House requires insurers to disclose top factors behind renewal premium increases on request

The House passed House Bill 2563A, a consumer-disclosure measure that requires insurers, upon request, to provide the top four factors that most influenced a premium increase when a homeowner or certain personal insurance policies are renewed.

Representative Chi Chi, carrying the bill for the Department of Consumer and Business Services (DCBS) as an agency-request measure, described it as an answer to frequent constituent inquiries about why premiums rise. The measure requires insurers, upon request, to explain the top four factors affecting an increase and to do so in clear, nontechnical language.

Opponents raised concerns about regulatory burden and potential unintended consequences. Representative Boyce warned that adding regulatory requirements may increase insurer costs and contribute to higher rates or insurers exiting the market; he cited national disasters and market strain as context for insurer behavior. Another floor speaker cautioned that tighter regulation could signal a business climate concern.

Supporters noted that comparable requirements exist in neighboring Washington and that the disclosure is triggered only if a policyholder asks—Chi Chi clarified it does not apply automatically to every policy renewal.

The House proceeded to final passage; the clerk recorded that House Bill 2563A received the constitutional majority and was declared passed.

What the bill does: requires insurers (for covered home and personal lines) to provide, upon policyholder request, the top four factors that drove a renewal premium increase and to explain those factors in plain language.

Implementation note: DCBS requested the legislation and was active in the committee process; supporters said insurers had moved to neutral in committee.