An Act Concerning Personal Risk Insurance Rate Filings.
Impact
The passage of HB 07002 impacts the regulatory framework governing personal risk insurance in the state. By modifying existing requirements, the bill enhances insurers' flexibility in rate management while ensuring that large rate fluctuations are restricted. This is intended to create a more stable insurance market, benefitting both insurers and policyholders by preventing sudden and substantial changes in insurance costs.
Summary
House Bill 07002, also known as Public Act No. 17-121, addresses personal risk insurance rate filings. The bill allows insurers to file rate increases or decreases, effective immediately upon filing, provided that the overall state-wide rate change does not exceed six percent, and any individual territory does not see an increase greater than fifteen percent. This provision aims to streamline the process for insurance companies, thereby minimizing delays in the implementation of new rates.
Sentiment
The sentiment surrounding the bill appears to be largely positive among insurers and proponents of regulatory reform. Supporters argue that the bill fosters a more dynamic and responsive insurance market, which can adjust rates according to market conditions without excessive bureaucratic delays. However, there may be concerns among consumer advocacy groups about the potential for rate increases that could affect affordability for some policyholders, although the bill's safeguards aim to mitigate such risks.
Contention
A notable point of contention is the balance between regulatory oversight and market flexibility. While supporters emphasize the need for a more streamlined process for rate adjustments, critics may argue that the bill could lead to less consumer protection and oversight. As insurers gain the ability to implement changes more readily, there is concern that this may lead to disparities in insurance pricing across different territories, potentially impacting lower-income areas disproportionately.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.