HB 5125 Summary

• Amends the Insurance Code of 1956 to require automobile insurers to file new premium rates by June 30, 2018, for policies effective between June 30, 2018 and July 1, 2019.

• Mandates that filed rates must reflect at least a 25% reduction per vehicle from rates in effect on October 1, 2017, accounting for expected savings from related legislative changes.

• Allows insurers to file rates with less than 25% reduction only if they provide detailed actuarial justification based on expected losses, inflation (per Consumer Price Index), or changes in insurance assessments.

• Grants the Insurance Director authority to disapprove rate filings that do not meet the 25% reduction requirement without adequate justification, with insurers having 15 days to submit revised filings.

• Prohibits insurers from issuing or renewing automobile insurance policies after June 30, 2018 unless their rates are approved under these requirements; approval is automatic if the Director does not disapprove within 30 days (extendable to 60 days).