HB 5627 Summary

• Requires automobile insurance rates to be approved by the commissioner before use, while home insurance rates may be used upon filing without prior approval.

• Establishes "total return rating" methodology considering the insurer's total revenue and available assets including investment income, capital, surplus, and profits when evaluating automobile insurance rates.

• Mandates annual filing of detailed automobile insurance data by April 1, including personal protection insurance claims, third-party bodily injury claims, litigation costs, attorney fees, and verdicts, broken down by territory.

• Prohibits rate increases for automobile insurance unless commissioner determines the data justifies the increase and finds administrative expenses not excessive, with restrictions on using data from other insurance lines.

• Imposes civil penalties up to $500 per violation and $5,000 per willful violation for rate-making violations, and requires refunds with 12% annual interest if violations resulted in premium increases or benefit decreases.

• Requires group automobile insurance to be offered uniformly to all eligible persons in a group and prohibits discrimination among group members.