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Committee adopts amendment, advances bill requiring clearer explanations of insurance premium increases
Summary
The House Committee on Commerce and Consumer Protection adopted a dash-1 amendment and advanced House Bill 2,563 to the House floor March 27; the measure requires insurers to provide clear, nontechnical explanations for premium increases on certain personal policies when consumers request them.
The House Committee on Commerce and Consumer Protection on March 27 adopted the dash-1 amendment to House Bill 2,563 and voted to advance the amended bill to the House floor with a due-pass recommendation.
DCBS policy manager Jesse O'Brien told the committee the dash-1 amendment narrows the bill to consumer-requested disclosures and removes an automatic-disclosure phase 2 that had been in the introduced version. "The disclosures would solely be at the request of the consumer, but they would be... more informative," O'Brien said, and the amendment directs the Department of Consumer and Business Services to adopt rules that establish when a factor significantly contributes to an increase and to make the request process consumer-friendly.
Vice Chair Taichi moved to adopt the dash-1 amendment; the motion was declared adopted with no formal objection recorded. Vice Chair Chi then moved to advance the bill to the floor with a due-pass recommendation and to rescind a subsequent referral to the Joint Committee on Ways and Means.
A roll-call vote followed. Recorded votes on HB 2,563 as amended: Representative Thompson ' Aye; Representative Umperg ' Aye; Representative Naran ' Aye; Representative Rushke ' No; Representative Walter ' Aye; Vice Chair Chi Chi ' Aye; Vice Chair Osborne ' No; Chair Sosa ' Aye. The motion passed and the bill will go to the House floor; Vice Chair Chi Chi volunteered to carry the bill.
The amended bill applies to specified personal insurance policies and requires insurers to provide a clear, understandable explanation (limited to the top factors) and to respond within 20 days to a request. The amendment sets the bill's operative date to Sept. 1, 2026, and directs DCBS to make rules on implementation and data reporting.
