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Committee hears bill to streamline rate filings for experience-rated group disability insurance
Summary
House Bill 1230 would allow insurers to submit single filings for experience-rated group disability income plans (instead of separate filings per group) while providing the Office of the Insurance Commissioner enough detail to replicate rates; insurers testified in support and no vote was recorded.
House Bill 1230, a measure to clarify and streamline rate-filing procedures for experience-rated group disability income insurers, was the subject of a public hearing Wednesday before the Senate Business, Financial Services, Gaming & Trade Committee.
Committee staff (John Kim) briefed senators that the bill aligns the statutory filing process so insurers that develop rates based on a single group's experience can submit a single filing with the Office of the Insurance Commissioner (OIC) that includes rating formulas and sufficient detail for the OIC to replicate rates for each experience-rated group. The companion bill, Senate Bill 5141, previously passed the Senate, and the House version passed the House 97–0.
John Mangan, regional vice president for state relations at the American Council of Life Insurers, testified in support and said the change would reduce administrative burden without removing OIC oversight. "This streamlining of our ability to file experience rates for groups who want disability coverage is very important and has good benefits for Washington's employers…It essentially allows us to provide a tailored specific premium rate to groups that really matches their demographics and their history," Mangan said.
Committee members heard that the bill maintains OIC’s authority to review and replicate filings. Stakeholders told senators the change should improve access to affordable coverage for employers by allowing insurers to target rates to group experience. No committee vote was taken during the hearing.
Ending note: supporters said the bill preserves regulatory oversight while reducing duplicative filings, which insurers contend will broaden access and competitiveness for group disability coverage.
