The proposed bill amends section 20-344 of the Arizona Revised Statutes, which pertains to the transaction of insurance business. The bill introduces changes to the way rating organizations and insurers handle statistical plans and subclassifications.

Under the new bill, a rating organization may use its own statistical plan without the need to have it designated by the director, as long as it does not materially conflict with the uniform statistical plan and is approved by the director. Additionally, insurers are now explicitly allowed to develop subclassifications of the uniform classification plan directly or through their rating organization. These subclassifications and their rates must be filed with the director and undergo a waiting period of at least fifteen days before becoming effective. The director has the authority to disapprove the subclassification if it is inconsistent with the uniform plans or if the rate does not meet established standards.

Statutes affected:
Introduced Version: 20-344