Rate Service Organization

WHAT IS A RATE SERVICE ORGANIZATION

rate service organization is a person other than a single insurer who assists insurers by compiling and furnishing loss or expense statistics and recommending, making or filing rates, forms or supplementary rate information. Rate service organization does not include a joint underwriting association, any actuarial or legal consultant, any employee of an insurer or insurers under common control or management, or their employees or manager.  ARS § 20-381.

WHO MUST BE LICENSED?

An entity cannot provide an insurer with the services defined for a rate services organization, and an insurer cannot utilize an entity to provide services defined for a rate service organization, unless the entity is licensed as a rate services organization. A licensed rate services organization cannot refuse to provide services to an Arizona-authorized insurer that offers to pay the fair and usual price for the services. ARS § 20-389.

Rate Service Organization

 

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All insurance professionals (both residents and nonresidents) can apply for licenses, renew licenses, and update addresses and phone numbers online through the National Insurance Producer Registry (NIPR), at www.nipr.com.  

NIPR license and renewal applications are easy to complete, and we can usually process them faster than applications that are mailed to us. NIPR charges a small transaction fee (around $5 to $7) to process a license application and fee payment.  Many people have found that overall, the added convenience plus the time and postage savings are worth paying the fee. 

USE NIPR FOR FREE to change an address, e-mail address or phone number!