Advisory organization's permitted activities
An advisory organization (a group that helps insurance companies figure out rates and rules) is allowed to do certain things. These include collecting data, doing research, preparing rate information, and helping insurance companies set their own prices for workers' compensation insurance. A government official called the director can allow this rate data to be shared with insurance companies, employers who pay their own claims, and groups of employers — so they can use it to set their own prices. The director sharing this data does not mean the director gets to set the final prices when the market is competitive.
287.972. 's ted activities — may allow data to be . — 1. The advisory organization, in addition to other activities not prohibited, may:
(1) Develop statistical plans, including class definitions;
(2) Collect statistical data from members, or any other source;
(3) Prepare and pure premium rate data, adjusted for and , in accordance with its statistical plans as specified in 2 of this section. Such data and adjustments should be in sufficient detail so as to permit s to such pure based on their own rating methods or interpretations of underlying data;
(4) Prepare and distribute manuals of rating rules and rating schedules that do not contain any rules or schedules including rates of permitting calculation of final rates without outside the manuals;
(5) Distribute information that is filed with the director and open to public inspection;
(6) Conduct research and collect statistics in to discover, identify and classify information relating to causes or prevention of losses;
(7) Prepare and file policy forms and and consult with members, subscribers and others relative to their use and ;
(8) Collect, compile and distribute past and current prices of individual insurers if such information is made available to the general public;
(9) Conduct research and collect information to determine the impact of level changes on pure premium rates;
(10) Prepare and distribute rules and rating values for the . Calculate and individual risk modifications;
(11) Assist an individual insurer to develop rates, or when so by the individual insurer.
2. The will allow pure premium rate data, adjusted for loss development and loss trending, to be distributed, upon with the director with a final distribution in a format which allows a comparison of such data, adjusted for loss development without any trend factor, with a trend factor developed by the advisory organization, and with a trend factor developed by the director, for each of the various job classifications. Such data may be used, at their option, by insurers, , or , to determine their own final rates or charges for coverage. The to establish such a reporting format shall not be interpreted as allowing the director of the department of commerce and insurance to set final rates where a exists under the of sections 287.930 to 287.975.
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Source & history notes
(L. 1993 S.B. 251 § 34, A.L. 2005 S.B. 1 & 130)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.