Report Title:
Insurance; rate reductions
Description:
Allows any property and casualty rate filing that when filed constitutes a reduction of not more than 10 percent below the rate in effect and approved by the Insurance Commissioner to become effective without prior approval.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2322 |
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TWENTY-THIRD LEGISLATURE, 2006 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO EXPEDITED INSURANCE RATE REDUCTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 431:14-104, Hawaii Revised Statutes, is amended by amending subsection (k) to read as follows:
"(k) The following rates shall become effective when filed:
(1) Specific inland marine rates on risks specially rated by a rating organization;
(2) Any special filing with respect to a surety or guaranty bond required by law or by court or executive order or by order or rule of a public body, not covered by a previous filing; [and]
(3) Any special filing with respect to any class of insurance, subdivision, or combination thereof which is subject to individual risk premium modification and has been agreed to by an insured under a formal or informal bid process[.]; and
(4) Any rate filing that when filed constitutes a reduction of not more than ten per cent below the rate in effect and approved by the commissioner; provided that the insurer may increase the rate up to the amount of the previously approved rate without the approval of the commissioner upon filing that increase with the commissioner.
The rates shall be deemed to meet the requirements of this article until the time the commissioner reviews the filing and so long as the filing remains in effect."
SECTION 2. Section 431:14-120, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Except as provided herein[,] and in section 431:14-104(k), each filing shall be on file for a waiting period of ninety days before the filing becomes effective. The period may be extended by the commissioner for an additional period not to exceed fifteen days if the commissioner gives written notice within the waiting period to the insurer, rating organization, or advisory organization that made the filing that the commissioner needs the additional time for the consideration of the filing. Upon the written application by the insurer, rating organization, or advisory organization, the commissioner may authorize a filing which the commissioner has reviewed to become effective before the expiration of the waiting period or any extension thereof. A filing shall be deemed to meet the requirements of this article unless disapproved by the commissioner within the waiting period or any extension thereof."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2006.
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INTRODUCED BY: |
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BY REQUEST |