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Rate Capping, Part 3 – Update

October 29, 2012

UPDATE: The Washington Office of the Insurance Commissioner (OIC) held a hearing on September 25, 2012, for comments on its proposed rate stability rules.  The only difference between these rules and the version proposed in April is the removal of the policyholder disclosure requirement by insurers.  Due to the continued concerns expressed by insurers that this requirement would be unduly burdensome even after a template notice was provided for insurers to use, the OIC decided to remove the disclosure rules altogether.

Three industry professionals testified at the rule making hearing and, according to the OIC, several more submitted written comments.  Those who testified all praised the OIC for listening to prior comments and making revisions to the rule, but still expressed concerns that the rate capping rules are unnecessary and prevent flexibility and competition.  The hearing concluded with the OIC thanking those who testified and announcing that a decision will be made on adopting the rule within a few days.

The rule was filed with the Code Reviser and adopted on October 29, 2012.  It will become effective on January 1, 2013.  All rate stability rules submitted to the Washington OIC on or after January 1, 2013, must comply with the new WAC 284-24-130.  To see the final rules as adopted, click here.

 

Article by: Jim Antush, Actuarial Services Consultant

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