California Insurance Commissioner Lara Unveils Voluntary Comprehensiveness Review for Rate Filings
Sacramento, California: Insurance Commissioner Ricardo Lara has unveiled a new Comprehensiveness Review Regulation giving insurers a voluntary pre-filing review before they formally submit rate changes for personal and commercial lines. The regulation has been approved by California's Office of Administrative Law. Lara said the process is designed to make rate review more transparent and to show consumers the premium savings the department's review produces.
Under the regulation, for insurers that opt into the voluntary review, the California Department of Insurance will publish initial rate range indications, the issues it identifies in insurer submissions, and the projected premium savings attributable to its review. Insurers may also skip the review and file directly under the existing Proposition 103 process, and the intervenor process for consumer participation in rate proceedings remains in place.
The rule complements the department's Complete Rate Application Regulation. California is one of the largest insurance markets in the United States; homeowners and auto premiums have risen steadily in recent years and some insurers have pulled back from the state, keeping the transparency and speed of rate approvals a live public debate.
Source: GSM · USA (original Chinese edition)
Photo: 加州州议会大厦，位于萨克拉门托。The California State Capitol in Sacramento. Photo: Amadscientist, via Wikimedia Commons.
