NAMIC and other industry advocates succeeded last week in convincing the Kansas Department of Insurance to amend a draft bulletin on flex-rating, thus addressing industry concerns about the bulletin.
The redrafted bulletin is the result of a meeting with KDI, requested by NAMIC, which was held Nov. 30. The redrafted bulletin attempts to address KDI’s concerns about elements contained in certain rate filings, while at the same time preserving the flex-rating statute consistent with legislative intent.
Based on that meeting as well as conversations before the meeting with Deputy Director Bob Tomlinson, KDI agreed that rate filings, including base rate adjustments as well as other rating factors resulting in an overall statewide increase of 12 percent or less in the aggregate, complies with the flex-rating statute.
KDI personnel stated that where they have seen problems relate to rate filings that have included inappropriate elements such as changes to territorial boundaries; rate changes that discriminate against a certain class; or include other rating factors prohibited by various sections of the Kansas code.
NAMIC expressed concern regarding the original draft bulletin in October and worked with the department, industry advocates, and Sen. Ruth Teichman, sponsor of the flex-rating bill, in an effort to resolve differences regarding interpretation of the flex-rating statute.
Direct questions to NAMIC’s Assistant Vice President of State Affairs Joe Thesing.