Senate Bill No. 504
               Senate Bill No. 504

               PUBLIC ACT NO. 98-23


AN     ACT     CONCERNING    INSURANCE    ADVISORY
ORGANIZATIONS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  38a-673  of  the  general statutes is
repealed and the following is substituted in  lieu
thereof:
    (a)  No  advisory  organization  shall conduct
its operations in this state unless and  until  it
has  filed  with  the Insurance Commissioner (1) a
copy   of   its    constitution,    articles    of
incorporation,  agreement  or  association and the
bylaws, or rules  and  regulations  governing  its
activities, all duly certified by the custodian of
the originals thereof, (2) a list of  its  members
and subscribers, and (3) the name and address of a
resident of this state upon whom notices or orders
of the commissioner or process may be served.
    (b)  Every  such  advisory  organization shall
notify  the  Insurance  Commissioner  promptly  of
every  change in its constitution, its articles of
incorporation, agreement or  association,  and  of
its  bylaws,  rules  and regulations governing the
conduct of its business, its list of  members  and
subscribers  and  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 organization may be served.
    (c)  With  respect  to personal and commercial
risk insurance, no such advisory organization  may
compile  for  or distribute to insurers generally,
recommendations relating  to  rates  that  include
profit,  general  and  other acquisition expenses,
commission and brokerage, taxes  or  licenses  and
fees,   nor   file   rates,   supplementary   rate
information or supporting information on behalf of
an insurer that includes profit, general and other
acquisition expenses,  commission  and  brokerage,
taxes  or  licenses  and  fees,  provided that the
provisions of this subsection may be waived by the
Insurance  Commissioner  when  it  would be in the
public interest and shall not  apply  to  residual
markets.  Any  advisory organization may, upon the
request of any insurer,  produce  rates  for  such
insurer  based upon such insurer's exposure, loss,
expense and profit data. The  provisions  of  this
subsection   shall   be   applicable  to  services
rendered  by   insurance   rating   and   advisory
organizations in relation to workers' compensation
insurance on and after October  1,  1989,  and  to
other such services on and after July 1, 1990.
    (d)  ANY  ADVISORY  ORGANIZATION  MAY COLLECT,
COMPILE AND  DISSEMINATE  TO  INSURERS  AND  OTHER
PERSONS  COMPILATIONS OF PAST AND CURRENT PREMIUMS
OF INSURERS.
    [(d)]  (e) No such advisory organization shall
engage in any unfair or unreasonable practice with
respect to such activities.

Approved April 29, 1998