Under existing law, with certain exceptions, insurers and certain rate service organizations are required to file with the Commissioner of Insurance all rates and proposed increases thereto, as well as the forms of policies to which the rates apply, supplementary rate information and any changes or amendments to the rates. Existing law requires that such a filing include a proposed effective date and be filed not less than 30 days before that proposed effective date, except that the insurer or rate service organization is authorized to request that the Commissioner authorize an earlier effective date. (NRS 686B.070) Existing law sets forth procedures by which the Commissioner is required to approve or disapprove a proposed increase or decrease in a rate for any kind or line of insurance other than certain health plans. Under existing law, the Commissioner is required to approve or disapprove each proposal not later than 30 days after it is determined by the Commissioner to be complete. Existing law sets forth procedures to allow an insurer or rate service organization to request reconsideration of a disapproved proposed increase or decrease and a hearing to be held on the matter. (NRS 686B.110) This bill revises those provisions to allow an insurer to implement a proposed increase or decrease in certain rates while the process for the approval or disapproval proceeds. Section 1 of this bill requires a filing for a proposed increase or decrease in a rate for any kind or line of insurance for which the filing of rates is required, other than certain health plans, to be filed on or before the proposed effective date included in the filing. Section 1 authorizes an insurer to implement such a proposed increase or decrease while the proposal is pending approval or disapproval by the Commissioner. Section 3 of this bill provides that if the Commissioner disapproves such a proposed increase or decrease and the insurer has implemented the proposed increase or decrease, the Commissioner is required to issue a written order that includes, among other things, the date on which the disapproved increased or decreased rate must no longer be used for the issuance of new policies or contracts or the renewal of existing policies or contracts. Section 3 requires that date to be not less than 90 days after the written order is issued. Under section 3, the order does not affect any policy or contract made before the effective date of the order, except that the Commissioner is authorized to require that the premiums be adjusted after the effective date of the order for those policies or contracts in effect on the effective date of the order. Under existing law, if a filing for a proposed increase in a rate is not accompanied by certain information, the Commissioner is authorized to inform the insurer and the filing is deemed to be made when the information is furnished. (NRS 686B.100) Section 2 of this bill deems a filing for a proposed increase in a rate for any kind or line of insurance, other than certain health plans, for the purpose of implementing the proposed increase pending the approval or disapproval of the Commissioner to be filed on the date on which it is filed with the Commissioner, regardless of whether the filing is accompanied by such information. Similarly, existing law provides that if the Commissioner determines that a proposal to increase or decrease a rate is incomplete, the Commissioner must notify the insurer or rate service organization of that determination and, if the insurer does not provide the necessary documents or other information within 30 days after the receipt of that notice, the Commissioner is authorized to disapprove the proposal. (NRS 686B.110) Section 3 provides that a determination that a proposal to increase or decrease a rate for any kind or line of insurance, other than certain health plans, is incomplete does not prohibit an insurer from implementing the proposed increase or decrease pending approval or disapproval. Sections 4 and 5 of this bill make conforming changes to refer to provisions that have been renumbered by section 1.

Statutes affected:
As Introduced: 686B.070, 686B.100, 686B.110, 686B.112, 686B.117
BDR: 686B.070, 686B.100, 686B.110, 686B.112, 686B.117