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AN ACT
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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To amend, on an emergency basis, An Act To provide for regulation of certain insurance rates in
the District of Columbia, and for other purposes, to change the motor vehicle and
homeowner insurance rate filing standard from “file-and- use” to require prior approval
with a 90- day review period, to provide notice and an opportunity for a hearing before a
rate filing is determined to be excessive or unfairly discriminatory; and , beginning on
September 1, 2023, to require insurers to provide policyholders 60- day advance written
notice of any rate increase of 10% or more.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the “Motor Vehicle and Homeowner Insurance Prior Approval Rate Filing
Emergency Amendment Act of 2023” .
Sec. 2. An Act To provide for regulation of certain insurance rates in the District of
Columbia, and for other purposes, approved May 20, 1948 (62 Stat. 243; D.C. Official Code §
31-2701 et seq.), is amended follows:
(a) Section 3(f)(2) (D.C. Official Code § 31- 2703(f)(2)) is amended to read as follows:
“(2)(A)(i) Each final rate or premium charge proposed to be used by any motor
vehicle or homeowner insurer shall be filed with the Commissioner and shall be adequate, not
excessive, and not unfairly discriminatory. Before a motor vehicle or homeowner rate or
premium charge filing shall become effective, the Commissioner shall have the authority to
determine within 90 days after the filing date that a rate or premium charge is excessive if the
rate or premium charge is unreasonably high for the insurance provided and is not actuarially
justified based on commonly accepted actuarial principles.
“(ii) In determining whether a rate compl ies with the standards set forth in
sub-subparagraph (i) of this subparagraph, due consideration shall be given to past and
prospective loss experience within and outside the District, a reasonable margin for underwriting
profit and contingencies, dividends, savings, or unabsorbed premium deposits allowed or
returned by insurers to their policyholders or members or subscribers, past and prospective
expenses, both nationwide and in the District, and investment income earned or realized by
insurers both from their unearned premiums and from their loss reserve funds. ENROLLED ORIGINAL
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“(B)(i) If the Commissioner does not make a determination on a proposed
rate or premium charge within the 90- day review period, the rate or premium charge shall be
deemed approved.
“(ii) If the Commissioner determines, within the 9 0-day review
period, that a motor vehicle or homeowner rate or premium charge may be excessive or unfairly
discriminatory, the Commissioner shall provide the insurer with notice of the determination, the
reasons for the de termination, and an opportunity for a hearing.
“(iii) An insurer must request a hearing within 15 days after the
notice is provided to the insurer by the Commissioner.
“(iv)(I) The Commissioner shall hold a hearing within 60 days
after a written request is timely received from the insurer , and the Commissioner shall issue a
final order within 30 days after the close of the hearing record.
“(II) The cost of the hearing shall be borne by the insurer
requesting the rate increase.
“(v) If the Commissioner finds after a hearing that a rate or
premium charge is not in compliance with this paragraph , the Commissioner shall order that its
use be discontinued for any policy issued or renewed after a date specified in the order and the
order may prospectively provide for a rate premium charge adjustment of any policy then in
force.
“(C)(i) Beginning on September 1, 2023, if a final rate or premium charge
to be implemented by an insurer will increase the existing rate or premium charge of a
policyholder by 10% or more , the insurer shall provide the policyholder written notice of the
percentage and amount of the increase as it pertains to the individual policyholder at least 60
days, and not more than 90 days, before the increase will be applied to the policyholder’s
insurance policy.
“(ii) If the insurer is unable to provide written notice at least 60
days before the end of the current term of the policyholder’s policy, then the insurer must wait
until the end of the subsequent term of the policyholder’s policy to implement the rate or
premium increase.”.
(b) Section 4(c)(2)(A)(ii) (D.C. Official Code § 31 -2704(c)(2)(A)(ii)) is amended to read
as follows:
“(ii) The order is made after the prescribed investigation and
hearing and within 30 days after the filing of rates affected, except as otherwise permitted by
section 3(f)(2).” .
Sec. 3. Fiscal impact statement.
The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal
impact statement required by section 4a of the General Legislative Procedures Act of 1975,
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a).
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Sec. 4. Effective date.
This act shall take effect following approval by the Mayor (or in the event of a veto by
the Mayor, action by the Council to override the veto), and shall remain in effect for no longer
than 90 days, as provided for emergency acts of the Council of the District of Columbia in
section 412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87
Stat. 788; D.C. Official Code § 1- 204.12(a)).
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Chairman
Council of the District of Columbia
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Mayor
District of Columbia