The Washington Office of the Insurance Commissioner (OIC) published a news release announcing it has adopted rules to delay the implementation of phase two of the premium change transparency rules until 2029.
The premium transparency rules were adopted in response to consumer complaints regarding increased premiums. Consumers were saying they can't get clear answers from their insurers as to why their premiums are increasing.
The rule requires that home and auto insurers operating in the state explain to policyholders why their premiums have increased. Phase 1 started June 1, 2024, and required insurers to include a disclaimer on the first page of renewal notices or billing statements informing policyholders that they can request more details about their premium increase.
Phase 2 starts was planned to start on June 1, 2027, but has been delayed until 2029. The delay is to allow the commissioner additional time to collect data from insurers, consumers, and other parties.
Phase 2 changes the requirement so that instead of needing policyholders to request information about their premium increase, that information would be included automatically. Insurers should send a notice at least 20 days before renewing a policy with more than a 10% increase in premium. A clear explanation and what factors caused the increase should be provided.
The news release can be found here.