Four months after a new law gave insurance companies more freedom to raise their rates, insurance lobbyists were back before a House panel asking for even looser regulatory restraints.
According to the Associated Press, regulation pushed by the American Insurance Association would allow companies providing business insurance to file a notice of a rate increase with the Department of Insurance’s Office of Property and Casualty. Forty-five days later the rate would take effect, unless the office took some action to block it.
The bill by Rep. Karen Carter would further erode the power of the state Insurance Rating Commission, which currently must review and approve insurance rate changes of ten percent or more before they take effect.
Under Carter’s bill heard today in the House Insurance Committee, which she chairs, the IRC would be an appellate body the companies could go to if the department blocks their rate changes.
Legislation passed last year enables insurance companies to raise or lower rates by up to ten percent without awaiting IRC approval.
The committee put off until next week a final decision on whether to advance the bill.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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