HB 4651 Summary

• Requires the director to employ 14 qualified actuaries to review automobile insurer rate filings under chapters 21, 24, and 26, with emphasis on determining whether rates are excessive.

• Eliminates the requirement that a rate be held excessive only if a reasonable degree of competition does not exist; rates need only be unreasonably high for the insurance coverage provided to be considered excessive.

• Removes the exception allowing automobile insurers to use rates immediately upon filing; automobile insurance rates must now be filed and approved in accordance with sections 2406 and 2408 before use.

• Removes the competitive market requirement from the definition of excessive rates in section 2109, allowing the director to challenge rates based solely on whether they are unreasonably high relative to coverage provided.

• Grants the director authority to initiate contested cases regarding rate filings and establishes procedures for aggrieved persons to request hearings on filings that do not meet statutory requirements.