Insurers and data organizations would file rating models with regulators

A modeling and data organization would file models used by insurers to set rates with the insurance director. This covers organizations that help at least two insurers or rate service organizations set rates by providing data, statistics or recommendations. It excludes certain joint underwriting groups, consultants and insurer employees. The director may require supporting data or other information needed to check whether a model follows insurance law. Filed models, supporting information and model results would be confidential and generally not open to subpoenas or public-records requests. The supplied text does not state when this filing requirement would begin or end.

Insurance provisions would use the term “modeling and data organization” for organizations that help insurers set rates and would apply filing, examination and hearing rules to them. The term covers a person or organization serving two or more insurers or rate service organizations with rate-related data, statistics or recommendations. Certain joint underwriting groups, consultants and insurer employees are excluded. Organizations would file formation documents, applicable member or subscriber lists and an Arizona service contact with the director. The director could examine covered organizations and could order them to stop unfair or unreasonable practices. Covered organizations could request hearings and, where allowed, seek court review of the director’s orders or decisions. The supplied text does not state a separate effective date for these terminology and oversight provisions.

The insurance director could adopt rules governing reinsurance arrangements for certain life, health and annuity products. The listed products include some life policies, universal life policies, variable annuities, long-term care insurance and other products covered by national model requirements. Rules could require insurers to use a national valuation manual when calculating required security, when applicable. The rules would not apply to certain assuming insurers that meet specified multistate licensing, certification or capital requirements. Rules could cover policies issued on or after January 1, 2015, and some older policies when related risk was transferred on or after that date.