Modifications to Washington Owners and Auto Premium Rule to Be Thought of

Washington Insurance coverage Commissioner Mike Kreidler has proposed modifying the state’s just lately adopted premium change transparency rule.

The proposal is restricted to Part 2 of the rule (the automated inclusion of causes for premium will increase in coverage renewals). It strikes the timing of that motion from June 2027 to June 2029.

Part 1, which went into impact in June, requires insurance coverage firms to speak in confidence to policyholders why their premiums had gone up when requested by the buyer.

The present premium change transparency rule covers auto and home-owner insurance coverage insurance policies. The Workplace of the Insurance coverage Commissioner held conferences to assemble enter from customers and the insurance coverage trade previous to finalizing the rule.

Part 1 (efficient now) mandates embody:

• Insurance coverage firms should embody a disclaimer on the primary web page or view of renewal notices or billing statements that lets the policyholder know they’ll request extra particulars about their premium enhance.
• The notices should be in 12-point daring font and should embody contact data.
• The insurance coverage firm then has 20 days from receiving a written request to ship a transparent, concise assertion in writing offering an inexpensive rationalization for the premium enhance.

Part 2:

• Beginning June 1, 2029, insurers should ship a discover a minimum of 20 days earlier than renewing a coverage with a ten% or extra enhance.
• The necessities for explanations get extra particular in Part 2: Insurance coverage firms should present a transparent rationalization and embody the first components that precipitated the rise.
• These components can embody claims historical past, reductions, charges and surcharges, premium capping, base charge adjustments, and demographic components — just like the policyholder’s age, credit score historical past, schooling, gender, marital standing and occupation.
• For auto insurance coverage, components may embody the car’s garaging location, driving document, miles pushed, the variety of drivers and the variety of autos on the coverage.
• For owners insurance coverage, components may embody the property’s age, location, and worth.

Subjects
Auto
Washington
Owners