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Committee reports bill requiring insurers to provide rate-transparency reports with filings and to consumers
Summary
Senate Bill 136 was reported favorable after sponsor testimony. The measure would require insurers to include rate-transparency reports with certain rate filings and to give consumers personalized rate-transparency reports upon new policy offers or renewals, including cost breakdowns and other disclosures.
The Senate Insurance Committee reported Senate Bill 136 favorable after the sponsor described a requirement that insurers include a rate-transparency report with rate filings for private passenger auto and homeowners insurance and provide consumers a personalized report when offering a new policy or at renewal.
The sponsor said the reports would list items such as the cost of reinsurance, claims costs, defense and containment costs, fees and commissions, profit and contingencies and other relevant risk factors. Committee testimony described a proposed graphical chart to show purchasers how premium dollars are allocated and noted the department would adopt rules for the form.
A department witness described additional items to be included: any major adverse findings against the company, whether the insurer uses affiliate entities or managing general agents to perform insurer functions, changes in total insured value from the prior year, and contact information for the department.
The sponsor said the bill is intended to be consumer-friendly and to help consumers "be educated about where their premium dollars are going," and he cited a similar proposal in another state as an example. With a motion from Senator DuPlessis to move the bill favorable and no recorded opposition, Senate Bill 136 was reported favorable.
The transcript includes committee discussion of the list of items to appear in the rate-transparency report and indicates the department would write rules and a graphic to accompany the disclosures. The record does not include a fiscal note or the precise rule text; those would be developed later if the bill advances.
