Bill > S09281

This bill requires insurers to obtain prior approval from the superintendent of insurance before implementing new rates for commercial property insurance, commercial general liability insurance, and personal residential property insurance, meaning insurers must submit their proposed rates and wait for approval before they can take effect. Additionally, for certain types of policies, insurers must provide a written explanation to policyholders detailing the reasons for any premium increases, including the primary rating factors and significant changes that led to the request. Furthermore, insurers that issue homeowners' insurance policies and have had consistently low actual loss ratios (meaning they paid out less in claims than expected) and high investment returns over the past two years will be required to refile their rates, and in certain circumstances, the superintendent will mandate a rate reduction. The superintendent will establish benchmarks for what constitutes a low loss ratio and a high investment return for homeowners' insurance within one year of the bill's enactment.