Senate Study Bill 1132 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON DANDEKAR) A BILL FOR An Act relating to the disapproval of rate filings of certain 1 casualty insurers. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2609XC (3) 84 av/rj

S.F. _____ Section 1. Section 515F.6, subsections 2 and 3, Code 2011, 1 are amended to read as follows: 2 2. If, at any time after a rate has been approved, 3 the commissioner finds that the rate no longer meets the 4 requirements of this chapter , the commissioner may shall 5 order the discontinuance of use of the rate and shall order a 6 refund of the rate, to the extent the commissioner has found 7 the rate excessive, to any person who has paid the rate . 8 The An order of discontinuance or refund may be issued only 9 after a hearing with at least ten days’ prior notice for 10 all insurers affected by the order. The order must be in 11 writing and state the grounds for the order. The An order of 12 discontinuance shall state when, within a reasonable period 13 after the order is issued, the order of discontinuance shall 14 be effective. The order shall not affect a contract or policy 15 made or issued prior to the expiration of the period set forth 16 in the order. An order of refund shall state the period for 17 which the commissioner has found the rate to be excessive, the 18 methodology by which the refund shall be calculated, and the 19 date by which the refund shall be paid to any person who has 20 paid the rate. 21 3. An insured which who is aggrieved with respect to a 22 filing which is in effect may make written application to the 23 commissioner for a hearing on that filing. The application 24 shall specify the grounds to be relied upon by the applicant. 25 If the commissioner finds that the application is made in 26 good faith, that the applicant would be so aggrieved if the 27 applicant’s grounds are established, and that the grounds 28 otherwise justify holding a hearing, a hearing shall be held 29 within thirty days after receipt of the application, upon 30 not less than ten days’ written notice to the applicant and 31 to every insurer and advisory organization which made that 32 filing. In connection with the hearing, the applicant shall 33 have the right to serve requests for information upon any party 34 to the hearing, to call witnesses, to offer evidence including 35 -1- LSB 2609XC (3) 84 av/rj 1/ 2

S.F. _____ rebuttal evidence, to cross-examine any witness that another 1 party or the commissioner calls, and to present argument and 2 summation. 3 If, after hearing, the commissioner finds that the 4 filing does not meet the requirements of this chapter , the 5 commissioner shall issue an order specifying in what respects 6 the filing fails to meet the requirements of this chapter , and 7 stating when, within a reasonable period after the order is 8 issued, the filing shall no longer be in effect. If, after 9 hearing, the commissioner finds that the rate is excessive, 10 the commissioner shall issue an order stating the period for 11 which the commissioner has found the rate to be excessive, 12 the methodology by which the refund shall be calculated, and 13 the date by which the refund shall be paid to any person who 14 has paid the rate. Copies of the order shall be sent to the 15 applicant and to every insurer and advisory organization which 16 made that filing. The order shall not affect a contract or 17 policy made or issued prior to the expiration of the period set 18 forth in the order. 19 EXPLANATION 20 This bill relates to the disapproval of rate filings of 21 certain casualty insurers by the commissioner of insurance. 22 The bill amends Code section 515F.6 to require the 23 commissioner to order the discontinuance of use of a rate 24 when the commissioner finds that the rate no longer meets the 25 requirements of Code chapter 515 and to order a refund of the 26 rate, to the extent that it is excessive, to any person who has 27 paid the rate. The bill specifies the content for orders of 28 discontinuance and refund. 29 The bill also specifies what rights an aggrieved insured has 30 in connection with a hearing requested by the insured on a rate 31 filing and specifies the content for orders of discontinuance 32 and refund made by the commissioner upon finding that a rate 33 is excessive. 34 -2- LSB 2609XC (3) 84 av/rj 2/ 2