SB 1353 Summary

• Requires insurers offering accident and health policies to file new premium rates with the Insurance Commissioner if their loss ratio falls below 85 percent.

• Mandates that all rate filings include a demonstration that premium rates are not excessive if anticipated loss ratios meet or exceed the 85 percent minimum standard.

• Defines "loss ratio" as the ratio of direct claims incurred to direct premiums earned for the same calendar year, expressed as a percentage.

• Increases the minimum loss ratio requirement for small employer health benefit plans from 60 percent to 85 percent of aggregate premiums that must be returned to policyholders as benefits.

• Becomes effective November 1, 2010.