insurance; modeling organizations; predictive models
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill updates Arizona’s insurance regulations to address the increasing use of data and modeling organizations in rate setting. It clarifies the roles of these organizations, requiring them to file models and supporting data with the Department of Insurance and emphasizing the importance of data accuracy and compliance with national standards. The bill also modifies existing statutes to align with these changes and strengthen oversight of rate-making processes.
Key provisions
- Requires insurers to report loss and expense experience, investment income, and administrative expenses to designated modeling and data organizations.
- Designates modeling and data organizations to gather and compile insurance data, subject to director’s rules.
- Establishes requirements for advisory organizations modeling and data organizations to file constitutional documents and member lists with the director.
- Mandates that insurers use models and supporting data provided by modeling and data organizations, subject to director review.
- Defines key terms related to rate making, including ‘modeling and data organization,’ ‘loss cost adjustment,’ and ‘prospective loss costs.’
- Updates rules regarding reinsurance arrangements, specifically addressing guarantees in life and health insurance policies.
- Clarifies the director’s authority to examine rating organizations and advisory organizations modeling and data organizations.
- Requires modeling and data organizations to file models with the director and provides for director review and verification.
Bill text
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Sponsors
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2 on record
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Cosponsor
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