Relative to the regulation of forms and rates for property and casualty insurance.
Impact
The proposed changes to the rate standards allow the commissioner of the insurance department to permit insurers to use systems of schedule rating. This is aimed at ensuring uniform and impartial application in the determination of insurance rates, which can potentially lead to more standardized practices across insurers. By mandating that all insurers file their models related to rate formulation, the bill seeks to enhance transparency and accountability within the property and casualty insurance sector.
Summary
SB142 is an act that aims to update the regulation of forms and rates for property and casualty insurance in the state of New Hampshire. The bill includes technical corrections to the existing statute, RSA 412, focusing particularly on how insurers can file rates and the standards applied to those rates. This update is presented as a necessary request from the insurance department to ensure that the regulatory framework remains effective and relevant in addressing contemporary needs in the insurance market.
Contention
While SB142 seems to be a straightforward regulatory adjustment, some stakeholders may express concerns regarding the implications of the confidentiality clause included in the bill. The provision that proprietary underwriting rules and predictive models can remain confidential raises questions about transparency, especially as it pertains to how risks are assessed and rates are determined. Critics might argue that such confidentiality could hinder market competition and the ability of consumers to make informed choices.
(New Title) requiring the commissioner of the insurance department to prepare and publish a report regarding fortified home and commercial standards, and other mitigation and resiliency programs.