Connecticut’s flex-rating law will continue for two more years, after Gov. M. Jodi Rell signed legislation extending the practice of letting insurers vary premiums without regulatory approval.
Flex-rating allows Connecticut personal lines insurers to adjust premiums up or down by six percentage points, without requiring approval from the state’s insurance department. Significant adjustments in price, however, must still receive approval.
Connecticut first implemented flex rating for personal lines insurance in 2006. It was due to expire this year.
Insurers say the practice allows them a greater ability to react to the market and helps to stabilize the insurance marketplace. Paul Magaril, regional manager and counsel for the Property Casualty Insurers Association of America, praised the move, saying “personal lines insurance markets are very competitive in Connecticut, due in part to the flex-rating law.”
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