P&CIllinoismedium
Under 215 ILCS 5/463, what role may an advisory organization such as ISO play with respect to Illinois P&C rates?
It may file prospective loss costs or reference filings that member insurers may adopt or modify
BIt may set binding rates that all member insurers must charge
CIt may collect premiums on behalf of member insurers
DIt must obtain prior approval from the General Assembly before filing
Why this is the answer
Under 215 ILCS 5/463, licensed advisory organizations such as ISO and AAIS may file prospective loss costs and reference filings with the IDOI. These filings provide pooled industry loss data and policy forms but do not bind member insurers. Each insurer independently decides whether to adopt, modify, or replace the advisory filing through its own loss cost multiplier or rate filing.
Studying for the Illinois Property & Casualty exam?
This question comes from our P&C bank. Take a free practice test — no signup.