Insurers say a brand new regulation proposed by Washington state Insurance coverage Commissioner Mike Kreidler that requires them to elucidate premium will increase to their policyholders in language customers can perceive has the potential to delay charge filings.
Kreidler introduced the proposed rule this week, saying the highest criticism his workplace will get from customers is their auto or owners insurance coverage premium is rising however their insurance coverage firm has not defined why.
“In case your insurance coverage firm goes to extend your premium, you will have a proper to know why,” Kreidler mentioned in a press release. “That is fairly fundamental info you need to count on out of your insurance coverage firm, however we hear from a whole bunch of customers yearly who can’t get a straight reply on why they’re being charged extra.”
Mark Sektnan, APCIA vp, state authorities relations, mentioned the brand new laws would make filings extra sophisticated to overview.
“This regulation has the true potential to delay the approval of charge filings, which can delay the supply of insurance coverage merchandise to customers,” Sektnan mentioned in an emailed assertion. “We assist a constant strategy within the states versus a patchwork of various necessities. It is extremely tough for nationwide carriers to satisfy single state advanced disclosure necessities. This might restrict merchandise obtainable to Washington customers.”
The OIC held 5 conferences with events during the last 12 months concerning extra transparency on premium adjustments.
Our proposed rule would create extra transparency for customers and offers the insurers enough time to implement these new client protections in two phases, in line with Kreidler’s workplace.
The proposed rule applies to all property/casualty insurers in Washington that promote personal passenger auto and owners protection, together with protection for manufactured properties, condominiums and renters.
That rule would apply from June 1, 2024, to June 1, 2027. It states:
- When a coverage renews and the premium will increase, insurance coverage corporations should give policyholders who ask cheap explanations utilizing phrases they will perceive.
Beginning June 1, 2027:
- Insurers should present a written discover to policyholders who acquired a premium enhance of 10% or extra explaining the first components behind the rise. They need to additionally present this similar discover to any policyholder who asks.
A public listening to on the proposed is ready for April 25, 2023 through Zoom and within the Tumwater workplace.
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