SB 71 Summary

• Requires health insurers whose loss ratio falls below 85% to file new premium rates with the Insurance Commissioner and demonstrate that rates are not excessive.

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

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

• Effective date: November 1, 2011.