Tasked with protecting consumers from “excessive, inadequate, and unfairly discriminatory insurance rates” while ensuring the marketplace is accessible and competitive, the insurance commission’s review process includes examining applications and moving the process forward as quickly as possible within a 60-day timeline, according to rules established by Proposition 103—passed by voters in 1988. Reviews have extended beyond Prop 103’s timeline in recent years, according to Lara, in part due to incomplete applications from insurers, duplicative requests from those challenging rate hikes, and the complexity of the process, according to the press release. “I expect more from insurance companies in the form of complete rate filings,” Lara said in the press release while also calling on his department to follow the rules and fast-track reviews.
“I am holding everyone in the process accountable.” The new order creates a “data reconciliation tool” to organize information, which should expedite reviews and increase transparency, Lara wrote in the memo. “Reducing unnecessary delays is critical to getting our state’s insurance marketplace back on track,” Lara said in the press release.
The insurance department is now expected to review applications for rate increases and either accept or reject them within 60 days of filing. If more information is needed, two 30-day extensions are permitted. The department is then ordered to provide those challenging the inc.