S.B. 92
- *SB92*
SENATE BILL NO. 92–SENATOR BUCK
PREFILED JANUARY 13, 2025
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Referred to Committee on Commerce and Labor
SUMMARY—Authorizes a proposed increase or decrease in a rate
for certain kinds and lines of insurance to be
implemented pending approval or disapproval by the
Commissioner of Insurance. (BDR 57-93)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to insurance; authorizing an insurer to implement
a proposed increase or decrease in a rate for certain kinds
and lines of insurance while the proposal is pending
approval or disapproval by the Commissioner of
Insurance; setting forth certain requirements applicable in
the event that such a proposal is ultimately disapproved;
and providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Under existing law, with certain exceptions, insurers and certain rate service 1
organizations are required to file with the Commissioner of Insurance all rates and 2
proposed increases thereto, as well as the forms of policies to which the rates 3
apply, supplementary rate information and any changes or amendments to the 4
rates. Existing law requires that such a filing include a proposed effective date and 5
be filed not less than 30 days before that proposed effective date, except that 6
the insurer or rate service organization is authorized to request that the 7
Commissioner authorize an earlier effective date. (NRS 686B.070) Existing law 8
sets forth procedures by which the Commissioner is required to approve or 9
disapprove a proposed increase or decrease in a rate for any kind or line of 10
insurance other than certain health plans. Under existing law, the Commissioner is 11
required to approve or disapprove each proposal not later than 30 days after it is 12
determined by the Commissioner to be complete. Existing law sets forth procedures 13
to allow an insurer or rate service organization to request reconsideration of a 14
disapproved proposed increase or decrease and a hearing to be held on the matter. 15
(NRS 686B.110) 16
This bill revises those provisions to allow an insurer to implement a proposed 17
increase or decrease in certain rates while the process for the approval or 18
disapproval proceeds. Section 1 of this bill requires a filing for a proposed increase 19
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or decrease in a rate for any kind or line of insurance for which the filing of rates is 20
required, other than certain health plans, to be filed on or before the proposed 21
effective date included in the filing. Section 1 authorizes an insurer to implement 22
such a proposed increase or decrease while the proposal is pending approval or 23
disapproval by the Commissioner. 24
Section 3 of this bill provides that if the Commissioner disapproves such a 25
proposed increase or decrease and the insurer has implemented the proposed 26
increase or decrease, the Commissioner is required to issue a written order that 27
includes, among other things, the date on which the disapproved increased or 28
decreased rate must no longer be used for the issuance of new policies or contracts 29
or the renewal of existing policies or contracts. Section 3 requires that date to be 30
not less than 90 days after the written order is issued. Under section 3, the order 31
does not affect any policy or contract made before the effective date of the order, 32
except that the Commissioner is authorized to require that the premiums be 33
adjusted after the effective date of the order for those policies or contracts in effect 34
on the effective date of the order. 35
Under existing law, if a filing for a proposed increase in a rate is not 36
accompanied by certain information, the Commissioner is authorized to inform the 37
insurer and the filing is deemed to be made when the information is furnished. 38
(NRS 686B.100) Section 2 of this bill deems a filing for a proposed increase in a 39
rate for any kind or line of insurance, other than certain health plans, for the 40
purpose of implementing the proposed increase pending the approval or 41
disapproval of the Commissioner to be filed on the date on which it is filed with the 42
Commissioner, regardless of whether the filing is accompanied by such 43
information. Similarly, existing law provides that if the Commissioner determines 44
that a proposal to increase or decrease a rate is incomplete, the Commissioner must 45
notify the insurer or rate service organization of that determination and, if the 46
insurer does not provide the necessary documents or other information within 30 47
days after the receipt of that notice, the Commissioner is authorized to disapprove 48
the proposal. (NRS 686B.110) Section 3 provides that a determination that a 49
proposal to increase or decrease a rate for any kind or line of insurance, other than 50
certain health plans, is incomplete does not prohibit an insurer from implementing 51
the proposed increase or decrease pending approval or disapproval. 52
Sections 4 and 5 of this bill make conforming changes to refer to provisions 53
that have been renumbered by section 1. 54
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 686B.070 is hereby amended to read as 1
follows: 2
686B.070 1. Every authorized insurer and every rate service 3
organization licensed under NRS 686B.140 which has been 4
designated by any insurer for the filing of rates under subsection 2 5
of NRS 686B.090 shall file with the Commissioner all: 6
(a) Rates and proposed increases thereto; 7
(b) Forms of policies to which the rates apply; 8
(c) Supplementary rate information; and 9
(d) Changes and amendments thereof, 10
made by it for use in this state. 11
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2. [A] Except as otherwise provided in subsection 3, a filing 1
made pursuant to this section must include a proposed effective date 2
and must be filed not less than 30 days before that proposed 3
effective date, except that a filing for a proposed increase or 4
decrease in a rate for a health plan described in NRS 686B.112 5
may include a request that the Commissioner authorize an effective 6
date that is earlier than the proposed effective date. 7
3. A filing made pursuant to this section for a proposed 8
increase or decrease in a rate for any kind or line of insurance or 9
subdivision thereof, other than a health plan described in NRS 10
686B.112, must be filed on or before the proposed effective date 11
included in the filing. An insurer may implement the proposed 12
increase or decrease on the proposed effective date included in the 13
filing while the proposed increase or decrease is pending approval 14
or disapproval by the Commissioner pursuant to NRS 686B.110. 15
4. If an insurer makes a filing for a proposed increase in a rate 16
for insurance covering the liability of a practitioner licensed 17
pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of the 18
practitioner’s professional duty toward a patient, the insurer shall 19
not include in the filing any component that is directly or indirectly 20
related to the following: 21
(a) Capital losses, diminished cash flow from any dividends, 22
interest or other investment returns, or any other financial loss that 23
is materially outside of the claims experience of the professional 24
liability insurance industry, as determined by the Commissioner. 25
(b) Losses that are the result of any criminal or fraudulent 26
activities of a director, officer or employee of the insurer. 27
If the Commissioner determines that a filing includes any such 28
component, the Commissioner shall, pursuant to NRS 686B.110, 29
disapprove the proposed increase, in whole or in part, to the extent 30
that the proposed increase relies upon such a component. 31
[4.] 5. If an insurer makes a filing for a proposed increase in a 32
rate for a health benefit plan, as that term is defined in NRS 33
687B.470, the filing must include a unified rate review template, a 34
written description justifying the rate increase and any rate filing 35
documentation. 36
[5.] 6. As used in this section, “rate filing documentation,” 37
“unified rate review template” and “written description 38
justifying the rate increase” have the meanings ascribed in 45 C.F.R. 39
§ 154.215. 40
Sec. 2. NRS 686B.100 is hereby amended to read as follows: 41
686B.100 1. By rule, the Commissioner may require the 42
filing of supporting data as to any or all kinds or lines of insurance 43
or subdivisions thereof or classes of risks or combinations thereof as 44
the Commissioner deems necessary for the proper functioning of the 45
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process for monitoring and regulating rates. The supporting data 1
must include: 2
(a) The experience and judgment of the filer, and, to the extent it 3
wishes or the Commissioner requires, of other insurers or rate 4
service organizations; 5
(b) Its interpretation of any statistical data relied upon; 6
(c) Descriptions of the actuarial and statistical methods 7
employed in setting the rates; and 8
(d) Any other relevant matters required by the Commissioner. 9
2. [Whenever] Except as otherwise provided in this 10
subsection, whenever a filing of a proposed increase in a rate is not 11
accompanied by such information as the Commissioner has required 12
under subsection 1, the Commissioner may so inform the insurer 13
and the filing shall be deemed to be made when the information is 14
furnished. For the purposes of implementing a proposed increase 15
in a rate for any kind or line of insurance or subdivision thereof, 16
other than a health plan described in NRS 686B.112, pursuant to 17
subsection 3 of NRS 686B.070, the filing of such a proposed 18
increase shall be deemed to be made on the date on which it is 19
filed with the Commissioner, regardless of whether the filing is 20
accompanied by any information required by the Commissioner 21
pursuant to subsection 1. 22
Sec. 3. NRS 686B.110 is hereby amended to read as follows: 23
686B.110 1. Except as otherwise provided in NRS 686B.112, 24
the Commissioner shall consider each proposed increase or decrease 25
in the rate of any kind or line of insurance or subdivision thereof 26
filed with the Commissioner pursuant to subsection 1 of NRS 27
686B.070. If the Commissioner finds that a proposed increase will 28
result in a rate which is not in compliance with NRS 686B.050 or 29
subsection [3] 4 of NRS 686B.070, the Commissioner shall 30
disapprove the proposal. The Commissioner shall approve or 31
disapprove each proposal no later than 30 days after it is determined 32
by the Commissioner to be complete pursuant to subsection 6. If the 33
Commissioner fails to approve or disapprove the proposal within 34
that period, the proposal shall be deemed approved. 35
2. If the Commissioner disapproves a proposed increase or 36
decrease in any rate pursuant to subsection 1, the Commissioner 37
shall send a written notice of disapproval to the insurer or the rate 38
service organization that filed the proposal. The notice must set 39
forth the reasons the proposal is not in compliance with NRS 40
686B.050 or subsection [3] 4 of NRS 686B.070 and must be sent to 41
the insurer or the rate service organization not more than 30 days 42
after the Commissioner determines that the proposal is complete 43
pursuant to subsection 6. 44
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3. Upon receipt of a written notice of disapproval from the 1
Commissioner pursuant to subsection 2 or 6, the insurer or rate 2
service organization may request that the Commissioner reconsider 3
the proposed increase or decrease. The request for reconsideration 4
must be received by the Commissioner not more than 30 days after 5
the insurer or rate service organization receives the written notice of 6
disapproval from the Commissioner, except that if the insurer or rate 7
service organization requests, in writing, an extension of 30 8
additional days in which to request a reconsideration, the 9
Commissioner shall grant the extension. A request for 10
reconsideration submitted pursuant to this subsection may include, 11
without limitation, any documents or other information for review 12
by the Commissioner in reconsidering the proposal. The 13
Commissioner shall approve or disapprove the proposal upon 14
reconsideration not later than 30 days after receipt of the request for 15
reconsideration and shall notify the insurer or rate service 16
organization of his or her approval or disapproval. 17
4. Whenever an insurer has no legally effective rates as a result 18
of the Commissioner’s disapproval of rates or other act, the 19
Commissioner shall on request specify interim rates for the insurer 20
that are high enough to protect the interests of all parties and may 21
order that a specified portion of the premiums be placed in an 22
escrow account approved by the Commissioner. When new rates 23
become legally effective, the Commissioner shall order the 24
escrowed funds or any overcharge in the interim rates to be 25
distributed appropriately, except that refunds to policyholders that 26
are de minimis must not be required. 27
5. If the Commissioner disapproves a proposed rate pursuant to 28
subsection 1 or subsection 6 or upon reconsideration pursuant to 29
subsection 3 and an insurer requests a hearing to determine the 30
validity of the action of the Commissioner, the insurer has the 31
burden of showing compliance with the applicable standards for 32
rates established in NRS 686B.010 to 686B.1799, inclusive. Any 33
such hearing must be held: 34
(a) Within 30 days after the request for a hearing has been 35
submitted to the Commissioner; or 36
(b) Within a period agreed upon by the insurer and the 37
Commissioner. 38
If the hearing is not held within the period specified in paragraph 39
(a) or (b), or if the Commissioner fails to issue an order concerning 40
the proposed rate for which the hearing is held within 45 days after 41
the hearing, the proposed rate shall be deemed approved. 42
6. The Commissioner shall by regulation specify the 43
documents or any other information which must be included in a 44
proposal to increase or decrease a rate submitted to the 45
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Commissioner pursuant to subsection 1. Each such proposal shall be 1
deemed complete upon its filing with the Commissioner, unless the 2
Commissioner, within 15 business days after the proposal is filed 3
with the Commissioner, determines that the proposal is incomplete 4
because the proposal does not comply with the regulations adopted 5
by the Commissioner pursuant to this subsection. The 6
determination of the Commissioner that a proposal is incomplete 7
does not prohibit an insurer from implementing a proposed 8
increase or decrease in a rate pursuant to subsection 3 of NRS 9
686B.070. The Commissioner shall notify the insurer or rate service 10
organization if the Commissioner determines that the proposal is 11
incomplete. The notice must be sent within 15 business days after 12
the proposal is filed with the Commissioner and must set forth 13
the documents or other information that is required to complete the 14
proposal. The Commissioner may disapprove the proposal if the 15
insurer or rate service organization fails to provide the documents or 16
other information to the Commissioner within 30 days after 17
the insurer or rate service organization receives the notice that the 18
proposal is incomplete. If the Commissioner disapproves the 19
proposal pursuant to this subsection, the Commissioner shall notify 20
the insurer or rate service organization of that fact in writing. 21
7. If the Commissioner disapproves a proposed increase or 22
decrease in a rate pursuant to subsection 1 or 6, upon 23
reconsideration pursuant to subsection 3 or after a hearing 24
conducted pursuant to subsection 5 and the insurer has 25
implemented the proposed increase or decrease pending approval 26
or disapproval by the Commissioner pursuant to subsection 3 of 27
NRS 686B.070, the Commissioner shall issue a written order that 28
includes, without limitation, the specific reasons for the 29
disapproval, with citations to relevant statutes, and the date on 30
which the disapproved increased or decreased rate must no longer 31
be used for the issuance of new policies or contracts or the 32
renewal of existing policies or contracts. The date established by 33
the Commissioner must be not less than 90 days after the written 34
order is issued. Except as otherwise provided in this subsection, 35
the order does not affect any policy or contract made before the 36
effective date of the order. The Commissioner may require that the 37
premiums be adjusted after the effective date of the order for those 38
policies or contracts in effect on the effective date of the order. 39
Sec. 4. NRS 686B.112 is hereby amended to read as follows: 40
686B.112 1. The Commissioner shall perform an actuarial 41
review of and consider each rate filing of a health plan issued 42
pursuant to the provisions of chapter 689A, 689B, 689C, 695B, 43
695C, 695D or 695F of NRS, including, without limitation, long-44
term care and Medicare supplement plans, filed with the 45
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Commissioner pursuant to subsection 1 of NRS 686B.070. If the 1
Commissioner finds that a proposed rate which is contained in a rate 2
filing will result in a rate which is not in compliance with NRS 3
686B.050 or subsection [3] 4 of NRS 686B.070, the Commissioner 4
shall disapprove the rate filing. The Commissioner shall approve or 5
disapprove each rate filing not later than 60 days after the rate filing 6
is determined by the Commissioner to be complete pursuant to 7
subsection 4. If the Commissioner fails to approve or disapprove the 8
rate filing within that period, the rate filing shall be deemed 9
approved. 10
2. Whenever an insurer has no legally effective rates as a result 11
of the Commissioner’s disapproval of rates or other act, the 12
Commissioner shall on request specify interim rates for the insurer 13
that are high enough to protect the interests of all parties and may 14
order that a specified portion of the premiums be placed in an 15
escrow account approved by the Commissioner. When new rates 16
become legally effective, the Commissioner shall order the 17
escrowed funds or any overcharge in the interim rates to be 18
distributed appropriately, except that refunds to policyholders that 19
are de minimis must not be required. 20
3. If the Commissioner disapproves a rate filing pursuant to 21
subsection 1, and an insurer requests a hearing to determine the 22
validity of the action of the Commissioner, the insurer has the 23
burden of showing compliance with the applicable standards for 24
rates established in NRS 686B.010 to 686B.1799, inclusive. Any 25
such hearing must be held: 26
(a) Within 30 days after the request for a hearing has been 27
submitted to the Commissioner; or 28
(b) Within a period agreed upon by the insurer and the 29
Commissioner. 30
If the hearing is not held within the period specified in paragraph 31
(a) or (b), or if the Commissioner fails to issue an order concerning 32
the rate filing for which the hearing is held within 45 days after the 33
hearing, the rate filing shall be deemed approved. 34
4. The Commissioner shall by regulation specify the 35
documents or any other information which must be included in a 36
rate filing submitted to the Commissioner pursuant to subsection 1. 37
Each such rate filing shall be deemed complete upon its filing with 38
the Commissioner, unless the Commissioner, within 15 business 39
days after the rate filing is filed with the Commissioner, determines 40
that the rate filing is incomplete because the rate filing does not 41
comply with the regulations adopted by the Commissioner pursuant 42
to this subsection. 43
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5. The Commissioner may assess against an insurer the actual 1
cost for the external actuarial review of a rate filing submitted 2
pursuant to subsection 1. 3
Sec. 5. NRS 686B.117 is hereby amended to read as follows: 4
686B.117 If a filing made with the Commissioner pursuant 5
to paragraph (a) of subsection 1 of NRS 686B.070 pertains to 6
insurance covering the liability of a practitioner licensed pursuant to 7
chapter 630, 631, 632 or 633 of NRS for a breach of the 8
practitioner’s professional duty toward a patient, any interested 9
person, and any association of persons or organization whose 10
members may be affected, may intervene as a matter of right in any 11
hearing or other proceeding conducted to determine whether the 12
applicable rate or proposed increase thereto: 13
1. Complies with the standards set forth in NRS 686B.050 and 14
subsection [3] 4 of NRS 686B.070. 15
2. Should be approved or disapproved. 16
Sec. 6. This act becomes effective on July 1, 2025. 17
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