On May 24, 2024, the Washington State Office of the Insurance Commissioner (WOIC) issued a reminder to insurance companies of their obligation to let policyholders know why their premiums have gone up.
The new premium change transparency rule, which started on June 1, 2024, covers auto and homeowners insurance policies. It requires insurance companies to include a disclaimer on the first page or view of renewal notices or billing statements, informing the policyholder they can request more information about an increase in premium. Following the request from policyholders, the insurance company has 20 days to provide an explanation for the increase.
Starting June 1, 2027, insurance companies must send a notice at least 20 days before renewing a policy with a 10% or greater increase in premium. At this time, companies must be more specific with explanations and include the primary factors causing the increase.
Please see the reminder for more information.