2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 515A - WORKERS' COMPENSATION LIABILITY INSURANCE
515A.6 - RATING ORGANIZATIONS.

        515A.6  RATING ORGANIZATIONS.
         1. 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 a license as a
      rating organization for such kinds of insurance, or subdivision or
      class of risk or a part or combination thereof as are specified in
      its application and shall file with the application all of the
      following:
         (1)  A copy of its constitution, its articles of agreement or
      association or its certificate of incorporation, and of its bylaws,
      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 such
      rating organization may be served.
         (4)  A statement of its qualifications as a rating organization.
         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 agreement or association or
      certificate of 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 kinds of
      insurance, or subdivisions or classes of risks or parts or
      combinations 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.
         c.  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 one hundred dollars.

         d.  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 this
      subsection.
         e.  Every rating organization shall notify the commissioner
      promptly of every change in any of the following:
         (1)  Its constitution, its articles of agreement or association,
      or its certificate of incorporation, and its bylaws, rules and
      regulations governing the conduct of its business.
         (2)  Its list of members and subscribers.
         (3)  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 rating organization may be served.
         2.  Subject to rules and regulations which 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 kind of insurance, 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 such rules and
      regulations shall be given to subscribers.  Each rating organization
      shall furnish its rating services without discrimination to its
      members and subscribers.  The reasonableness of any rule or
      regulation 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 such subscriber or insurer.  If
      the commissioner finds that such rule or regulation is unreasonable
      in its application to subscribers, the commissioner shall order that
      such rule or regulation shall not be applicable to subscribers.  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 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.

         3.  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.
         4.  Cooperation among rating organizations or among rating
      organizations and insurers in rate making or in other matters within
      the scope of this chapter is hereby authorized, provided the filings
      resulting from such cooperation are subject to all the provisions of
      this chapter which are applicable to filings generally.  The
      commissioner may review such cooperative activities and practices and
      if, after a hearing, the commissioner finds that any such activity or
      practices is unfair or unreasonable or otherwise inconsistent with
      the provisions of this chapter, the commissioner may issue a written
      order specifying in what respects such activity or practice is unfair
      or unreasonable or otherwise inconsistent with the provisions of this
      chapter, and requiring the discontinuance of such activity or
      practice.
         5.  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.  Such 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 so submitted for examination shall be confidential.
         6.  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.
         7.  Notwithstanding any other provision of the Code, the
      commissioner of insurance shall provide for a hearing in a proceeding
      involving a workers' compensation insurance rate filing by a licensed
      rating organization in accordance with the provisions of this
      subsection and rules promulgated by the commissioner of insurance
      pursuant to chapter 17A.  Except as otherwise provided herein, the
      provisions of this subsection shall not be subject to the
      requirements of chapter 17A.  The procedures for such hearing shall
      be as follows:
         a.  The commissioner shall provide notice of the filing of the
      proposed rates at least thirty days before the effective date of the
      proposed rates by publishing a notice on the internet website of the
      insurance division of the department of commerce.
         b.  A public hearing shall be held on the proposed rates by
      the commissioner of insurance if within fifteen days of the date of
      publication a workers' compensation policyholder or an established
      organization with one or more workers' compensation policyholders
      among its members files a written demand with the commissioner of
      insurance for a hearing on the proposed rates.
         c.  The commissioner of insurance shall hold the hearing
      within twenty days after receipt of the written demand for a hearing
      and shall give not less than ten days written notice of the time and
      place of the hearing to the person or association filing the demand,
      to the rating organization, and to any other person requesting such
      notice.
         d.  At any such hearing, the rating organization shall bear
      the burden of proof to support the proposed rates by a preponderance
      of the evidence.  The person or association requesting the hearing,
      and any other person admitted as a party to the proceeding, shall be
      given the opportunity to respond and introduce evidence and arguments
      on all the issues involved.
         e.  Within fifteen days after the start of the hearing, the
      commissioner of insurance will approve or disapprove the proposed
      rates and specify the reasons therefor.  The commissioner of
      insurance may suspend or postpone the effective date of the proposed
      rates pending the hearing and written decision thereon.
         f.  Judicial review of the decision of the commissioner of
      insurance on such rates may be sought in accordance with the
      provisions of chapter 17A.
         g.  Absent a request for a hearing as provided in paragraph
      "b", the commissioner shall issue an order approving or
      disapproving the proposed rates.
         h.  The waiting period for a workers' compensation insurance
      rate filing shall commence no earlier than the date that notice of
      the insurance rate filing is published.  

         Section History: Early Form

         [C50, 54, 58, 62, § 515A.6, 515B.6; C66, 71, 73, 75, 77, 79, 81, §
      515A.6] 

         Section History: Recent Form

         2006 Acts, ch 1117, §69; 2007 Acts, ch 22, §89; 2008 Acts, ch
      1123, §33--35
         Referred to in § 515A.4, 515A.12