Sec. 1805.056. AUDIT. (a) The department shall require an annual audit of an advisory organization that provides statistics or other information to the department in a proceeding to set rates.
(b) The audit must:
(1) be conducted at the expense of the advisory organization under rules adopted by the commissioner; and
(2) examine the advisory organization's method of collecting, analyzing, and reporting data to ensure the accuracy of data.
(c) The audit may examine source documents within individual companies.
(d) Except for individual company information, an audit is public information.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Structure Texas Statutes
Title 10 - Property and Casualty Insurance
Subtitle A - General Provisions
Chapter 1805 - Joint Underwriting and Advisory Organizations
Subchapter B. Advisory Organizations
Section 1805.051. License Application
Section 1805.052. Issuance of License; Term
Section 1805.053. Information Reported by Advisory Organization
Section 1805.054. Insurer's Authority to Subscribe to Advisory Organization
Section 1805.055. Submission, Receipt, and Use of Information by Insurer
Section 1805.057. Rate Filing Review
Section 1805.058. Prohibited Acts
Section 1805.059. Disciplinary Action