Sunsets all insurance policy forms every five years. (8/1/12) (OR INCREASE SG EX See Note)
The implementation of SB 297 is expected to streamline the approval process for insurers and create a more dynamic regulatory environment within the state. By requiring the review of insurance policy forms every five years, the bill seeks to ensure that all forms remain relevant and that insurers can adapt to new market and regulatory conditions. Ultimately, this may foster a more transparent and efficient insurance marketplace, which can benefit consumers who rely on updated and accurate insurance products.
Senate Bill 297, introduced by Senator Peterson, aims to amend current regulations surrounding the approval of basic insurance policy forms by establishing a sunset provision. The bill stipulates that any approved insurance policy form will remain valid for a period of five years unless rescinded or extended by the commissioner of insurance. This change intends to create a systematic review process of insurance forms, ensuring that outdated or obsolete forms are periodically assessed and potentially removed from circulation.
The sentiment surrounding SB 297 appears generally supportive, particularly among insurance industry stakeholders who view it as a positive step towards regulatory modernization. Proponents argue that the five-year sunset provision will enhance oversight and reduce the clutter of outdated forms. However, there may be concerns from consumer advocacy groups regarding the potential for lapses in consumer protections during the transition periods, highlighting the need for careful implementation.
While SB 297 has garnered support, there are notable points of contention regarding the balance between regulatory efficiency and consumer protection. Opponents may argue that too frequent a review could complicate the regulatory landscape for insurers, particularly smaller firms that may struggle to adapt to ongoing changes. Additionally, questions surrounding the capacity of the commissioner of insurance to effectively manage these reviews could arise, as it may require increased resources and oversight to ensure that consumer interests remain safeguarded.