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Bill

HB 1230

Requiring that experience-rated group disability income insurers include all applicable rating factors and credibility formulas in rate manual filings with the insurance commissioner.

2025-2026 Regular Session Introduced by David Hackney

Washington law requires group disability insurers to publicly file all rate factors and formulas with the state insurance commissioner for regulatory transparency.

House Rules "X" file.
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Bill Summary · HB 1230

Legislative bill overview

HB 1230 requires experience-rated group disability income insurers in Washington to disclose all applicable rating factors and credibility formulas in their rate manual filings submitted to the state insurance commissioner. This mandate increases transparency in how insurers calculate premiums for group disability policies based on employer claims experience.

Why is this important

Group disability insurance is a significant employee benefit affecting millions of workers' income protection. Greater transparency in rating formulas allows employers, brokers, and regulators to better understand premium calculations, potentially identify discriminatory practices, and make more informed purchasing decisions. It also enables regulatory oversight of actuarial practices used in disability insurance markets.

Potential points of contention

  • Competitive concerns: Insurers may argue that detailed disclosure of credibility formulas and proprietary rating methodologies reveals trade secrets that create competitive disadvantages against other carriers
  • Regulatory complexity: Insurance commissioners must have adequate expertise and resources to review and validate complex actuarial models, creating potential implementation challenges
  • Premium impacts: Increased regulatory scrutiny and standardization requirements could affect insurers' ability to price flexibly, potentially raising costs for some employer groups while lowering them for others

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

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