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Bill

A 2556

Provides that written notice of premium rate changes be given not less than sixty days prior to the effective date of such rate changes

2025 Regular Session Introduced by Joe DeStefano and 3 co-sponsors

Requires insurers to give policyholders 60 days' written notice before any premium rate change, boosting transparency and time to review options.

REFERRED TO INSURANCE
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WeVote Research Nonpartisan
Bill Summary · A 2556

Summary: Assembly Bill A 2556 — Notice of Premium Rate Changes

Overview

A 2556 would require that written notice of premium rate changes be provided to policyholders at least 60 days before the changes become effective. The bill is currently referred to the Insurance Committee.

  • Introduced: January 17, 2025
  • Status: Referred to Insurance (two entries on the same date)
  • Primary Sponsor: Stephen Hawley
  • Cosponsors: Chris Tague, Joe DeStefano, Jodi Giglio
  • Related/Companion Bills: Senate companion S 1623 (and multiple prior-session related Assembly bills such as A 1560, A 2918, A 5955, A 2018, A 3978, A 331, A 1247, A 7186)

What the bill would do

  • Establish a mandatory 60-day written notice period for any premium rate changes.
  • The notice is to be provided prior to the effective date of the rate change, giving policyholders time to respond or adjust.
  • The text provided does not specify the exact content requirements of the notice, delivery methods, or any exemptions; those details would be defined in the full bill language.

Who is affected

  • Policyholders (consumers and businesses) who hold insurance policies subject to premium rate changes.
  • Insurance carriers and providers that adjust premiums, as they would need to comply with the notice requirement.
  • State insurance regulator (e.g., Department of Insurance) would oversee enforcement and compliance, though specific enforcement provisions are not included in the summary provided.

Key provisions and potential impacts

  • Notice Timing: Requires written notice 60 days prior to the effective date of a rate change.
  • Transparency: Aims to improve consumer awareness and planning around premium changes.
  • Administrative Impact: Insurers may need to adjust systems to track rate-change dates and ensure timely delivery of notices.
  • Economic/Consumer Impact: Policyholders gain a predictable window to review options, potentially shop for alternative policies, or renegotiate coverage; insurers may face additional administrative requirements and potential delays in rate-change rollout depending on how notice and delivery are defined.

Procedural and timeline notes

  • The bill is in the early stage of the legislative process, having been introduced and referred to the Insurance committee as of January 17, 2025.
  • With a companion bill in the Senate (S 1623), there is cross-chamber interest in rate-change transparency.

Additional context

  • Related bills in prior sessions suggest ongoing consideration of consumer protections around premium changes.
  • Details such as who exactly must deliver notices, allowable methods, required contents, exemptions, penalties for noncompliance, and effective date would be clarified in the full text of the bill and any amendments during committee review.

Compiled from official sources — confirm details with the bill’s official record.

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