Washington House Bill HB1230

Washington 2025-2026 Regular Session

• Introduced: 1/13/25
• Refer: 1/13/25
• Report Pass: 2/5/25
• Refer: 2/10/25
• Engrossed: 3/6/25
• Refer: 3/10/25

Caption

Requiring that experience-rated group disability income insurers include all applicable rating factors and credibility formulas in rate manual filings with the insurance commissioner.

Impact

If enacted, HB1230 will have a notable impact on how disability income insurers operate in the state. Insurers will be compelled to provide greater detail in their rate-making processes, which could lead to enhanced oversight by the insurance commissioner. This regulation is expected to mitigate potential abuses in rate setting by making it harder for insurers to use obscure or unverified rating factors. As a result, policyholders may experience more consistent and fair pricing for disability insurance, which can profoundly affect individuals relying on these policies for financial stability during periods of disability.

Summary

House Bill 1230 aims to enhance regulatory transparency and accountability among experience-rated group disability income insurers. This bill mandates that insurers include all relevant rating factors and credibility formulas when submitting their rate manuals to the insurance commissioner. The intention behind this legislation is to ensure that proposed rates are justified and well-documented, ultimately benefiting policyholders by fostering a more competitive insurance market. By requiring detailed filings, the bill seeks to promote fair pricing practices in the industry.

Contention

While the bill appears to have strong consumer protection intentions, it may face opposition from insurance companies. Critics may argue that the additional regulatory requirements could lead to increased operational costs for insurers, which might subsequently be passed on to consumers in the form of higher premiums. The discussion around HB1230 will likely include concerns regarding the balance between increased regulation for consumer protection and the need for insurers to maintain flexible business practices. Stakeholders will have to weigh the benefits of regulatory transparency against potential drawbacks for insurance providers.