Bill > SB5141

This bill amends existing insurance regulations to require experience-rated group disability income insurers to provide more comprehensive and transparent rate manual filings with the insurance commissioner. Specifically, insurers must now include detailed experience rating formulas, all applicable rating factors, and credibility formulas when submitting their rate manuals. The term "experience-rated" means that insurance premiums are adjusted based on the actual claims history of a specific group, and "credibility formulas" determine how much weight is given to a group's past claims experience when calculating future rates. The bill mandates that these filings must be sufficiently detailed to allow the commissioner to independently verify and replicate the premium rates for a group, given its specific experience and demographic information. This increased transparency is intended to provide regulators with a clearer understanding of how insurers calculate disability income insurance rates and to ensure that rate-setting practices are fair and comprehensible.