P&CGeorgiamedium

Under O.C.G.A. § 33-9-2, which of the following is an advisory organization function that an organization MAY perform for Georgia P&C insurers?

Q: Under O.C.G.A. § 33-9-2, which of the following is an advisory organization function that an organization MAY perform for Georgia P&C insurers?

Prepare policy forms and furnish loss statistics — O.C.G.A. § 33-9-2 defines an advisory organization as one that prepares policy forms or makes underwriting rules incident to, but not including, the making of rates, or that collects and furnishes loss or expense statistics to insurers and rating organizations, acting in an advisory rather than a rate-making capacity. Making rates is the work of a licensed rating organization, and even a rating organization's rates cannot bind insurers: § 33-9-9 bars members from agreeing to adhere to them. Advisory organizations also cannot adjudicate claims or issue licenses.

ASet final rates that bind all member insurers

Prepare policy forms and furnish loss statistics

CAdjudicate claim disputes between insurers and consumers

DIssue licenses to producers on behalf of OCISF

Why this is the answer

O.C.G.A. § 33-9-2 defines an advisory organization as one that prepares policy forms or makes underwriting rules incident to, but not including, the making of rates, or that collects and furnishes loss or expense statistics to insurers and rating organizations, acting in an advisory rather than a rate-making capacity. Making rates is the work of a licensed rating organization, and even a rating organization's rates cannot bind insurers: § 33-9-9 bars members from agreeing to adhere to them. Advisory organizations also cannot adjudicate claims or issue licenses.

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