An Act promoting insurance rate review transparency

194th Legislature (2025-2026) Introduced by Ryan Fattman and 1 co-sponsor

Requires the Insurance Commissioner to publish plain-language summaries of rate changes, set advance notice, and provide official public comment periods to boost transparency.

House concurred

Overview

Bill Number: SD 967

Title: An Act promoting insurance rate review transparency

Introduced: February 27, 2025

Sponsor: Sen. Ryan C. Fattman (with Sen. Bruce E. Tarr)

Status: House concurred (as of the latest available update)

Related: Similar matter previously filed as Senate No. 634 in 2023-2024

Purpose: To increase transparency in how insurance rate changes are reviewed and communicated to consumers by the Massachusetts insurance regulator.

Key Provisions

Amendment to existing law: Adds a new subsection (16) to Section 117C of Chapter 175, General Laws (as of the 2022 edition).

Core requirements for the Commissioner of Insurance:
1) Plain-language summaries for rate changes: The commissioner must provide summaries of proposed rate changes in clear, consumer-friendly language.
2) Advanced notice period: The commissioner must determine a time period for giving consumers advance notice before proposed rate changes take effect.
3) Official comment periods: The commissioner must establish official periods during which consumers can review and comment on proposed rate changes.

Overriding language: The subsection begins with “Notwithstanding any general or special law to the contrary,” signaling that these transparency requirements apply despite other laws that might regulate rate changes or notices.

Who/What is Affected

Consumers/Policyholders: They would receive plain-language summaries, have advance notice of rate changes, and be able to participate in official comment periods.

Insurance rate-filings and the Department of Insurance: The commissioner’s office would implement new communication and review procedures, potentially affecting filing timelines and regulatory processes.

Insurers: Filings for rate changes would need to align with enhanced disclosure and comment processes, which could influence how changes are drafted and presented.

Procedural and Timeline Aspects

Legislative path:

Referred to the Joint Committee on Financial Services on February 27, 2025.
House subsequently concurred on February 27, 2025 (indicating agreement with the Senate version in the current session).

Effective date: Not specified in the text provided. Implementation would depend on passage and regulatory rulemaking following enactment.

Next steps: If enacted, the commissioner would implement the plain-language summaries, advance-notice period, and official comment opportunities through regulatory guidance and any needed rulemaking.

Potential Impacts

Increased transparency and consumer engagement in insurance rate decisions.

Potentially longer or more structured rate-review timelines due to comment periods.

Greater clarity for consumers about how rate changes are determined and what will happen next.

Administrative considerations for the Department of Insurance to develop and publish summaries and manage comment periods.

Note: This summary reflects the bill text and status as provided. For enacted language, official summaries, and any regulatory rules, see the Massachusetts Legislature’s published materials and the Department of Insurance once guidance is issued.

Bill