Missouri exempts some commercial lines from filing requirements
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On June 22, Mike Parson signed his first bills as Missouri governor, including S.B. 594, which exempts certain types of commercial insurance lines from filing requirements with respect to rates, rate plans, modifications and manuals.
Missouri thus became just the latest state to join a growing chorus taking such commercial lines regulatory modernization measures recently.
The Missouri bill, which applies to policies issued or renewed on or after Jan. 1, 2019, exempts many types of commercial lines from rate filing requirements and, for the first time in the state, adds a policy form filing exception for large commercial risks when the aggregate annual premium for a policyholder exceeds $100,000, according to information from the American Insurance Association, which has been actively supporting such legislation among the states.
“A competitive, open insurance marketplace is essential to the well-being of any state’s business community,” Steve Schneider, AIA’s vice president for state affairs, Midwest region, said in a statement Friday. “We applaud Governor Parson and Missouri’s legislators for recognizing its importance and look forward to seeing the bill swiftly implemented.”
Tennessee passed its own such modernization bill in May. New Hampshire’s commercial lines regulatory modernization bill, H.B. 1389, signed by Gov. John Sununu at the end of May, goes into effect July 24.
The New Hampshire legislation reduces the large commercial policyholder annual premium threshold to $25,000 from $50,000 and limits policy form filing requirements for 15 lines of business to submission for informational and auditing purposes only, according to the AIA.
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Tennessee updates commercial insurance form laws
Tennessee on Monday became the most recent state to modernize its law on commercial lines rate and policy forms in 2018 as Gov. Bill Haslam signed legislation — S.B. 1795/H.B. 1598 — exempting certain types of insurance from filing requirements of commercial risk insurers, the Property Casualty Insurers Association of America said in a statement Tuesday.
