House of Representatives

HB 2204

insurer rates; forms; review

Sponsors: Representative Carpenter

 

DP

Committee on Financial Institutions & Insurance

DP

Caucus and COW

DP

Third Read

 
DP

As Passed the House

x

As Transmitted to the Governor

 

HB 2204 revises statutory time frames for the review and approval of insurance rate and form filings to expedite introduction of insurance products to the market.  The bill also adopts a reasonable exemption standard for industrial insureds.

 

History

In an effort to streamline the process for review and approval of insurer rates and forms, the Arizona Department of Insurance adopted guidelines established by the National Association of Insurance Commissioners (NAIC) to make market introduction of insurance products more efficient and expeditious.  This "speed to market" initiative was developed to standardize          the processes for filing and reviewing rates and forms, introduce a review checklist, as well as implement an electronic rate filing system.  In addition to these initiatives, new time frames for review of the filed rates is recommended to give the department ample time to examine the filed rates and make a determination.  The proposed legislation would standardize the statutory time frame to be thirty days for disapproval of proposed rates.  The measure also provides an extension if the director needs additional time to complete the review.  In addition, the measure addresses the filing requirements for large corporations classified as "industrial insureds" and conforms to a more reasonable standard of administrative rates and form filing exemptions.

 

Provisions

·          Standardizes the time frame to thirty days for filed rates to be reviewed and approved by the Department of Insurance.  A filed rate is deemed approved upon the expiration of the review period unless the director issues a disapproval order.

·          Provides that the director may extend the waiting period for an additional fifteen days to complete the review.

·          Amends the current definition of "industrial insured" to conform to an administrative rate and form filing exemption for exempt commercial policyholders.  

·          Only companies with earnings in excess of $25 million and a minimum annual premium of $100,000 are eligible for form filing exemptions.  The legislation stipulates that such entities are required to have a risk manager on site. 

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·          45th Legislature                 

·          Second Regular Session      2          April 12, 2002

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