This bill amends the Property and Casualty Insurance Rate and Form Act by introducing new provisions regarding the rating systems for homeowners' insurance. Specifically, it establishes that any rating system filed by an insurer for homeowners' insurance on or after July 1, 2026, cannot exceed a rate that is more than ten percent above the highest rate approved by the director in the previous twelve months. Additionally, the bill mandates that all rating systems must comply with this new limitation, ensuring that insurers adhere to these guidelines when filing their rates.

The bill also includes various amendments to existing sections of the law, such as clarifying the requirements for insurers when filing rating systems and the conditions under which the director may disapprove a filing. Notably, it deletes language that previously allowed for more flexible rate proposals, thereby tightening the regulations around premium levels to ensure they do not endanger the solvency of insurers. The bill is set to take effect immediately upon passage, reflecting the urgency of these changes in the insurance landscape.

Statutes affected:
Introduced: 44-7501, 44-7508