Enrolled Bill Summary

House Bill 2284 amends the Insurance Code to impose a shorter timetable for notification of premium increases when premiums are withdrawn automatically from an escrow account. The statute currently requires insurers to notify customers, whose premiums are paid through an automatic fund transfer from a traditional bank account, of a premium increase at least 30 days before the effective date of the increase, and allows the customer until five days before the effective date to object to the increase. Funds drawn on an escrow account, however, are subject to 60-day and 30-day requirements for notification of and objection to a premium increase. The act makes all premium increases subject to the shorter time frames, regardless of the type of account from which the funds are withdrawn.