District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0150 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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	1	+	ENGROSSED ORIGINAL
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8		-	AN ACT
9		-
10		-	_________________
11		-
12		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13		-
14		-	______________________
15		-
16		-
17		-	To amend An Act to provide for regulation of certain insurance rates in the District of Columbia,
18		-	and for other purposes, to change the private passenger or non- commercial motor vehicle
19		-	and homeowner insurance rate filing standard from file and use to prior approval with a 90-day review period, to require notice and opportunity for a hearing before a rate filing
20		-	is determined to be excessive or unfairly discriminatory , and, beginning on September 1,
21		-	2023, to require an insurer to provide an insured written notice before renewal of a
22		-	policy.
23		-	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
24		-	act may be cited as the “Motor Vehicle and Homeowner Insurance Prior Approval Rate Filing
25		-	Amendment Act of 2023”.
26		-	Sec. 2. An Act To provide for regulation of certain insurance rates in the District of
27		-	Columbia, and for other purposes, approved May 20, 1948 (62 Stat. 243; D.C. Official Code §§
28		-	31-2701 et seq .), is amended follows:
29		-	(a) Section 3(f)(2) (D.C. Official Code § 31-2703(f)(2)) is amended to read as follows:
30		-	“(2)(A)(i) Every final rate or premium charge proposed to be used by any private
31		-	passenger or non-commercial motor vehicle insurer or homeowner insurer shall be filed with the
32		-	Commissioner and shall be adequate, not excessive, and not unfairly discriminatory. Before a
33		-	private passenger or non-commercial motor vehicle or homeowner rate filing shall become
34		-	effective, the Commissioner shall have the authority to determine within 90 days after the filing
35		-	date that a rate is excessive if the rate is unreasonably high for the insurance provided and is not
36		-	actuarially justified based on commonly accepted actuarial principles.
37		-	“(ii) In determining whether a rate complies with the standards
38		-	under this subsection, due consideration shall be given to past and prospective loss experience
39		-	within and outside the District, a reasonable margin for underwriting profit and contingencies,
40		-	dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their
41		-	policyholders or members or subscribers, past and prospective expenses, both nationwide and in
42		-	the District, and investment income earned or realized by insurers both from their unearned
43		-	premiums and from their loss reserve funds. ENROLLED ORIGINAL
	8	+	A BILL 1
	9	+	2
	10	+	25-150 3
	11	+	4
	12	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5
	13	+	6
	14	+	______________________ 7
	15	+	8
	16	+	9
	17	+	To amend An Act to provide for regulation of certain insurance rates in the District of Columbia, 10
	18	+	and for other purposes, to change the private passenger or non-commercial motor vehicle 11
	19	+	and homeowner insurance rate filing standard from file and use to prior approval with a 12
	20	+	90-day review period, to require notice and opportunity for a hearing before a rate filing 13
	21	+	is determined to be excessive or unfairly discriminatory, and, beginning on September 1, 14
	22	+	2023, to require an insurer to provide an insured written notice before renewal of a 15
	23	+	policy. 16
	24	+	17
	25	+	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 18
	26	+	act may be cited as the “Motor Vehicle and Homeowner Insurance Prior Approval Rate Filing 19
	27	+	Amendment Act of 2023”. 20
	28	+	Sec. 2. An Act To provide for regulation of certain insurance rates in the District of 21
	29	+	Columbia, and for other purposes, approved May 20, 1948 (62 Stat. 243; D.C. Official Code §§ 22
	30	+	31-2701 et seq.), is amended follows: 23
	31	+	(a) Section 3(f)(2) (D.C. Official Code § 31-2703(f)(2)) is amended to read as follows: 24
	32	+	“(2)(A)(i) Every final rate or premium charge proposed to be used by any private 25
	33	+	passenger or non-commercial motor vehicle insurer or homeowner insurer shall be filed with the 26
	34	+	Commissioner and shall be adequate, not excessive, and not unfairly discriminatory. Before a 27
	35	+	private passenger or non-commercial motor vehicle or homeowner rate filing shall become 28
	36	+	effective, the Commissioner shall have the authority to determine within 90 days after the filing 29 ENGROSSED ORIGINAL
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48	41		2
49	42
50		-	“(B)(i) If the Commissioner does not make a determination on a proposed
51		-	rate within the 90-day period, the rate shall be deemed approved.
52		-	“(ii) If the Commissioner determines, within the 90-day review
53		-	period, that a private passenger or non-commercial motor vehicle or homeowner rate may be
54		-	excessive or unfairly discriminatory, the Commissioner shall provide the insurer with notice of
55		-	the determination and the reasons for the determination and an opportunity for a hearing.
56		-	“(iii) A hearing must be requested by the insurer within 15 days
57		-	after the notice is provided to the insurer by the Commissioner. A hearing shall be held by the
58		-	Commissioner within 60 days after a written request is timely received from the insurer and the
59		-	Commissioner shall issue a final order within 30 days after the close of the hearing record.
60		-	“(iv) The cost of the hearing shall be borne by the insurer
61		-	requesting the rate increase.
62		-	“(C) Beginning on September 1, 2023, or such later date as determined by
63		-	the Commissioner, the private passenger or non-commercial motor vehicle insurer or homeowner
64		-	insurer shall provide the insured written notice at least 45 days, and not more than 90 days,
65		-	before renewal of the policy. If the insurer fails to provide written notice at least 45 days before
66		-	the end of the current term of the policyholder’s policy, the insurer shall wait until the end of the
67		-	subsequent term of the policyholder’s policy to implement the rate or premium increase.”.
68		-	(b) Section 4(c)(2)(A)(ii) (D.C. Official Code § 31-2704(c) (2)(A)(ii)) is amended to read
69		-	as follows:
70		-	“(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.
71		-	The Council adopts the fiscal impact statement in the committee report as the fiscal
72		-	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).
73		-	Sec. 4. Effective date.
74		-	This act shall take effect following approval by the Mayor (or in the event of veto by the
75		-	Mayor, action by the Council to override the veto), a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved ENROLLED ORIGINAL
	43	+	date that a rate is excessive if the rate is unreasonably high for the insurance provided and is not 30
	44	+	actuarially justified based on commonly accepted actuarial principles. 31
	45	+	“(ii) In determining whether a rate complies with the standards 32
	46	+	under this subsection, due consideration shall be given to past and prospective loss experience 33
	47	+	within and outside the District, a reasonable margin for underwriting profit and contingencies, 34
	48	+	dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their 35
	49	+	policyholders or members or subscribers, past and prospective expenses, both nationwide and in 36
	50	+	the District, and investment income earned or realized by insurers both from their unearned 37
	51	+	premiums and from their loss reserve funds. 38
	52	+	“(B)(i) If the Commissioner does not make a determination on a proposed 39
	53	+	rate within the 90-day period, the rate shall be deemed approved. 40
	54	+	“(ii) If the Commissioner determines, within the 90-day review 41
	55	+	period, that a private passenger or non-commercial motor vehicle or homeowner rate may be 42
	56	+	excessive or unfairly discriminatory, the Commissioner shall provide the insurer with notice of 43
	57	+	the determination and the reasons for the determination and an opportunity for a hearing. 44
	58	+	“(iii) A hearing must be requested by the insurer within 15 days 45
	59	+	after the notice is provided to the insurer by the Commissioner. A hearing shall be held by the 46
	60	+	Commissioner within 60 days after a written request is timely received from the insurer and the 47
	61	+	Commissioner shall issue a final order within 30 days after the close of the hearing record. 48 ENGROSSED ORIGINAL
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81	67
82		-	December 24, 1973 (87 Stat. 813; D.C. Code § 1- 206(c)(1)), and publication in the District of
83		-	Columbia Register.
84		-
85		-
86		-
87		-	______________________________
88		-	Chairman
89		-	Council of the District of Columbia
	68	+	“(iv) The cost of the hearing shall be borne by the insurer 49
	69	+	requesting the rate increase. 50
	70	+	“(C) Beginning on September 1, 2023, or such later date as determined by 51
	71	+	the Commissioner, the private passenger or non-commercial motor vehicle insurer or homeowner 52
	72	+	insurer shall provide the insured written notice at least 45 days, and not more than 90 days, 53
	73	+	before renewal of the policy. If the insurer fails to provide written notice at least 45 days before 54
	74	+	the end of the current term of the policyholder’s policy, the insurer shall wait until the end of the 55
	75	+	subsequent term of the policyholder’s policy to implement the rate or premium increase.”. 56
	76	+	(b) Section 4(c)(2)(A)(ii) (D.C. Official Code § 31-2704(c)(2)(A)(ii)) is amended to read 57
	77	+	as follows: 58
	78	+	“(ii) The order is made after the prescribed investigation and hearing and 59
	79	+	within 30 days after the filing of rates affected, except as otherwise permitted by § 3(f)(2) of the 60
	80	+	act.”. 61
	81	+	Sec. 3. Fiscal impact statement. 62
	82	+	The Council adopts the fiscal impact statement in the committee report as the fiscal 63
	83	+	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 64
	84	+	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 65
	85	+	Sec. 4. Effective date. 66 ENGROSSED ORIGINAL
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95		-	_________________________________
96		-	Mayor
97		-	District of Columbia
98		-
	92	+	This act shall take effect following approval by the Mayor (or in the event of veto by the 67
	93	+	Mayor, action by the Council to override the veto), a 30-day period of Congressional review as 68
	94	+	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved 69
	95	+	December 24, 1973 (87 Stat. 813; D.C. Code § 1-206(c)(1)), and publication in the District of 70
	96	+	Columbia Register. 71