On Mar. 14, WAS INS proposed rule re premium increase notification.
WAS INS proposed rule to require insurers tell consumer why premium is going up.
Proposed rule creates more transparency for consumers and gives the insurers sufficient time to implement these new consumer protections in two phases.
Follows preproposal statement of inquiry that was filed in Feb. 2022, see #128254.
Proposal Overview
Applies to all property and casualty insurers in State that sell private passenger auto and homeowners coverage, including for manufactured homes, condos and renters.
From Jun. 1, 2024 - Jun. 1, 2027, when policy renews with premium increase, insurers must give policyholders who ask reasonable explanations using understandable terms.
Starting Jun. 1, 2027, insurers must provide written notice to policyholders who receive premium increases of 10% or more explaining primary factors behind increase.
Primary factors include vehicle location, driving record, miles driven, number of drivers, claims history, discounts, fees and surcharges, the driver’s age, credit history.
Additionally, education, gender, marital status, occupation, property age, and value.
Consultation
A public hearing on the proposed rule to take place at 9am on Apr. 25, 2023 via Zoom.
Written comments due by Apr. 28, 2023; intended rule adoption date of May 2, 2023.
