ENGROSSED ORIGINAL
1
1
A BILL 2
3
25-148 4
5
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 6
7
____________________ 8
9
10
To amend, on a temporary basis, An Act to provide for regulation of certain insurance rates in 11
the District of Columbia, and for other purposes, to change the motor vehicle and 12
homeowner insurance rate filing standard from file and use to prior approval with a 90-13
day deemer, to require notice and opportunity for a hearing before a rate filing is 14
determined to be excessive or unfairly discriminatory; and to require insurers to provide 15
policyholders 60 day advance written notice of any rate increase of 10% or more. 16
17
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, t hat this 18
Act may be cited as the “Motor Vehicle and Homeowner Insurance Prior Approval Rate Filing 19
Temporary Amendment Act of 2023” . 20
Sec. 2. An Act To provide for regulation of certain insurance rates in the District of 21
Columbia, and for other purposes, approved May 20, 1948 (62 Stat. 243; D.C. Official Code §§ 22
31-2701 et seq.), is amended follows: 23
(a) Section 3(f)(2) (D.C. Official Code § 31- 2703(f)(2)) is amended to read as follows: 24
“(2)(A) Each final rate or premium charge proposed to be used by any motor 25
vehicle or homeowner insurer shall be filed with the Commissioner and shall be adequate, not 26
excessive, and not unfairly discriminatory. Before a motor vehicle or homeowner rate or 27
premium charge filing shall become effective, the Commissioner shall have the authority to 28
determine, within 90 days after the filing date, that a rate or premium charge is excessive if the 29 ENGROSSED ORIGINAL
2
rate or premium charge is unreasonably high for the insurance provided and is not actuarially 30
justified based on commonly accepted actuarial principles. In determining whether a rate 31
complies with the standards set forth in the prior sentence , due consideration shall be given for 32
past and prospective loss experience within and outside the District, a reasonable margin for 33
underwriting profit and contingencies, dividends, savings, or unabsorbed premium deposits 34
allowed or returned by insurers to their policyholders or members or subscribers, past and 35
prospective expenses, both nationw ide and in the District, and investment income earned or 36
realized by insurers both from their unearned premiums and from their loss reserve funds. 37
“(B) If the Commissioner does not make a determination on a proposed 38
rate or premium charge within the 90- day period, the rate or premium charge shall be deemed 39
approved. If the Commissioner determines, within the 90- day period, that a motor vehicle or 40
homeowner rate or premium charge may be excessive or unfairly discriminatory, the 41
Commissioner shall provide the insurer with notice of the determination and the reasons therefor 42
and an opportunity for a hearing. A hearing must be requested by the insurer within 15 days after 43
the notice is provided to the insurer by the Commissioner. A hearing shall be held by the 44
Commissioner within 60 days after a written request is timely received from the insurer and the 45
Commissioner shall issue a final order within 30 days after the close of the hearing record. The 46
cost of the hearing shall be borne by the insurer requesting the rate increase. If the Commissioner 47
finds after a hearing that a rate or premium charge is not in compliance with this paragraph , the 48
Commissioner shall order that its use be discontinued for any policy issued or renewed after a 49 ENGROSSED ORIGINAL
3
date specified in the order and the order may prospectively provide for a rate premium charge 50
adjustment of any policy then in force. 51
“(C) If a final rate or premium Beginning on September 1, 2023, if a final 52
rate or premium charge to be implemented by an insurer will increase the existing rate or 53
premium charge of a policyholder by 10% or more, the insurer shall provide the policyholder 54
written notice of the percentage and amount of such increase as it pertains to the individual 55
policyholder at least 60 days, and not more than 90 days, before the increase will be applied to 56
the policyholder’s insurance policy. If the insurer is unable to provide written notice at least 60 57
days before the end of the current term of the policyholder’s policy, then the insurer must wait 58
until the end of the subsequent term of the policyholder’s policy to implement the rate or 59
premium increase.”. 60
(b) Section 4(c)(2)(A)(ii) (D.C. Official Code § 31 -2704(c)(2)(A)(ii)) is amended to read 61
as follows: 62
“(ii) The order is made after the prescribed investigation and 63
hearing and within 30 days after the filing of rates affected, except as otherwise permitted by § 64
3(f)(2) of the act.” 65
Sec. 3. Fiscal impact statement. 66
The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal 67
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 68
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a). 69
Sec. 4. Effective date. 70 ENGROSSED ORIGINAL
4
(a) This act shall take effect following approval by the Mayor (or in the event of veto 71
by the Mayor, action by the Council to override the veto), and a 30- day period of Congressional 72
review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved 73
December 24, 1973 (87 Stat. 813; D.C. Code § 1- 206(c)(1)), and publication in the District of 74
Columbia Register. 75
(b) This act shall expire after 225 days of its having taken effect
. 76