Measure would ease raising of insurance rates

Monday, April 16, 2001 | 10:28 a.m.

CARSON CITY -- Insurance companies would be able to raise their rates by as much as 7 percent on auto and homeowners policies without prior approval of the state insurance commissioner, under a bill approved 15-5 by the Senate.

Sen. Randolph Townsend, R-Reno, said Senate Bill 4 would permit companies to adjust their rates either up or down quickly in a competitive market. The insurance commissioner would still have the ability to review the rate increase after it went into effect.

He said this could encourage more insurance companies to do business in Nevada and provide more competition. The more competition, the lower the rates, supporters of SB4 said.

Currently Insurance Commissioner Alice Molasky-Arman must approve rate increases before they can take effect.

Sen. Maggie Carlton, D-Las Vegas, said the bill deregulates insurance companies and pointed out problems other industries have had since deregulation. No consumer testified before the Senate Commerce and Labor Committee for the bill, she said.

Townsend said if the insurance commissioner determines the market is less competitive than under the current procedure, then the state would revert to the old system of prior approval.

Voting with Carlton against SB4 were Democrats Dina Titus and Valerie Wiener, both of Las Vegas, Joe Neal of North Las Vegas and Bernice Mathews of Reno.

The bill goes to the Assembly.