Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance topic
No spam. Unsubscribe anytime.
Committee hears bill requiring insurers to file experience‑rating formulas for group disability plans
Summary
Senate Bill 5,141 would require experience‑rated group disability income insurers to include full experience-rating formulas, rating factors and credibility formulas in rate filings so the insurance commissioner can replicate group premiums. Sponsors and industry representatives said the change streamlines review and protects consumers.
Senate Bill 5,141 would require experience‑rated group disability income insurers to include their full experience‑rating formulas, all rating factors and credibility formulas in their rate manuals and filings so the Office of the Insurance Commissioner can replicate a group’s premium calculation. The bill is a companion to House Bill 1230 and contains no changes from the house version, staff said.
Megan Mulvihill, staff to the committee, told members the requirement responds to a March 2023 technical advisory by the insurance commissioner and is intended to provide sufficient detail to confirm whether a group is fully or partially credible and to allow replication of premium rates if the commissioner is given the group’s experience and demographics.
Senator Adrian Cortez, prime sponsor, said the bill removes a single‑case filing requirement that she described as an unnecessary hurdle for insurers and employers. “The change is really going to eliminate unnecessary hurdles for the insurers,” Cortez said, adding that lower administrative expenses would help control premiums and keep benefits affordable for employees.
Chris Tepp, representing the American Council of Life Insurers, urged the committee’s favorable consideration and said the bill would streamline underwriting while maintaining consumer protections. Tepp told the committee the language reflects collaboration with the commissioner’s office.
No committee questions were recorded during the hearing. The committee closed the public hearing on SB 5,141 and moved on to the next item on the agenda.
