NAMIC: North Dakota Rate Reform Bill Would Be ‘of Great Benefit’

A bill to modernize North Dakota’s rate and rate filing standards “will be of great benefit to North Dakota insurance markets” and “would send a strong message to Congress that states can improve and modernize the state system of insurance regulation,” according to testimony by the National Association of Mutual Insurance Cos.

Central Region State Affairs Manager Joe Thesing submitted testimony to the House Industry, Business and Labor Committee, chaired by State Rep. George J. Keiser. Considered Tuesday, HB 1329 calls for the elimination of prior regulatory approval of rate and rate filing standards for fire, property, casualty and commercial lines of insurance.

The bill requires that after Aug. 1, 2007, assuming the commissioner has filed a report with the legislative council, insurers will be required to file all personal lines rate and supplementary rate information with the commissioner no later than 30 days after the effective date of the rate.

Rates need not be filed for commercial lines of insurance. The bill also grants authority to the commissioner to determine that a reasonable degree of competition does not exist within a market and provides authority to impose prior approval rate and rate filing standards on that market.

Thesing cited Illinois and South Carolina as examples where “insurance is an industry where less government control has been tested and found to be successful.”