Request for Comment on UPDATED DRAFT Proposed New Regulation 5-2-XX - Rate Capping and Transition Plan Practices for Property and Casualty Insurance

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The Division is seeking comments on the following UPDATED draft proposed new regulation:

The purpose of this regulation is to address the filings of property and casualty insurers instituting any practice involving rate change limitations (caps, ceilings and/or floors) to existing policyholders.

The Division holds the position that rating practices that cap the amount of a rate change when renewal rates are calculated for existing policyholders, but charge the filed rates without any limitation to new policyholders, constitutes the use of unfairly discriminatory rates in violation of §§ 10-3-1104(1)(f)(II) and 10-4-403, C.R.S. As a result, the Division is proposing promulgating this regulation to address the filings of property and casualty insurers instituting any practice involving rate change limitations (caps, ceilings and/or floors) to existing policyholders.

This version of the draft regulation has been updated since it was last sent out for informal stakeholder comments.

The Division is requesting informal comments be submitted to DORA_INS_RulesandRecords@state.co.us no later than 5 PM, Nov. 6, 2020.

This draft proposed new regulation, as well as other draft regulations currently released for informal public comment, can be found on our page for Draft Regulations and Bulletins for Informal Comments

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