AB 791

Currently, insurers must file premium rates, and changes to premium rates, for

all types of insurance with the Office of the Commissioner of Insurance within 30

days after the rates or rate changes become effective. Current law prohibits

premium rates from being excessive, inadequate, or unfairly discriminatory and

provides guidelines for determining whether rates comply with those standards. The

commissioner of insurance may order that a rate be discontinued for any policy

issued or renewed after a date specified in the order if, after a hearing, the

commissioner determines that the rate does not comply with those standards.

This bill requires that an insurer that writes health insurance must file with

OCI premium rates, and changes to premium rates, for health insurance before those

rates or changes to rates become effective. If a proposed rate is an increase of 10

percent or more, an insurer may not use the rate unless it is approved by the

commissioner. For any other rates or rate changes, unless the commissioner holds

a hearing on a rate or change to a rate, the rate or changed rate is approved if the

commissioner does not disapprove the rate within 30 days after it was filed with OCI.