October 22, 2014
State-By-State Summary
Summary: Each state regulates insurers' rates in different ways. Some require prior approval of rates, while others employ a file-and-use system. Under this type of system, an insurer may use its rates as soon as they are filed. Other states use a subsequent disapproval system with a deemer period. Under such a system, rates are automatically approved if they are not disapproved within a certain period of time (the deemer period). Still other states have open rating laws, with no control. Citations to the states' codes appear in parentheses below the state name.
Jurisdictions covered: Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming
|Alabama
(Ala. Code §§27-13-29, 27-13-30)
Rates must be filed before their effective date. If rates are not disapproved within thirty days after filing, they are deemed approved.
(Alaska Stat. Ann. §21.39.041)
Each filing has a waiting period of fifteen days, which may be extended by the director for another fifteen days. If the rates are not disapproved within this period, they are deemed approved.
(Ariz. Rev. Stat. Ann. §20-357)
A rate filing must be on file for a waiting period of thirty days prior to becoming effective. If requested by the insurer or the rating organization, the director may authorize a filing to become effective prior to the end of the waiting period.
(Ark. Code Ann. §§23-67-211, 23-67-213)
The commissioner may decide if a particular market is competitive or noncompetitive. If the market is competitive, rates must be filed twenty days prior to their effective date. However, if the commissioner determines that an insurer's rates require supervision, the insurer must file documentation for a rate change sixty days prior to the effective date. If not disapproved, the rates become effective at the end of sixty days or earlier if the commissioner so orders.
If the market is noncompetitive, rates must be filed at least sixty days prior to their effective date. If not disapproved within that sixty day period, the rates are deemed approved.
(Cal. Ins. Code §1861.05)
An application for a rate change is deemed approved sixty days after the commissioner gives public notice of the filing, except under the following circumstances:
1. A consumer requests a hearing within forty-five days of the public notice. If the commissioner does not grant the hearing, a written explanation of the denial must be issued.
2. The commissioner decides to hold a hearing.
3. The rate increase is more than seven percent for personal lines, or fifteen percent for commercial lines.
In all cases, a rate change is deemed approved 180 days after it is received by the commissioner unless it is disapproved by final order of the commissioner or extraordinary circumstances exist.
(Colo. Rev. Stat. Ann. §10-4-406)
Rate filings are put on file for public inspection for fifteen days. If they are not disapproved in that fifteen-day period, they are deemed approved.
(Con. Gen. Stat. Ann. §§38a-676, 38a-688)
An insurer must file commercial lines rates with the commissioner. Workers compensation or employers liability rates must be filed within thirty days prior to the effective date. The commissioner may extend the waiting period by thirty days. If the rates are not disapproved within the waiting period, they may be used.
For personal lines, the commissioner decides if the market is competitive or noncompetitive. If the market is competitive, then the insurer must file its rates (rating bureaus are not allowed) by the earlier of the effective date or by the date bills reflecting the new rates are sent to insureds. If the commissioner finds that the insurer's financial condition warrants supervision or that unfair rating practices are being used, rates must be filed thirty days prior to their effective date.
In a noncompetitive market, the insurer must wait thirty days before using new rates. The commissioner may extend that period by another thirty days.
In any line where a particular insurer's share of the market is less than .5 percent, a company may file another company's rates, with or without deviation.
(Del. Code Ann. tit. 18, §2504, 2506)
Rates must be filed thirty days prior to their effective date. The insurance commissioner has thirty days in which to disapprove a filing which may be extended up to ninety days after receipt of the filing.
(D.C. Code §31-2704)
All lines of insurance require prior approval of rates.
After an investigation of the rates, the commissioner shall, before ordering an adjustment, hold a hearing upon not less than ten days' written notice specifying the matters to be considered at the hearing, to every company and rating organization which filed the rates; provided, that the commissioner is not required to hold the hearing if he or she is advised by every such company and rating organization that they do not desire the hearing.
(Fla. Stat. Ann. §627.062)
If the filing is made at least ninety days before the proposed effective date and the filing is not implemented during the office's review of the filing and any proceeding and judicial review, then such filing shall be considered a “file and use” filing. In such case, the office shall finalize its review by issuance of a notice of intent to approve or a notice of intent to disapprove within ninety days after receipt of the filing. The rate is deemed approved if the office does not issue a notice of intent to approve or a notice of intent to disapprove within ninety days after receipt of the filing.
If the filing is not made in accordance with the above provisions, such filing must be made as soon as practicable (but no later than thirty days after the effective date), and shall be considered a “use and file” filing. An insurer making a “use and file” filing is potentially subject to an order by the office to return to policyholders portions of rates found to be excessive.
For all property insurance filings made or submitted after January 25, 2007, but before May 1, 2012, an insurer seeking a rate that is greater than the rate most recently approved by the office shall make a “file and use” filing.
(Ga. Code Ann. §33-9-21)
Rates must be filed forty-five days prior to their effective date. The commissioner may extend this period by another fifty-five days.
If the overall increase is ten percent or more within any twelve-month period, the Commissioner shall order an examination. The proposed rates may not be used until the examination is complete. The examination may be waived if the overall increase is less than twenty-five percent within a twelve-month period. The examination must be completed in ninety days, but the commissioner may extend that period for an additional sixty days.
(Haw. Rev. Stat. §431:14-104)
All rates must be filed for a waiting period of thirty days prior to their effective date. That period may be extended by the commissioner for fifteen days. If the rates are not disapproved, they are deemed approved.
(Idaho Code Ann. §§41-1402, 41-1440)
Idaho uses an open competition rating system unless the director believes there is noncompliance with rate standards. The director must notify a company of such noncompliance and require correction in no less than ten days.
(215 ILCS 5/457)
Illinois uses an open competition rating system for all lines except workers compensation. In that line, rates must be filed within thirty days of becoming effective. The director then has thirty days to disapprove.
(Ind. Code Ann. §27-1-22-4)
All rates must be filed and become effective on the date filed.
(Iowa Code Ann. §§515F.5, 515F.24)
Rates must be filed thirty days prior to their effective date. That period may be extended by the commissioner for one additional fifteen-day period. All forms of casualty insurance, except reinsurance, accident and health, inland marine, workers compensation, surplus lines, and insurance written by community or state mutual associations filed in a competitive market become effective when filed.
(Kan. Stat. Ann. §40-955)
Rates are deemed approved if not disapproved within thirty days of receipt by the commissioner. Personal Lines are required to be filed thirty days before the rates become effective.
(Ky. Rev. Stat. Ann. §304.13-051)
In a competitive market, rates must be filed no later than fifteen days after their first use. However, if the commissioner finds that the rates need closer supervision, due to the financial condition of the insurer; rates must be filed thirty days prior to their effective date.
In a noncompetitive market, rates must be filed thirty days prior to their effective date.
Any increase or decrease of more than twenty-five percent within a twelve month period is not effective until approved by the commissioner.
(La. Rev. Stat. Ann. §§22:1464, 22:1451)
Rates are deemed approved if not disapproved within forty-five days of filing.
(Me. Rev. Stat. tit. 24-A, §2304-A)
Rates must be filed thirty days prior to their effective date. The superintendent may suspend the effective date for up to sixty days.
(Md. Code Ann., Ins. §11-206)
Rates are deemed approved if not disapproved within thirty working days of filing. The waiting period may be extended once for an additional thirty working days.
(Mass. Gen. Laws Ann. ch. 175A, §6)
Rates must be filed fifteen days prior to their effective date. The waiting period may be extended by an additional thirty days.
(Mich. Comp. Laws Ann. §500.2408)
Rates must be filed fifteen days prior to their effective date. The waiting period may be extended by one additional period of fifteen days.
(Minn. Stat. Ann. §70A.06)
Rates must be filed by their effective date. If the change is twenty-five percent or more in a twelve-month period, the commissioner may hold a hearing regarding the rate increase.
(Miss. Code Ann. §83-2-7)
Rates must be filed thirty days prior to their effective date. The commissioner may issue a sixty-day delay order.
(Mo. Stat. Ann. §379.321)
Rates, except for commercial property and casualty insurance policies must be filed within ten days after their effective date. Any changes made to a filing in the first six months must be approved or disapproved by the commissioner within ten days.
Commercial property and casualty rates are filed for informational purposes only and are not reviewed or approved by the department of insurance. If an insurer renews a commercial property or casualty policy with a premium increase of twenty-five percent or more, a notice must be mailed or delivered by the insurer at least sixty days before the policy expiration date, thirty days for umbrella or excess policies.
(Mont. Code Ann. §33-16-203)
Montana has an open competition rating law. The only requirement is that rates be filed with the commissioner.
(Neb. Rev. St. §44-7508)
Rates are deemed approved if not disapproved within thirty days of filing. That period may be extended by the commissioner for another thirty days.
(Nev. Rev. Stat. Ann. §§686B.070, 686B.110)
Rates are deemed approved if not disapproved within sixty days after completion of the filing.
(N.H. Rev. Stat. Ann. §412:16)
In a competitive market, rates for personal lines must be filed thirty days prior to their effective date. In a competitive market commercial lines, except for those lines issued to large commercial policyholders, must be filed within thirty days of the effective date. In noncompetitive markets, there is a thirty-day waiting period, which the commissioner may extend up to thirty additional days.
(N.J. Stat. Ann. §17:29A-14)
Rates are subject to prior approval by the commissioner.
(N.M. Stat. Ann. §59A-17-9)
Rates to be used in a competitive market must be filed before use unless they are for commercial insurance other than workers compensation or medical professional liability insurance lines.
In noncompetitive markets, reverse competitive, and residual markets an insurer or advisory organization must file with the superintendent rates, supplementary rate information, and supporting information for noncompetitive, reverse competitive, and residual markets at least thirty days before their proposed effective dates. The superintendent may give notice within thirty days of receipt of the filing that the superintendent needs additional time, not to exceed thirty days from the date of such notice, to consider the filing. The filing becomes effective if not disapproved by the end of the waiting period or by the end of the extended waiting period.
(N.Y. Ins. Law §2305)
Prior approval of rates, rating plans, rating rules, and rate manuals by the superintendent are not required until after June 30, 2014 except as provided.
Rate filings for workers compensation insurance , required motor vehicle insurance, or surety bonds, joint underwriting, motor vehicle assigned risk insurance, insurance issued by the New York Property Insurance Underwriting Association , authorized risk sharing plans , title insurance , medical malpractice liability insurance , insurance issued by the Medical Malpractice Insurance Association , mortgage guaranty insurance , credit property insurance , gap insurance , and most private passenger automobile insurance must be filed with the superintendent. The rates will not become effective unless either the filing has been approved or thirty days have elapsed and the filing has not been disapproved. The superintendent may extend this period by an additional thirty days (and with further cause extend it another fifteen days).
(N.C. Gen. Stat. Ann. §§58-40-30; 58-40-45)
Rates may be used when filed. However, the commissioner has thirty business days after a hearing to issue an order rejecting a filing and ordering a refund.
(N.D. Cent. Code Ann. §26.1-25-04)
A filing with respect to a competitive market commercial risk rate filing, a private passenger automobile rate filing in which the average rate change is less than five percent, or a homeowner rate filing in which the average rate change is less than five percent is deemed to meet the filing requirements until such time as the commissioner reviews the filing and so long thereafter as the filing remains in effect. An insurer must file notice sixty days before implementing the rate change which the commissioner may extend by another fifteen days after giving written notice.
(Ohio Rev. Code Ann. §3935.04)
Ohio uses a file and use system with a thirty-day waiting period.
(Okla. Stat. Ann. tit. 36, §987)
In a noncompetitive market, every insurer shall file with the commissioner all rate information at least thirty days before the proposed effective date. The commissioner may request time, up to thirty days from the date of the notice, to consider the filing.
A filing is deemed to meet requirements and will become effective unless disapproved by the commissioner before the expiration of the waiting period or extension.
In a noncompetitive market, the filing is deemed to comply with the filing provisions unless the commissioner informs the insurer within ten days after receipt of the filings as to what information is required to complete the filing.
(Or. Rev. Stat. Ann. §§737.205, 737.207, 737.320)
Commercial liability, workers compensation, and title insurance rates are deemed approved if not disapproved within thirty days or sixty days if the Director decides to extend the waiting period. All other rates are effective when filed.
(40 Pa. Stat. Ann. §1184, 75 Pa. Cons. Stat. Ann. §§2001-2009)
Motor vehicle rates are deemed approved if not disapproved within sixty days. That period may be extended for an additional thirty days. However, an insurer may request a hearing by the commissioner within thirty days after disapproval. If in that hearing it is determined that the rates do not meet the standards, the commissioner may issue an order that they are no longer effective. However, such an order does not affect policies already in force.
Rates for all other lines are subject to a thirty-day waiting period, which may be extended for one additional thirty-day period.
(R.I. Gen. Laws Ann. §§27-6-8, 27-6-11)
Rates are deemed approved if not disapproved within thirty days. The waiting period may be extended by an additional thirty days.
(S.C. Code Ann. §38-73-960)
Rates are deemed approved if not disapproved within sixty days of being filed. The waiting period may be extended by sixty days.
(S.D. Codified Laws §58-24-10.2)
Rates are deemed approved if not disapproved within the thirty-day waiting period. The waiting period may be extended by thirty days.
(Tenn. Code Ann. §§56-5-305, 56-5-306)
For personal lines, rates are deemed approved if not disapproved within thirty days. The waiting period may be extended by thirty days.
Commercial lines rates (except workers compensation) must be filed within fifteen days after their effective date.
Workers compensation rates must be filed within fifteen days after their effective date.
(Tex. Ins. Code Ann. §2251.153)
Rates are deemed approved if not disapproved within the thirty-day waiting period. The waiting period may be extended by up to thirty days by the Commissioner.
(Utah Code Ann. §§31A-19a-203, 31A-19a-207, 31A-19a-405)
Rates for all lines (except workers compensation) must be filed within thirty days after their effective date. The commissioner may extend the waiting period for an additional thirty days.
For workers compensation, rates must be filed thirty days before the effective date.
(Vt. Stat. Ann. tit. 8, §§4687, 4688)
For workers compensation, rates are to be developed only by the designated advisory or service organization. They are then deemed approved if not disapproved within thirty working days. The waiting period may be extended for thirty working days.
If a competitive market (as defined by the commissioner) exists for a line of insurance, those rates must be filed no later than fifteen days after their effective date.
In a noncompetitive market, rates must be filed thirty working days prior to their effective date. That period may be extended one time for thirty working days. If the rates are not disapproved within that time, they are deemed approved.
(Va. Code Ann. §§38.2-1906, 38.2-1912)
Insurers must file their rates on or before their effective dates. For any line, subdivision or rating class that the Commission determines that competition is not a sufficient regulator; any proposed rate changes or adjustments must be submitted at least sixty days before they become effective. The waiting period may be extended for an additional thirty days.
(Wash. Rev. Code Ann. §§48.19.040, 48.19.060)
Rates are deemed approved if not disapproved within thirty days. That waiting period may be extended for fifteen days.
(W. Va. Code Ann. §33-20-4)
Rates must be filed sixty days before they become effective. Rates are deemed approved if not disapproved within sixty days.
(Wis. Stat. Ann. §§625.13, 625.22)
All rates must be filed within thirty days after becoming effective. The commissioner has thirty days to disapprove the new rates.
(Wyo. Stat. Ann. §§26-14-107, 26-14-108)
In a competitive market, insurers must maintain rate information and make it available to the commissioner upon request.
In a noncompetitive market, rates must be filed thirty days before their effective date. This waiting period may be extended thirty additional days. Rates are deemed approved if not disapproved within thirty days of filing. That period may be extended for up to an additional thirty days.
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