§ 20-387 — Delegation of rate making and rate filing obligations

A. An insurer may establish rates and supplementary rate information based on the factors in section 20-384 using, if desired, the recommendations of an advisory organization, or rates and supplementary rate information prepared by a rate service organization, with average expense factors determined by the rate service organization or with such modification for its own expense and loss experience as the credibility of that experience allows.

B. An insurer may discharge its obligations pursuant to section 20-385 by giving notice to the director that it uses rates and supplementary rate information prepared by a designated rate service organization, with such information about modifications of the rates as is necessary to inform the director. The insurer's rates and supplementary rate information are those filed by the rate service organization, including any amendments to the rate as filed, subject to the modifications filed by the insurer.

C. Licensed rate service organizations, advisory organizations and admitted insurers are authorized to exchange information and experience data with rate service organizations, advisory organizations and insurers in this and other states and may consult with them with respect to rate making.