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Committee approves HB6897 to extend flex-rating sunset for personal risk filings
Summary
The committee voted to extend the sunset date for flex rating in personal risk insurance filings; the substitute language delays the sunset, with presenters describing consumer protections that remain in place.
The Insurance and Real Estate Committee voted to send HB6897, which extends the sunset date for flex rating in personal risk insurance rate filings, to the floor with substitute language.
Presenters said the substitute delays the current sunset for certain personal lines (home, auto, marine, umbrella) and described flex rating as a tool that allows insurers to adjust rates more nimbly. They emphasized the committee was not debating flex rating itself but only an extension of the sunset date. Presenters said consumer protections govern how large rate increases or decreases can be and that the Department of Insurance regulates those limits.
Nut graf: Extending the flex-rating sunset would maintain the regulatory mechanism that lets insurers make more rapid rate adjustments for personal risk products; supporters argued it provides needed flexibility while protections on rate changes remain in place.
A committee member asked whether the extension was for three or five years; a presenter said the substitute language extends the sunset by five years, and committee staff referred to the JFS line for the precise new date. The motion to JFS was then moved, seconded and approved by roll call; votes were recorded and held open until noon.
Ending: HB6897 will proceed to the floor under the committee’s substitute language extending the flex-rating sunset.
