Bill > HB1230

This bill modifies 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 in their filings. The bill mandates that these filings be sufficiently detailed to allow the commissioner to understand and potentially replicate the premium rates for a specific group, based on the group's experience and demographic information. Experience-rated insurance means that the insurance premiums are calculated based on the actual claims history and characteristics of a specific group, rather than using standard industry-wide rates. Credibility formulas are statistical methods used to determine how much weight should be given to a group's specific claims history when setting rates, especially for smaller groups where limited data might make precise rate-setting more challenging. By requiring this level of detail, the bill aims to increase transparency and provide regulators with a more comprehensive understanding of how disability income insurance rates are calculated for different groups.

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https://app.leg.wa.gov/billsummary?BillNumber=1230&Year=2025&Initiative=false