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Senate adopts rate-transparency provisions requiring insurers to file annual reports
Summary
Senate Bill 136’s conference committee report was adopted; the measure requires admitted insurers to file annual rate-transparency reports with the insurance commissioner, including a graphical breakdown of rating components and empowers the commissioner to disapprove noncompliant filings.
Senate Bill 136, a measure addressing rate transparency for insurers, moved through the Senate with adoption of the conference committee report on the floor.
Sponsor described the measure as requiring "every admitted insurer, licensed or otherwise, for homeowners or private passenger automobile insurance" to file an annual rate-transparency report based on the insurer’s most recently approved rate by Jan. 1 each year. "If the commissioner determines that a report, filed pursuant to the section, does not comply with the requirements of the section, the commissioner shall disapprove the filing," the sponsor said. The report must be substantially similar to a model promulgated by the commissioner and include a graphical representation identifying percentage breakdowns of rating components.
Senator Talbot asked for concurrence with the conference committee report and it was adopted by the Senate on a recorded tally announced by the clerk. The adopted conference committee report makes the transparency requirements standard and grants the insurance commissioner authority to disapprove filings that do not comply with statutory requirements.
Why it matters: The statute formalizes an annual public-facing disclosure that is intended to show how insurers derive premiums for homeowners and private passenger automobile policies and gives the commissioner enforcement authority over the quality of those disclosures. This affects insurers, regulators and policyholders who seek clearer information about rate components.
The Senate adopted the conference committee report on the floor; the conference report adjusts adopted floor amendments and clarifies reporting and disapproval procedures.
