Senate Bill No. 136, introduced by Senator Talbot, aims to enhance transparency in insurance rate filings by requiring insurers to submit a rate transparency report alongside their filings for residential property and private passenger automobile coverage. This report must be written in plain language to ensure consumer understanding and must include a detailed breakdown of various factors contributing to the total rate, such as costs associated with reinsurance, claims, defense containment, fees, commissions, and profit margins. Additionally, insurers are mandated to provide a personalized copy of this report to consumers with each offer of coverage and upon renewal, clearly indicating if the filing is preliminary and subject to modification.

The bill also empowers the commissioner of insurance to establish rules and regulations for the implementation and enforcement of these requirements. The provisions of this act are set to take effect on January 1, 2026. Overall, the legislation seeks to improve consumer awareness and understanding of insurance rates, thereby fostering greater accountability among insurers.