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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2174: insurance; modeling organizations; predictive models
Sponsor: Representative Livingston, LD 28
Committee on Commerce
Summary of the Strike-Everything Amendment to HB 2174
Overview
Replaces statutory references of advisory organization with modeling and data organization and allows the organization to file models to be used by insurers.
History
Statute authorizes DIFI to adopt rules requiring each insurer licensed to write property or casualty insurance in this state to report its loss and expense experience, investment income, administrative expenses and other data for classes of risks. DIFI may designate one or more rate service organizations or advisory organizations to gather and compile the experience and data (A.R.S. § 20-235).
Each advisory organization that assists insurers who make their own filings or rating organizations in rate making, by the collection and furnishing of loss or expense statistics or the submission of recommendations, must file with DIFI: 1) a copy of its constitution, articles of agreement, or certificate of incorporation and a copy of its bylaws; 2) a list of its members; 3) the name and address of a resident upon whom notices or orders of DIFI may be served; and 4) an agreement that DIFI may examine the advisory organization (A.R.S. § 20-368).
Provisions
1. Redefines advisory organization as a modeling and data organization. (Sec. 5)
2. Authorizes a modeling and data organization to file with DIFI models to be used by insurers for making rates. (Sec. 3, 8)
3. Allows DIFI to require the modeling and data organization to file supporting data or any additional information related to the content of the model and the outputs of the model necessary to verify statutory compliance. (Sec. 8)
4. Specifies models, supporting data or additional information and model outputs are confidential and not subject to subpoena or public records requests. (Sec. 8)
5. Conforms the advisory organization's filing requirements as prescribed by statutes relating to rates and rating organizations to the requirements as prescribed by statutes relating to open competition rates and rating organizations. (Sec. 3)
6. Replaces the term advisory organization with modeling and data organizations. (Sec. 1, 2, 3, 6, 7, 8, 9, 10, 11, 12, 13)
7. Makes a conforming change. (Sec. 4)
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11. Initials PB HB 2174
12. 2/7/2026 Page 0 Commerce
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