What Is a Rating Organization?
For Workers’ Compensation a Rating Organization receives and analyzes and interprets data (statistical data, past and present loss experience, catastrophe hazards, insurer expenses and other outlays) and determines a rating system (manual of risk classifications, rules and rates, and rating plan) applicable to a type of insurance. Insurers that are members of a rating organization must use the rating organization's rating system as their own except that an insurer may file a "deviation," which is either a uniform percentage increase or decrease to the rating system, or changes from the rate rule established for a classification of risk to reflect the risk profile for a more specific subcategory of risk. ARS 20-361.
Who Must Be Licensed?
A corporation, an unincorporated association, a partnership or an individual, whether located within
or outside this state, may apply to the director for a license as a rating organization for insurance. ARS § 20-361.