An Act Concerning Driving Histories And Private Passenger Nonfleet Automobile Insurance Policies.
Impact
The enactment of HB 07170 is expected to significantly alter the landscape of automobile insurance in the state. By mandating that insurance companies disclose how driving histories affect policy costs, the bill seeks to empower consumers with information, enabling them to make more informed decisions about their insurance coverage. This legislation could lead to a more equitable assessment of risk by standardizing how driving records influence insurance pricing, potentially benefiting those with less-than-perfect driving histories.
Summary
House Bill 07170 is an act aimed at regulating the use of driving histories by insurance companies in determining rates for nonfleet automobile insurance policies. Specifically, the bill prohibits insurance companies from using an applicant's or insured's driving history as a factor in underwriting or rating such policies unless they disclose the impact of that driving history on the insurance cost. This regulation is set to take effect on October 1, 2019, and it targets transparency in the insurance process for consumers.
Sentiment
The general sentiment surrounding HB 07170 appears to be positive, particularly among consumer advocacy groups who view the bill as a step towards greater transparency and fairness in insurance practices. Supporters argue that this legislation addresses long-standing issues of opacity in how insurance rates are formulated, giving consumers the knowledge they need to avoid disproportionately high rates due to factors outside their control. However, insurance companies may express concern regarding the administrative burden this bill imposes on their underwriting processes.
Contention
One notable point of contention related to HB 07170 revolves around the balance between consumer protection and the operational realities of insurance underwriting. Insurance providers may argue that driving history is a valid metric for assessing risk and determining appropriate premiums, and they may be concerned that requiring disclosures could complicate their business models. The debate centers on whether the benefits of increased transparency outweigh potential challenges for insurers, setting the stage for discussions on the future practices of automobile insurance in the state.
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.