HOUSE BILL REPORT

HB 1322

BYRepresentatives Lux, Chandler, Nutley, Peery and Meyers; by request of Office of Insurance Commissioner

Revising insurance form and rate filing requirements.

House Committe on Financial Institutions & Insurance

Majority Report:  Do pass.  (12)

      Signed by Representatives Lux, Chair; Zellinsky, Vice Chair; Anderson, Betrozoff, Chandler, Dellwo, Dorn, Ferguson, P. King, Nutley, Silver and Winsley.

House Staff:John Conniff (786-7119)

AS PASSED HOUSE JANUARY 29, 1988

BACKGROUND:

Almost all insurance policy forms and property/casualty rates must be filed with the Insurance Commissioner for review before the policy form or rates may be used by an insurance company. The Commissioner has 15 days to review the policy forms and rates submitted. If the Commissioner does not disapprove the form or property rate within 15 days, the form or rate is deemed approved by the Commissioner. The Commissioner has 30 days to disapprove casualty insurance rates.

Although insurance companies are permitted to apply for deviations from property and casualty insurance rates filed with the Commissioner, insurers are not statutorily authorized to apply for deviations from forms filed with the Commissioner. Nevertheless, the Commissioner permits insurers to apply for deviations from forms filed with the Commissioner.

If the premium for an insurance policy can only be determined when the policy is terminated, the insurer must submit a statement of the basis and rates upon which the final premium will be determined to an examining bureau and to the insured upon request.

SUMMARY:

Provisions governing insurance rate and form filings are amended to permit the Insurance Commissioner 30 days to review all rate and form filings, to authorize deviations from forms filed with the Commissioner, to require certain policies to contain a statement of the basis and rate upon which a final premium will be calculated, and to provide uniformity in rate and form filing deviation procedures.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.