Topeka, Kan. — The Governor of Kansas, Kathleen Sebelius (D), signed into law a rate modernization bill (HB 2689) for personal lines of insurance. Proponents say the law’s centerpiece—flex band rating—will foster competition in both the homeowners and auto insurance markets and offer more choices for consumers.
Flex band rating systems have been used in states such as Louisiana and South Carolina to provide insurers with a more streamlined rating system. Flex band rating permits insurers to file rate increases or decreases of less than 12% with the actuarial staff of the Kansas Insurance Department (KID). KID still has the power of review and approval if the insurer’s rate is actuarially justified. Only actuarially justified rates may be approved. This allows smaller rate filings to be regulated through a streamlined actuarial administrative process.
Kansas Insurance Commissioner Sandy Praeger wrote a letter in support of this bill during the legislative session.
Source: American Insurance Association
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