and contingencies, to events or trends within and outside of this state, to dividends or savings to policyholders, members, or subscribers, and to all other factors and judgments deemed relevant by the insurer;

(2) CLASSIFICATION. Risks may be grouped by classifications for the establishment of rates and minimum premiums. Classification rates may be modified for individual risks in accordance with rating plans or schedules which establish standards for measuring probable variations in hazards or expenses, or both;

(3) EXPENSES. The expense provisions shall reflect the operating methods of the insurer and its own past expense experience and anticipated future expenses;

(4) CONTINGENCIES AND PROFITS. The rates may contain a provision for contingencies and a provision for a reasonable underwriting profit and may reflect investment income directly attributable to unearned premium and loss reserves; and

(5) OTHER RELEVANT FACTORS. Any other factors available at the time of hearing.

33-9-6.

(a) With respect to any matters pertaining to the making of rates or rating systems, the preparation or making of insurance policy or bond forms, underwriting rules, surveys, inspections and investigations, the furnishing of loss or expense statistics or other information and data, or carrying on of research, two or more admitted insurers having a common ownership or operating in this state under common management or control are authorized to act in concert between or among themselves the same as if they constituted a single insurer; and to the extent that the matters relate to cosurety bonds, two or more admitted insurers executing the bonds are authorized to act in concert between or among themselves the same as if they constituted a single insurer If the Commissioner determines that competition does not exist in a market and issues a ruling to that effect pursuant to Code Section 33-9-4, the rates applicable to insurance sold in that market shall be regulated in accordance with the provisions of Code Sections 33-9-5 through 33-9-8 applicable to noncompetitive markets.

(b) Any rate filing in effect at the time the Commissioner determines that competition does not exist pursuant to Code Section 33-9-4 shall be deemed to be in compliance with the laws of this state unless disapproved pursuant to the procedures and rating standards contained in Code Sections 33-9-5 through 33-9-8 applicable to noncompetitive markets.

(c) Any insurer having a rate filing in effect at the time the Commissioner determines that competition does not exist pursuant to Code Section 33-9-4 may be required to furnish supporting information within 30 days of a written request by the Commissioner.

33-9-7.

(a) Agreements may be made among admitted insurers with respect to the equitable apportionment among them of property and casualty insurance which may be afforded applicants who are in good faith entitled to but who are unable to procure such insurance through ordinary methods, and with respect to the use of reasonable rate modifications for such insurance, such agreements to be subject to the approval of the Commissioner Filings in competitive markets. For personal lines, every insurer shall file with the Commissioner all rates and supplementary rate information to be used in this state no later than 30 days after the effective date; provided, however, that such rates and supplementary rate information need not be filed for inland marine risks which by general custom are not written according to manual rules or rating plans.

(b) All such agreements shall be submitted in writing to the Commissioner for his consideration and approval together with such information as he may reasonably require. The Commissioner shall approve only such agreements as are found by him to contemplate the use of rates which meet the standards prescribed by this chapter and activities and practices that are not unfair, unreasonable, or otherwise inconsistent with this chapter Filings in noncompetitive markets.

(1) Every insurer shall file with the Commissioner all rates, supplementary rate information, and supporting information for noncompetitive markets at least 30 days before the proposed effective date. The Commissioner may give written notice, within 30 days of the receipt of the filing, that the Commissioner needs additional time, not to exceed 30 days from the date of such notice, to consider the filing. Upon written application of the insurer, the Commissioner may authorize rates to be effective before the expiration of the waiting period or an extension thereof. A filing shall be deemed to meet the requirements of this chapter and to become effective unless disapproved pursuant to Code Section 33-9-8 by the Commissioner before the expiration of the waiting period or an extension thereof. Residual market mechanisms or advisory organizations may file residual market rates.

(2) The filing shall be deemed in compliance with the filing provisions of this Code section unless the Commissioner informs the insurer within 10 days after receipt of the filing as to what supplementary rate information or supporting information is required to complete the filing.

(c) At any time after such agreements are in effect, the Commissioner may review the practices and activities of the adherents to such agreements and, if after a hearing upon not less than ten dayś notice to such adherents he finds that any such practice or activity is unfair or unreasonable or is otherwise inconsistent with this chapter, he may issue a written order to the parties to any such agreement specifying in what respect such act or practice is unfair or unreasonable or otherwise inconsistent with this chapter and requiring the discontinuance of such activity or practice. For good cause, and after hearing upon not less than ten dayś notice to the adherents to such agreement, the Commissioner may revoke approval of any such agreement Reference Filings. An insurer may file its rates by either filing its final rates or by filing a multiplier and, if applicable, an expense constant adjustment to be applied to prospective loss costs that have been filed by an advisory organization on behalf of the insurer as permitted by Code Section 33-9-10.

(d) Filings open to inspection. All rates, supplementary rate information, and any supporting information filed under this chapter shall be open to public inspection once they have been filed. Copies may be obtained from the Commissioner upon request and upon payment of a reasonable fee.

(e) Consent to rate. Notwithstanding any other provisions of this Code section, upon written application of the insured, stating the reason therefor, a rate in excess of or below that otherwise applicable may be used on any specific risk.

33-9-8.

(a) Agreements shall be made among admitted property and casualty insurers with respect to the equitable apportionment among them of property and casualty insurance which may be afforded applicants who are in good faith entitled to but who are unable to procure such insurance through ordinary methods upon the determination by the Commissioner in writing that an agreement relative to a given kind or kinds of property and casualty insurance is necessary to protect the health, property, and welfare of the citizens of Georgia. All of the agreements shall be subject to the approval of the Commissioner and upon his approval shall have the effect of rules and regulations promulgated by the Commissioner Bases for disapproval.

(1) The Commissioner shall disapprove a rate in a competitive market only if the Commissioner finds pursuant to subsection (b) of this Code section that the rate is inadequate or unfairly discriminatory.

(2) The Commissioner may disapprove a rate for use in a noncompetitive market only if the Commissioner finds pursuant to subsection (b) of this Code section that the rate is excessive, inadequate, or unfairly discriminatory.

(b) All of the agreements shall be submitted in writing to the Commissioner for his consideration and approval within the period of time specified by the Commissioner in his determination, as provided for in this Code section, together with such information as he may reasonably require. The approval of the agreements shall comply with the requirements of the rule-making process as set forth in Code Section 33-2-9, as now or hereafter amended. The Commissioner shall approve only such agreements as are found by him to contemplate the use of rates which meet the standards prescribed by this chapter and activities and practices that are not unfair, unreasonable, or otherwise inconsistent with this chapter Procedures for disapproval.

(1) Prior to the expiration of the waiting period or an extension thereof of a filing made pursuant to subsection (b) of Code Section 33-9-7, the Commissioner may disapprove by written order rates filed pursuant to subsection (b) of Code Section 33-9-7 without a hearing. The order shall specify in what respects such filing fails to meet the requirements of this chapter. Any insurer whose rates are disapproved under this Code section shall be given a hearing upon written request made within 30 days of disapproval.

(2) If, at any time, the Commissioner finds that a rate applicable to insurance sold in a noncompetitive market does not comply with the standards set forth in Code Section 33-9-5, the Commissioner may, after a hearing held upon not less than 20 dayś written notice, issue an order pursuant to subsection (c) of this Code section disapproving such rate. The hearing notice shall be sent to every insurer and advisory organization which adopted the rate and shall specify the matters to be considered at the hearing. The disapproval order shall not affect any contract or policy made or issued prior to the expiration of the period set forth in such order. However, a policyholder shall have the privilege to cancel the policy containing the disapproved rates without penalty, including obtaining return premium calculated according to company pro rata schedules or waiver of minimum premium earned stipulations.

(3) If, at any time, the Commissioner finds that a rate applicable to insurance sold in a competitive market is inadequate,or unfairly discriminatory, the Commissioner may issue an order pursuant to subsection (c) of this Code section disapproving the rate. Such order shall not affect any contract or policy made or issued prior to the expiration period set forth in such order. However, a policyholder shall have the privilege to cancel the policy containing the disapproval rates without penalty, including obtaining return premium calculated according to company pro rata schedules or waiver of minimum premium earned stipulations.

(c) If, as provided in this Code section, the Commissioner determines that it is necessary to protect the health, property, and welfare of the citizens of this state, in addition to all other authority granted in this title, the Commissioner shall also have and may exercise the following authority:

(1) The Commissioner may require that any rates contemplated to be used under this Code section shall be approved by him prior to their use;

(2) The Commissioner may declare that any policies, contracts, or rates used pursuant to any agreement or plan established under this Code section shall be the exclusive policies, contracts, or rates authorized to be used in Georgia for the kind or kinds of insurance; and he may prohibit the use by any person of policies, contracts, or rates in this state which are different from those established in accordance with this Code section; and

(3) The Commissioner may amend or modify in whole or in part and may adopt any agreement submitted to him in accordance with this Code section. If no agreement is submitted within the time prescribed by the Commissioner or if after a hearing the agreement submitted is unacceptable to the Commissioner, the Commissioner may on his own motion promulgate and adopt a reasonable plan to implement this Code section which plan shall become effective on a date not sooner than ten days as specified by the Commissioner in his order Order of disapproval. If the Commissioner disapproves a rate pursuant to subsection (b) of this Code section, the Commissioner shall issue an order within 30 days of the close of the hearing specifying in what respects such rate fails to meet the requirements of this chapter. The order shall state an effective date no sooner than 30 business days after the date of the order when the use of such rate shall be discontinued. This order shall not affect any policy made before the effective date of the order. However, a policyholder shall have the privilege to cancel the policy containing the disapproval rates without penalty, including obtaining return premium calculated according to company pro rata schedules or waiver of minimum premium earned stipulations.

(d) At any time after the agreements are in effect the Commissioner may review the practices and activities of the adherents to such agreements and, if after a hearing upon not less than ten dayś notice to such adherents, he finds that any such practice or activity is unfair or unreasonable, or is otherwise inconsistent with this chapter, he may issue a written order to the parties of the agreement specifying in what respect the act or practice is unfair or unreasonable or otherwise inconsistent with this chapter and requiring the discontinuance of the activity or practice. For good cause, and after hearing upon not less than ten dayś notice to the adherents thereto, the Commissioner may revoke approval of the agreement Appeal of orders; establishment of reserves. If an order of disapproval is appealed pursuant to Code Section 33-9-20, the insurer may implement the disapproved rate upon notification to the court, in which case any excess of the disapproved rate over a rate previously in effect shall be placed in a reserve established by the insurer. The court shall have control over the disbursement of funds from such reserve. Such funds shall be distributed as determined by the court in its final order except that de minimus refunds to policyholders shall not be required.

(e) Whenever the Commissioner determines that a lack of competition or a lack of availability exists in this state in either property or casualty insurance, the Commissioner is authorized to protect the health, property, and welfare of the citizens of this state by exercising the following authority:

(1) The Commissioner shall approve all rates contemplated to be used under this Code section prior to their use;

(2) The Commissioner shall approve any policies or contracts used pursuant to any agreement or plan established under this Code section and such policies or contracts shall be used exclusively in this state for those kinds of insurance. The use by any person of any policies or contracts which are different from those established in accordance with this Code section shall be prohibited; and

(3) The Commissioner may by order implement a plan or program to provide the necessary insurance coverages to the citizens of this state by equitable apportionment among all property and casualty insurers licensed to transact those kinds of insurance in this state.

(f) The powers contained in this Code section are cumulative and shall be in addition to all other powers of the Commissioner contained elsewhere in this title or under the laws of this state.

33-9-9.

Members and subscribers of rating or advisory organizations may use the rating systems, underwriting rules, or policy or bond form of the organizations and the rates filed by such organizations for all lines of insurance covered by the provisions of this chapter, either consistently or intermittently, but, except as provided in Code Sections 33-9-3, 33-9-7, 33-9-19, and 33-9-20, shall not agree with each other or rating organizations or others to adhere to such rates, rating systems, underwriting rules, or policy or bond form. The fact that two or more admitted insurers, whether or not members or subscribers of a rating or advisory organization, use, either consistently or intermittently, the rates or rating systems made or adopted by a rating organization, or the underwriting rules or policy or bond forms prepared by a rating or advisory organization shall not be sufficient in itself to support a finding that an agreement so to adhere exists and may be used only for the purpose of supplementing or explaining any competent evidence of the existence of the agreement (a) A policy of insurance sold to a large commercial policyholder shall not be subject to the requirements of this chapter, including, but not limited to, Code Sections 33-9-4 through 33-9-8. The forms and endorsements for any policy sold to a large commercial policyholder shall not be subject to filing and approval requirements.

(b) All policies issued pursuant to the provisions of this Code section shall contain a conspicuous disclaimer printed in at least ten-point, boldface type that states that the policy applied for, including the rates, rating plans, resulting premiums, and the policy forms, is not subject to the rate and form requirements of this state and other provisions of the insurance law that apply to other commercial products and may contain significant differences from a policy that is subject to all provisions of the insurance law. Such notice shall set forth possible differences in policy conditions, forms, and endorsements, as compared to a policy that is subject to all of the provisions of the insurance law. The format and provisions of such notice shall be prescribed by the Commissioner. The disclosure notice will also include a policyholdeŕs acknowledgment statement, to be signed and dated prior to the effective date of the coverage, and shall remain on file with the insurer.

(c) In procuring insurance, a large commercial policyholder shall certify on a form approved by the department that it meets the eligibility requirements set out in subsection (a) of this Code section and specify the requirements that the policyholder has met. This certification is to be completed annually and remain on file with the insurer.

33-9-10.

(a) Upon compliance with this chapter as applicable thereto, any rating organization, advisory organization, and any group, association, or other organization of admitted insurers which engages in joint underwriting or joint reinsurance through such organization or by standing agreement among the members thereof may conduct operations in this state. With respect to insurance risks or operations in this state, no insurer shall be a member or subscriber of any such organization, group, or association that has not complied with this chapter. License required. No advisory organization shall provide any service relating to the rates of any insurance subject to this chapter, and no insurer shall utilize the services of such organization for such purposes, unless the organization obtained a license under this Code section.

(b) Availability of services. No advisory 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.

(1) APPLICATION. An advisory organization applying for a license shall include with its application:

(A) A copy of its constitution, charter, 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) The name and address of one or more residents of this state upon whom notices, process affecting it, or orders of the Commissioner may be served;

(D) A statement showing its technical qualifications for acting in the capacity for which it seeks a license;

(E) A biography of the ownership and management of the organization; and

(F) Any other relevant information and documents that the Commissioner may require.

(2) CHANGE IN CIRCUMSTANCES. Every advisory organization which has applied for a license shall promptly notify the Commissioner of every material change in the facts or in the documents on which its application was based.

(3) GRANTING OF LICENSE. If the Commissioner finds that the applicant and the natural persons through which it acts are competent, trustworthy, and technically qualified to provide the services proposed and that all requirements of law are met, the Commissioner shall issue a license specifying the authorized activity of the applicant.

(4) DURATION. Licenses issued pursuant to this Code section shall remain in effect until the licensee withdraws from the state or until the license is suspended or revoked. The Commissioner may at any time, after a hearing, revoke or suspend the license of an advisory organization that does not comply with the requirements and standards of this chapter.

33-9-11.

Cooperation among rating organizations or among rating organizations and insurers in rate making or in other matters within the scope of this chapter is authorized. The Commissioner may review the cooperative activities and practices and, if after a hearing he finds that the activity or practice is unfair or unreasonable or otherwise inconsistent with this chapter, he may issue a written order specifying in what respects the activity or practice is unfair or unreasonable or otherwise inconsistent with this chapter and requiring the discontinuance of the activity or practice. Any advisory organization, in addition to other activities not prohibited, is authorized on behalf of its members and subscribers to:

(1) Develop statistical plans including, but not limited to, territorial and class definitions;

(2) Collect statistical data from members, subscribers, or any other sources;

(3) Prepare and distribute prospective loss costs which may include provisions for special assessments and taxes;

(4) Prepare and distribute factors, calculations, or formulas pertaining to classification, territory, increased limits, and other variables;

(5) Prepare and distribute manuals of rating rules and rating schedules that do not include final rates, expense provisions, profit provisions, or minimum premiums;

(6) Distribute information that is required or directed to be filed with the Commissioner;

(7) Conduct research and on-site inspections in order to prepare classifications of public fire defenses and other exposures;

(8) Consult with public officials regarding public fire protection as it would affect members, subscribers, and others;

(9) Conduct research and collect statistics in order to discover, identify, and classify information relating to causes or prevention of losses;

(10) Conduct research and collect information relating to the impact of statutory changes upon prospective loss costs and special assessments;

(11) Prepare, file, and distribute policy forms and endorsements and consult with members, subscribers, and others relative to their use and application;

(12) Conduct research and on-site inspections for the purpose of providing risk information relating to individual risks;

(13) Conduct on-site inspections to determine rating classifications for individual insureds;

(14) Collect, compile, and distribute past and current prices of individual insurers and publish such information, provided such information, is also made available to the general public for a reasonable price;

(15) Collect and compile exposure and loss experience for the purpose of individual risk experience ratings;

(16) File final rates, at the direction of the Commissioner, for residual market mechanisms; and

(17) Furnish any other services, as approved or directed by the Commissioner, related to those enumerated in this Code section.

33-9-12.

(a) No rating organization shall conduct its operations in this state without first filing with the Commissioner a written application for and securing a license to act as a rating organization. Any rating organization may make application for and obtain a license as a rating organization if it shall meet the requirements for a license set forth in this chapter. Every rating organization shall file with its application:

(1) A copy of its constitution; its articles of incorporation, agreement or association; and of its bylaws, rules, and regulations governing the conduct of its business, all duly certified by the custodian of the originals of the constitution, articles of incorporation, agreement or association, bylaws, rules, and regulations;

(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; and

(4) A statement of its qualifications as a rating organization Except as specifically permitted under this chapter, no advisory organization shall compile or distribute recommendations relating to rates that include expenses, other than loss adjustment expenses, or profit.

(b) The fee for filing an application for license as a rating organization shall be an amount as provided in Code Section 33-8-1, payable in advance to the Commissioner No insurer or advisory organization shall attempt to monopolize or combine or conspire with any other person to monopolize an insurance market in this state. No insurers or advisory organization shall engage in a boycott, on a concerted basis, of an insurance market.

(c) Except as otherwise provided in this chapter, no insurer shall agree with any other insurer or with an advisory organization to adhere to or use any rate, supplementary rate information, policy, surveys, inspections, or similar material except as needed to develop statistical plans or facilitate the reporting of statistics pursuant to this chapter.

(d) The fact that two or more insurers, whether or not members or subscribers of any advisory organization, use consistently or intermittently the same rates, supplementary rate information policy, or bond forms, surveys, inspections, or similar materials is not sufficient in itself to support a finding that an illegal agreement exists and may be used only for the purpose of supplementing or explaining other direct evidence of the existence of any such agreement.

(e) Two or more insurers having a common ownership or operating in this state under common management or control may act in concert between or among themselves with respect to any matters pertaining to activities authorized in this chapter as if they constituted a single insurer.

33-9-13.

(a) To obtain and retain a license, a rating organization shall provide satisfactory evidence to the Commissioner that it will:

(1) Permit any admitted insurer to become a member of or a subscriber to such rating organization at a reasonable cost and without discrimination, or withdraw therefrom;

(2) Neither have nor adopt any rule or exact any agreement the effect of which would be to require any member or subscriber, as a condition to membership or subscribership, to adhere to its rates, rating plans, rating systems, underwriting rules, or policy or bond forms;

(3) Neither adopt any rule nor exact any agreement 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;

(4) Neither practice nor sanction any plan or act of boycott, coercion, or intimidation;

(5) Neither enter into nor sanction any contract or act by which any person is restrained from lawfully engaging in the insurance business;

(6) Notify the Commissioner promptly of every change in its constitution, its articles of incorporation, agreement or association, and of its bylaws, rules, and regulations governing the conduct of its business; its list of members and subscribers; and the name and address of the resident of this state designated by it upon whom notices or orders of the Commissioner or process affecting such organization may be served; and

(7) Comply with Code Section 33-9-20 Insurers and advisory organizations shall file with the Commissioner, and the Commissioner shall review, reasonable rules and plans for recording and reporting of loss and expense experience. The Commissioner may designate one or more advisory organizations to assist in gathering such experience and making compilations thereof. Except as provided in subsection (c) of this Code section, no insurer shall be required to record or report its experience in a manner inconsistent with its own rating system.

(b) The Commissioner and every insurer and advisory organization may exchange information and experience data with insurance regulatory officials, insurers, and advisory organizations, in this and other states and may consult with them with respect to the collection of statistical data and the application of rating systems.

(c) Each workerś compensation insurer shall adhere to the uniform classification system and uniform experience rating plan as submitted to the Commissioner by the advisory organization. An insurer may develop subclassifications of the uniform classification system, upon which a rate may be made; provided, however, that such subclassifications must be filed on an informational basis only with the Commissioner 30 days prior to their use. The Commissioner shall disapprove subclassifications only if the insurer fails to demonstrate that the data thereby produced can be reported consistent with the uniform statistical plan and classification system. Each workerś compensation insurer shall report its experience in accordance with the statistical plans and other reporting requirements in use by the advisory organization designated by the Commissioner. The advisory organization shall develop and file rules reasonably related to the recording and reporting of data pursuant to the uniform statistical plan, uniform experience rating plan, and the uniform classification system.

33-9-14.

(a) The Commissioner shall examine each application for license to act as a rating organization and the documents filed therewith and may make such further investigation of the applicant, its affairs, and its proposed plan of business as he deems desirable Acting in concert. Notwithstanding the provisions of Code Section 33-9-11, insurers participating in joint underwriting, pools, or residual market mechanisms may act in cooperation with each other in the making of rates, rating systems, supplementary rate information, policy or bond forms, underwriting rules, surveys, inspections, and investigations, the furnishing of loss and expense statistics or other information, and conducting research. Joint underwriting, pools, and residual market mechanisms shall not be deemed advisory organizations.

(b) The Commissioner shall issue the license applied for within 60 days of its filing with him, if from such examination and investigation he is satisfied that: Regulation.

(1) The business reputation of the applicant and its officers is good; If, after notice and hearing, the Commissioner finds that any activity or practice of an insurer participating in a joint underwriting or pooling mechanism is unfair or unreasonable, will tend to substantially lessen competition in any market, or is otherwise inconsistent with the provisions or purposes of this chapter and all other applicable statutes, the Commissioner may issue a written order specifying in what respects such activity or practice is unfair, unreasonable, anticompetitive, or otherwise inconsistent with the provisions of this chapter and all other applicable statutes and require the discontinuance of such activity or practice.

(2) The facilities of the applicant are adequate to enable it to furnish the services it proposes to furnish; and Every pool shall file with the Commissioner a copy of its constitution, articles of incorporation, agreement, or association, bylaws, rules and regulations governing its activities, its members, the name and address of a resident of this state upon whom notices, process, and orders of the Commissioner may be served, and any changes or modifications thereof.

(3) The applicant and its proposed plan of operation conform to the requirements of this chapter. Any residual market mechanism, plan, or agreement to implement such a mechanism, and any changes or amendments thereto, shall be submitted in writing to the Commissioner for approval, together with such information as may be reasonably required. The Commissioner shall approve such agreements if they foster:

(A) The use of rates which meet the standards prescribed by this chapter and all other applicable statutes; and

(B) Activities and practices not inconsistent with the provisions of this chapter and all other applicable statutes.

(4) The Commissioner may review the operations of all residual market mechanisms to determine compliance with the provisions of this chapter and all other applicable statutes. If, after notice and hearing, the Commissioner finds that such mechanisms are violating the provisions of this chapter or any other applicable statutes, the Commissioner may issue a written order to the parties involved specifying in what respects such operations violate the provisions of this chapter or any other applicable statutes. The Commissioner may further order the discontinuance or elimination of any such operation.

(c) Otherwise, but only after hearing upon notice, the Commissioner shall in writing deny the application and notify the applicant of his decision and his reasons therefor.

(d) The Commissioner may grant an application in part only and issue a license to act as a rating organization for one or more of the classes of insurance or subdivisions thereof or class of risk or a part or combination thereof as are specified in the application if the applicant qualifies for only a portion of the classes applied for.

(e) Licenses issued pursuant to this Code section shall remain in effect until revoked as provided in this chapter.

33-9-15.

(a) Notwithstanding Code Section 33-9-14, each rating organization possessing a license of indefinite term pursuant to such Code section shall owe and pay to the Commissioner an annual fee as provided in Code Section 33-8-1 in advance on account of such license until its final termination. Such fee shall be for periods commencing on July 1 of each year and ending on June 30 and shall be due and payable on March 1 of each year and shall be delinquent on April 1 of each year Agreements shall be made among admitted property and casualty insurers with respect to the equitable apportionment among them of property and casualty insurance which may be afforded applicants who are in good faith entitled to but who are unable to procure such insurance through ordinary methods upon the determination by the Commissioner in writing that an agreement relative to a given kind or kinds of property and casualty insurance is necessary to protect the health, property, and welfare of the citizens of Georgia. All of the agreements shall be subject to the approval of the Commissioner and upon his or her approval shall have the effect of rules and regulations promulgated by the Commissioner.

(b) All of the agreements shall be submitted in writing to the Commissioner for his or her consideration and approval within the period of time specified by the Commissioner in his or her determination, as provided for in this Code section, together with such information as he or she may reasonably require. The approval of the agreements shall comply with the requirements of the rule-making process as set forth in Code Section 33-2-9, as now or hereafter amended. The Commissioner shall approve only such agreements as are found by him or her to contemplate the use of rates which meet the standards prescribed by this chapter and activities and practices that are not unfair, unreasonable, or otherwise inconsistent with this chapter.

(1) The Commissioner may require that any rates contemplated to be used under this Code section shall be approved by him or her prior to their use;

(2) The Commissioner may declare that any policies, contracts, or rates used pursuant to any agreement or plan established under this Code section shall be the exclusive policies, contracts, or rates authorized to be used in Georgia for the kind or kinds of property and casualty insurance; and he or she may prohibit the use by any person of policies, contracts, or rates in this state which are different from those established in accordance with this Code section; and

(3) The Commissioner may amend or modify in whole or in part and may adopt any agreement submitted to him or her in accordance with this Code section. If no agreement is submitted within the time prescribed by the Commissioner or if after a hearing the agreement submitted is unacceptable to the Commissioner, the Commissioner may on his or her own motion promulgate and adopt a reasonable plan to implement this Code section which plan shall become effective on a date not sooner than ten days after such motion as specified by the Commissioner in his or her order.

(d) At any time after the agreements are in effect, the Commissioner may review the practices and activities of the adherents to such agreements and, if after a hearing upon not less than ten dayś notice to such adherents, he or she finds that any such practice or activity is unfair or unreasonable, or is otherwise inconsistent with this chapter, he or she may issue a written order to the parties of the agreement specifying in what respect the practice or act is unfair or unreasonable or otherwise inconsistent with this chapter and requiring the discontinuance of the practice or activity. For good cause, and after hearing upon not less than ten dayś notice to the adherents thereto, the Commissioner may revoke approval of the agreement.

(1) The Commissioner shall approve all rates contemplated to be used under this Code section prior to their use;

(2) The Commissioner shall approve any policies or contracts used pursuant to any agreement or plan established under this Code section, and such policies or contracts shall be used exclusively in this state for those kinds of insurance. The use by any person of any policies or contracts which are different from those established in accordance with this Code section shall be prohibited; and

(f) The powers contained in this Code section are cumulative and shall be in addition to all other powers of the Commissioner contained elsewhere in this title or under the laws of this state.

33-9-16.

(a) Subject to the approval of the Commissioner, licensed rating organizations may make reasonable rules governing eligibility for membership The Commissioner may examine any insurer, pool, advisory organization, or residual market mechanism to ascertain compliance with this chapter.

(b) Every insurer, pool, advisory organization, and residual market mechanism shall maintain adequate records from which Commissioner may determine compliance with the provisions of this chapter. Such records shall contain the experience, data, statistics, and other information collected or used and shall be available to the Commissioner for examination or inspection upon reasonable notice.

(c) The reasonable cost of an examination made pursuant to this Code section shall be paid by the examined party upon presentation to it of a detailed account of such costs.

(d) The Commissioner may accept the report of an examination made by the insurance supervisory official of another state in lieu of an examination under this Code section.

33-9-17.

If two or more insurers having a common ownership or operating in this state under common management are admitted for the classes or types of insurance for which a rating organization is licensed to make rates, the rating organization may require as a condition to membership or subscribership of one or more that all the insurers shall become members or subscribers The Commissioner may, after public notice and hearing, exempt any line of insurance from any or all of the provisions of this chapter for the purpose of relieving such line of insurance from filing or any otherwise applicable provisions of this chapter.

33-9-18.

(a) No advisory organization shall conduct its operations in this state unless and until it has filed with the Commissioner a copy of its constitution, articles of incorporation, agreement, or association, and of its bylaws or rules and regulations governing its activities, all duly certified by the custodian of the originals of the constitution, articles of incorporation, agreement or association, and bylaws or rules and regulations; a list of its members and subscribers; and the name and address of a resident of this state upon whom notices or orders of the Commissioner or process may be served Nothing in this chapter shall be construed to prohibit or regulate the payment of dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers. A plan for the payment of dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers shall not be deemed a rating plan or system.

(b) Each advisory organization shall notify the Commissioner promptly of every change in its constitution, its articles of incorporation, agreement, or association, and of its bylaws or rules and regulations governing the conduct of its business; its list of members and subscribers; and the name and address of the resident of this state designated by it upon whom notices or orders of the Commissioner or process affecting the organization may be served.

(d) Each advisory organization shall pay an annual fee as provided in Code Section 33-8-1.

33-9-19.

(a) Every group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance through the group, association, or organization or by standing agreement among the members of the group, association, or organization shall file with the Commissioner a copy of its constitution, its articles of incorporation, agreement, or association, and of its bylaws or rules and regulations governing its activities, all duly certified by the custodian of the originals of such constitution, articles of incorporation, agreement or association, bylaws or rules and regulations; a list of its members; and the name and address of a resident of this state upon whom notices or orders of the Commissioner or process may be served The Commissioner may impose, after notice and hearing, a penalty determined in accordance with Code Section 33-2-24.

(b) Each group, association, or other organization shall notify the Commissioner promptly of every change in its constitution, its articles of incorporation, agreement, or association, and its bylaws, rules, and regulations governing the conduct of its business; its list of members; and the name and address of the resident of this state designated by it upon whom notices or orders of the Commissioner or process affecting the group, association, or organization may be served Technical violations arising from systems or computer errors of the same type shall be treated as a single violation. In the event of an overcharge, if the insurer makes restitution including payment of interest, no penalty shall be imposed.

(c) No group, association, or organization shall engage in any unfair or unreasonable practice with respect to its activities The Commissioner may suspend or revoke the license of any insurer, advisory organization, or statistical agent which fails to comply with an order of the Commissioner within the time prescribed by such order or any extension thereof which the Commissioner may grant.

(d) Each joint underwriting and joint reinsurance organization shall pay an annual fee as provided in Code Section 33-8-1 The Commissioner may determine when a suspension of license shall become effective and the period of such suspension, which the Commissioner may modify or rescind in any reasonable manner.

(e) No penalty shall be imposed and no license shall be suspended or revoked except upon a written order of the Commissioner, stating his or her findings, made after notice and hearing.

33-9-20.

(a) Every insurer, rating organization, or advisory organization and every group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance shall maintain reasonable records of the type and kind reasonably adapted to its method of operation, of its experience or the experience of its members, and of the data, statistics, or information collected or used by it in connection with the rates, rating plans, rating systems, underwriting rules, policy or bond forms, surveys, or inspections made or used by it so that the records will be available at all reasonable times to enable the Commissioner to determine whether the organization, insurer, group, or association and, in the case of an insurer or rating organization, every rate, rating plan, and rating system made or used by it complies with this chapter as applicable to it. The maintenance of the records in the office of a licensed rating organization of which an insurer is a member or subscriber will be sufficient compliance with this Code section for any insurer maintaining membership or subscribership in the organization to the extent that the insurer uses the rates, rating plans, rating systems, or underwriting rules of the organization. Such records shall be maintained in an office within this state and shall be made available for examination or inspection by the Commissioner at any time.

(b) Each insurer shall maintain statistics under statistical plans compatible with the rating plans used. An insurer shall report its statistics through a recognized statistical agency or advisory organization. No insurer shall be required to report its statistics through such agencies or organizations with respect to any unique or unusual risks or with respect to any risks rated in accordance with Code Section 33-9-32 or any lines or sublines of insurance for which such agencies or organizations do not promulgate rates or rating systems. Moreover, the Commissioner shall withhold from public inspection any proprietary information of any insurer, agency, or organization Any order, ruling, finding, decision, or other act of the Commissioner made pursuant to this chapter shall be subject to judicial review in accordance with Chapter 2 of this title.

33-9-21.

(a) Every insurer shall maintain with the Commissioner copies of the rates, rating plans, rating systems, underwriting rules, and policy or bond forms used by it. The maintenance of rates, rating plans, rating systems, underwriting rules, and policy or bond forms with the Commissioner by a licensed rating organization of which an insurer is a member or subscriber will be sufficient compliance with this Code section for any insurer maintaining membership or subscriberships in such organization, to the extent that the insurer uses the rates, rating plans, rating systems, underwriting rules, and policy or bond forms of such organization; provided, however, the Commissioner, when he or she deems it necessary, without compliance with the rule-making procedures of this title or Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act':

(1) May require any domestic, foreign, and alien insurer to file the required rates, rating plans, rating systems, underwriting rules, and policy or bond forms used independent of any filing made on its behalf or as a member of a licensed rating organization, as the Commissioner shall deem to be necessary to ensure compliance with the standards of this chapter and Code Section 34-9-130 and for the best interests of the citizens of this state;

(2) Shall require, not later than July 30, 1990, each domestic, foreign, and alien insurer, writing or authorized to write workerś compensation insurance in this state, to file such insureŕs own individual rate filing for premium rates to be charged for workerś compensation insurance coverage written in this state. Such premium rates shall be developed and established based upon each individual insureŕs experience in the State of Georgia to the extent actuarially credible. The experience filed shall include the loss ratios, reserves, reserve development information, expenses including commissions paid and dividends paid, investment income, pure premium data adjusted for loss development and loss trending, profits, and all other data and information used by that insurer in formulating its workerś compensation premium rates which are used in this state and any other information or data required by the Commissioner. In establishing and maintaining loss reserves, no workerś compensation insurer shall be allowed to maintain any excess loss reserve for any claim or potential claim for more than 90 days after the amount of liability for such claim or potential claim has been established, whether by final judgment, by settlement agreement, or otherwise. This limitation on the maintenance of loss reserves shall be enforced through this Code section, as well as through Code Section 33-9-23, relating to examination of insurers, Code Section 34-9-135, relating to required disclosure of costs by workerś compensation insurers, and any other appropriate enforcement procedures. The Commissioner is authorized to accept such rate classifications as are reasonable and necessary for compliance with this chapter. A rate filing required by this paragraph shall be updated by the insurer at least once every two years, the initial two-year period to be calculated from July 30, 1990; and

(3) As used in paragraph (2) of this subsection, the term 'excess loss reserve' means any reserve amount in excess of the reserve required by law Notice requirements. All notices rendered pursuant to the provisions of this chapter shall be in writing and shall state clearly the nature and purpose of the hearing. All relevant facts, statutes, and rules shall be specified so that respondent is fully informed of the scope of the hearing including specific allegations, if any. If a hearing is required, all notices shall designate a hearing date at least 14 days from the date of the notice unless such minimum notice period is waived by the respondent.

(b) Any domestic, foreign, or alien insurer that is authorized to write insurance in this state must file with the Commissioner any rate, rating plan, rating system, or underwriting rule for all personal private passenger motor vehicle insurance. No such rate, rating plan, rating system, or underwriting rule will become effective, nor may any premium be collected by any insurer thereunder, unless the filing has been received by the Commissioner in his or her office and such filing has been approved by the Commissioner or a period of 45 days has elapsed from the date such filing was received by the Commissioner during which time such filing has not been disapproved by the Commissioner. The Commissioner shall be authorized to extend such 45 day period by no more than 55 days at his or her discretion. If a filing is disapproved, notice of such disapproval order shall be given within 100 days of receipt of filing by the Commissioner, specifying in what respects such filing fails to meet the requirements of this chapter. The filer shall be given a hearing upon written request made within 30 days after the issuance of the disapproval order, and such hearing shall commence within 30 days after such request unless postponed by mutual consent. Such hearing, once commenced, may be postponed or recessed by the Commissioner only for weekends, holidays, or after normal working hours or at any time by mutual consent of all parties to the hearing. The Commissioner may also, at his or her discretion, recess any hearing for not more than two recess periods of up to 15 consecutive days each. In connection with any hearing or judicial review with respect to the approval or disapproval of such rates, the burden of persuasion shall fall upon the affected insurer or insurers to establish that the challenged rates are adequate, not excessive, and not unfairly discriminatory. After such a hearing, the Commissioner must affirm, modify, or reverse his or her previous action within the time period provided in subsection (a) of Code Section 33-2-23 relative to orders of the Commissioner. The requirement of approval or disapproval of a rate filing by the Commissioner under this subsection shall not prohibit actions by the Commissioner regarding compliance of such rate filing with the requirements of Code Section 33-9-4 brought after such approval or disapproval Hearings. All hearings pursuant to the provisions of this chapter shall be conducted in accordance with Chapter 13 of Title 50, the Georgia Administrative Procedures Act, to the extent such provisions are consistent with the procedural requirements contained in this chapter.

(c) When a rate filing of an insurer required under subsection (b) of this Code section is not accompanied by the information upon which the insurer supports the filing and the Commissioner does not have sufficient information to determine whether the filing meets the requirements of this chapter, then the Commissioner must request in writing, within 20 days of the date he or she receives the filing, the specifics of such additional information as he or she requires and the insurer shall be required to furnish such information and in such event the 45 day period provided for in subsection (b) of this Code section shall commence as of the date such information is furnished.

(d) Any domestic, foreign, or alien insurer that is authorized to write insurance in this state must file with the Commissioner any rate, rating plan, rating system, or underwriting rule at least 45 days prior to any indicated effective date for all insurance other than personal private passenger motor vehicle insurance. No rate, rating plan, rating system, or underwriting rule required to be filed under this subsection will become effective, nor may any premium be collected by any insurer thereunder, unless the filing has been received by the Commissioner in his office not less than 45 days prior to its effective date.

(e) When a rate filing of an insurer required under subsection (d) of this Code section results in any overall rate increase of 10 percent or more within any 12 month period, the Commissioner shall order an examination of that insurer to determine the accuracy of the claim reserves, the applicability of the claim reserve practices for the loss data used in support of such filing, and any other component of the rate filing; provided, however, that in the event the overall increase is less than 25 percent within any 12 month period and the Commissioner affirmatively determines that he or she has sufficient information to evaluate such rate increase and that the cost thereof would not be justified, he or she may waive all or part of such examination. In all other rate filings required under subsection (d) of this Code section, the Commissioner may order an examination of that insurer as provided in this subsection. Such examination shall be conducted in accordance with the provisions of Chapter 2 of this title. Upon notification by the Commissioner of his or her intent to conduct such examination, the insurer shall be prohibited from placing the rates so filed in effect until such examination has been reviewed and certified by the Commissioner as being complete. Such examination, if conducted by the Commissioner, shall be reviewed and certified within 90 days of the date such rate, rating plan, rating system, or underwriting rule is filed; provided, however, if the Commissioner makes an affirmative finding that the examination may not be completed within the 90 day period, he or she may extend such time for one additional 60 day period. Any examination required under this Code section shall be conducted in accordance with Chapter 2 of this title.

(f) Notwithstanding the provisions of subsection (d) of this Code section, in the event the filing of any rate, rating plan, rating system, or underwriting rule under subsection (d) of this Code section is not necessary, in the judgment of the Commissioner, to accomplish the purposes of this chapter as set forth in Code Section 33-9-1, then the Commissioner may exempt all domestic, foreign, and alien insurers from being required to file such rate, rating plan, rating system, or underwriting rule.

(g) Filings required pursuant to this Code section shall be accompanied by a fee or fees as provided in Code Section 33-8-1.

33-9-21.1.

In order to facilitate the handling of form and rate filings of certain types of miscellaneous casualty insurance which prior to July 1, 1995, has been filed generally under paragraph (10) of Code Section 33-7-3, the following types of casualty insurance shall be