Hawaii: NAMIC Opposed Premium Change Notice Bill Survives Legislative Procedural Deadline

Key Takeaways:

• SB 2952, which NAMIC opposes, has passed third reading and now heads to the House for a hearing in the Commerce and Consumer Protection Committee.
• The bill would require insurers, beginning Jan. 1, 2027, to provide policyholders with detailed written notice of approved rate changes at least 60 days before they take effect.
• NAMIC continues to oppose the bill, arguing it imposes costly and impractical mandates and that requiring percentage premium change disclosures would be confusing and potentially misleading for consumers.

SB 2952, the premium change notice bill that NAMIC opposes, has passed third reading and is now off to the House for its single committee hearing before the Commerce and Consumer Protection Committee.

The proposed legislation states:

§431:14- Rate changes; notification to policyholders.

(a) Beginning January 1, 2027, insurers shall notify affected policyholders in writing of any rate changes approved by the commissioner under section 431:14-104.

(b) The notification shall include:

(1) A clear statement of the new rate and its effective date;

(2) The percentage increase or decrease in the rate compared to the prior period;

(3) A brief explanation of the reasons for the rate change, including relevant factors such as claims experience, inflation, or other actuarial considerations; and

(4) Information on how policyholders can contact the insurer or the Hawaii insurance division regarding questions or concerns about the rate change.

(c) The notification shall be sent at least sixty days before the effective date of the rate change.

NAMIC will continue to oppose SB 2952 as the bill would establish a number of expensive, impractical, and unworkable mandates that will provide little benefit to consumers.

NAMIC has also specifically raised questions about the value of providing customers with a percentage increase or decrease in their premium change, and noted that no other industry or consumer product in the marketplace is required to provide this confusing and potentially misleading information.