Bill > S979

This bill aims to increase transparency and fairness in insurance practices by modifying how insurers can charge rates higher than those officially approved by the state, a practice known as a "consent to rate deviation." For residential property insurance, insurers must now provide policyholders with at least 60 days' notice before charging a higher rate, detailing the difference between the approved rate and their proposed premium, and explaining the specific reasons for the higher charge, along with ways the policyholder can mitigate those reasons. The bill also significantly expands the data that insurance companies must report to the Department of Insurance (DOI), including detailed information on policy numbers, applications, non-renewals, claims, premiums, deductibles, and even demographic data of policyholders and the location of insured properties, all to be made publicly available in an online database after personally identifiable information is removed. Crucially, the bill prohibits insurers from using credit scoring as a basis for terminating or increasing rates on existing noncommercial private passenger motor vehicle and residential property insurance policies, though it still allows credit scoring for rate discounts. Furthermore, the DOI is directed to study how to gradually reduce the overall use of consent to rate deviations, aiming to have no more than 20% of the insurance market utilize them by 2040, and to conduct a public awareness campaign about these deviations, with $50,000 appropriated for these initiatives.