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Bill would streamline filings for experience-rated group disability insurance
Summary
Senate Bill 5141 would remove single-case filings for experience-rated group disability income insurers and permit rating and credibility formulas to be filed in rate manuals; the Office of the Insurance Commissioner and industry groups support the change as a regulatory simplification.
Senate Bill 5141, sponsored by Senator Mona Das Cortez, would change rate-filing requirements for experience-rated group disability income insurers by replacing single-case filings for each group with filings of rating and credibility formulas in the insurer’s rate manual.
Committee staff John Kim explained that group disability insurance provides income to workers unable to work because of illness or injury and that, under current practice, insurers submit single-case filings for each employer group. The bill would require insurers to include rating formulas and credibility formulas in their rate manuals and to offer sufficient detail so the Office of the Insurance Commissioner (OIC) could replicate rates based on a group’s experience and demographics.
Tyler Langford and Rory Payne Donovan from OIC testified in support, describing the bill as streamlining regulation while preserving OIC’s ability to review actuarial detail. John Mangan of the American Council of Life Insurers also testified in support, saying the change would let carriers offer competitive rates more quickly and reduce administrative burdens for employers and insurers.
Senator Cortez said the bill “streamlines the regulatory approval process” and removes unnecessary hurdles while keeping protections and OIC oversight. A fiscal note is available and OIC estimates no fiscal impact. The committee took public testimony and closed the hearing without a vote.
