“NAMIC has long-supported flex rating as an important element of regulatory modernization,” said John Murphy, NAMIC’s state affairs director for the Northeast region. “Repeal of flex rating would be a major step backward both from a regulatory efficiency standpoint and from the goal of having a modern, competitive marketplace.”
Under flex rating, the filing is presumed to comply with the rating law and may be implemented immediately instead of waiting for review and approval from the insurance department.
“Flex rating allows carriers to respond to market conditions in real time, thus encouraging competition and permitting the insurance department to redeploy its resources to other priorities,” Murphy said. “It’s important to note that consumer protections remain in place under flex rating as carriers still must be able to justify the rates, and the regulator still has oversight and enforcement authority. Only the process has been expedited.”
Public Affairs Director, State & Policy Affairs
Posted: Friday, April 04, 2014 11:15:59 AM. Modified: Thursday, April 10, 2014 2:45:54 PM.
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