North Dakota: NAMIC Submits Testimony on Rate Modernization Bills

Rate Modernization proposals were heard in the Senate and House Industry Business and Labor Committees on Jan. 25. NAMIC submitted proponent testimony on Senate Bill 2296 (Wanzek) and House Bill 1308 (Keiser), a rate modernization proposal that, if adopted, would move the state away from prior approval.

Both bills include elements of model bills adopted by the National Conference of Insurance Legislators: the Property/Casualty Flex-Rating Regulatory Improvement Model Act and the Property/Casualty Insurance Modernization Act, respectively.

It is likely only one proposal will move forward. Therefore, NAMIC suggested that the Legislature find a compromise solution that will allow North Dakota insurance consumers to benefit from the hard work put into both proposals by Insurance Commissioner Jim Poolman, Senate Committee Chairman Klein, and House Committee Chairman Keiser.

Senate Bill 2296 was approved by the Senate committee and now proceeds to the Senate floor. NAMIC has suggested the bill be amended to increase the “flex-band,” currently at 5 percent, and to remove farm policies from the “noncompetitive market” section of the bill.

Direct questions to NAMIC State Affairs Manager Joe Thesing.

Posted: Tuesday, January 30, 2007 12:00:00 AM. Modified: Tuesday, January 30, 2007 1:32:06 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.