PCI Puts Support Behind Neb. Personal Lines Rate and Form Modernization

October 27, 2004

Momentum is building for Nebraska to enact personal lines rate and form modernization in 2005, according to the Property Casualty Insurers Association of America (PCI).

During 2004 the state legislature did not have time to complete work on a bill that would have changed personal lines rate and form filing from prior approval to file and use. However, lawmakers did approve resolution, LR 343, that calls for a study of file and use rate regulation for property/casualty insurers. At a recent hearing on the issue Insurance Commissioner Tim Wagner testified in favor of establishing a file and use system.

“We are encouraged by the hearing that Nebraska lawmakers understand the positive benefits of personal lines modernization,” said Greg La Cost, PCI regional manager and senior counsel. “Over the past several years a solid foundation has been laid for this type of reform to be successful. Nebraska has a track record of success with commercial lines modernization. Now it is time to allow consumers of automobile and homeowners insurance to experience the same benefits.”

In 2000, Nebraska started the movement toward a more competitive regulatory system by replacing its prior approval system for commercial lines rates with a file and use approach. In 2003, lawmakers took another step forward by making commercial lines form filing system file and use.

“The hearing provided lawmakers an excellent opportunity to learn how Nebraska can further improve its insurance regulatory environment and create more competition in the marketplace. When the session begins we urge lawmakers to enact legislation that creates a more market-oriented approach to insurance regulation,” added La Cost.

Topics Legislation

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