Washington to Consider Changes to Homeowners and Auto Premium Rule

Washington Insurance Commissioner Mike Kreidler has suggested modifying the state’s premium change transparency rule, specifically for Phase 2. This change would shift the implementation from June 2027 to June 2029. Phase 1, which took effect in June, already requires insurers to disclose premium increase reasons upon consumer request. The rule applies to auto and homeowner insurance policies, and input was gathered from consumers and the industry before finalization.

Phase 1 Requirements

Currently in effect, Phase 1 mandates that insurance companies place a disclaimer on the first page or view of renewal notices or billing statements. This lets policyholders know they can request details about premium hikes. The notice must be in 12 – point bold font and include contact information. Insurers then have 20 days from a written request to provide a clear, concise written explanation for the increase.

Phase 2 Details

Starting June 1, 2029, under Phase 2, insurers must send a notice at least 20 days before renewing a policy with a 10% or more increase. Explanation requirements are more specific. Insurers must provide a clear reason, including primary factors like claims history, discounts, fees, surcharges, premium capping, base rate changes, and demographic factors for both auto and homeowner policies. For auto, additional factors include garaging location, driving record, etc. For homeowners, property age, location, and value are also relevant.

Related topics

• Spain Declares 3 – Day Mourning for over 90 Killed by Storms
• Aerospace Startup, NASA, USGS Team Up to Monitor Wildfires, Storms
• APAC Reinsurers Set for Growth Amid Sustained Demand