Several bills aimed at making the insurance industry more transparent advanced in committees Wednesday.
Insurance Commissioner Tim Temple supports HB 345, which would require insurers to give customers a 60-day notice, instead of 30, before canceling or renewing their policy.
“ I think that's a good bill coupled with the bill that I'm supporting (SB136) that requires insurance companies to show what the premium breakdown is. So when you pay your premium, what percentage goes to taxes, what percentage goes to losses and loss reserves, what percentage goes to expenses, commissions, potential profit contingencies, all of that stuff,” said Temple.
SB 136 passed before the full Senate on Wednesday (38-0) and heads to the House Insurance Committee.
HB 345 advanced to the Full House with a 14-0 vote.
The Republican said there are a number of transparency-focused insurance reform bills this session that aim to give consumers a better understanding of what their premiums cover.
“We've got a lot of good transparency bills coming out this year to help the consumers understand, have a better understanding of how insurance operates in our state,” said Temple.
Temple also supports dedicated funding for the fortified roof program. He says properties with fortified roofs are more insurable.
“If your home's more insurable, that means more companies want a quote. And if more companies want to quote, then you're gonna get that competition and see that downward premium as well. So those bills were really good.”
Temple also supports HB 438, which would regulate insurance advertising, but testified it would have minimal impact on lowering rates.
“ It's a very, very small amount of money. It is still something, I'm not dismissing that,” Temple said. “Maybe it's good for people's sound bites for me to be very honest and transparent when I say, "don't expect this to be something that's gonna lower your rates dramatically.” The bill is scheduled to go before the full House today.
When asked how little he anticipated the impact on rates to be, Temple said, “What is 0.02% of your own homeowners or auto premium? It's not a lot. So. But it is something that people want.”
