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.
Adds new sections under WAS INS 284-30A on trade practices, effective Jun. 1, 2024.
May 2024 WAS INS Premium Increase Transparency
On May 24, 2024, WAS INS reported premium change transparency rule starts Jun. 1.
Insurers will have to let their policyholders know why their premiums have gone up.
Must provide notification via disclaimer on first page or view of renewal notices/billing statements to let insureds know they can request details about premium increase.
Insurance companies must send a notice at least 20 days before renewing a policy with a 10% or more increase, including primary increase factors, starting Jun. 1, 2027.
Oct. 2024 WAS INS Implementation Delay Rule
On Oct. 31, 2024, WAS INS issued notice of possible rulemaking to delay the implementation date of phase two until 2029 of premium change transparency rule.
For WAS INS to collect additional data from insurers, consumers, and other interested parties on effectiveness of phase one of the rule, adopted in WAS INS 284-30A-050.
Additional amendments to phase two requirements considered for this rulemaking.
Comment for preproposal statement of inquiry began Nov. 1, close on Dec. 20, 2024.
On the same day, WAS INS Commissioner reported the consideration of changes to transparency rule to move timing of automatic inclusions from Jun. 2027 to Jun. 2029.
Phase 1, which went into effect in Jun. of 2024, requires insurance companies to disclose to policyholders why their premiums had gone up when asked by consumer.
