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Bill

A 7637

Relates to requiring actuarial certification of certain rate determinations made by the superintendent of financial services

2025 Regular Session Introduced by Steve Stern

Bill A 7637 requires actuarial certification for key insurance rate determinations, ensuring fair pricing and protecting consumers from unjustified rate hikes.

REFERRED TO INSURANCE
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Bill Summary · A 7637

Summary of Bill A 7637

Bill Information

  • Bill Number: A 7637
  • Title: Relates to requiring actuarial certification of certain rate determinations made by the superintendent of financial services
  • Status: Referred to Insurance
  • Introduced: April 04, 2025
  • Classification: Bill

Purpose and Intent

Bill A 7637 aims to enhance the oversight and accuracy of rate determinations made by the superintendent of financial services. By requiring actuarial certification for certain rates, the bill seeks to ensure that these rates are based on sound actuarial principles, thereby promoting transparency and accountability in the insurance industry.

Key Provisions

  • Actuarial Certification Requirement: The bill mandates that specific rate determinations made by the superintendent must be certified by a qualified actuary. This certification will confirm that the rates are actuarially sound and compliant with established standards.
  • Scope of Application: The requirement for actuarial certification will apply to rates that significantly impact policyholders and the financial stability of insurance providers.
  • Implementation Guidelines: The bill outlines the process for actuaries to certify rates, including the qualifications necessary to perform such certifications and the standards they must adhere to.

Affected Parties

  • Insurance Companies: Insurers will need to engage qualified actuaries to certify their rate determinations, potentially increasing operational costs but also enhancing the credibility of their pricing structures.
  • Policyholders: Consumers may benefit from more reliable and fair insurance rates, as the actuarial certification aims to prevent unjustified rate increases.
  • Regulatory Bodies: The superintendent of financial services will have enhanced authority and responsibility in overseeing the certification process, ensuring compliance with the new requirements.

Procedural Aspects

  • Current Status: As of April 04, 2025, the bill has been referred to the Insurance Committee for further consideration.
  • Related Legislation: This bill is related to several prior-session bills, including:
    • S 5928
    • A 9151
    • A 4192
    • S 5236 (companion bill)

Conclusion

Bill A 7637 represents a significant step towards improving the regulatory framework governing insurance rate determinations. By instituting a requirement for actuarial certification, the bill aims to bolster the integrity of the insurance market and protect consumers from potentially unfair pricing practices. As the bill progresses through the legislative process, its implications for the insurance industry and policyholders will become clearer.

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

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