Nevada Insurance Commissioner Alice Molasky-Arman has denied the request of Farmers Insurance Company for an average increase of 2.8 percent for private passenger automobile insurance.
Molasky-Arman denied the request, because of her concern that the proposed premium modifications differed too greatly between classes.
Molasky-Arman also denied the request by Mid-Century Insurance Company for proposed changes which off-set to an overall statewide result of close to no change in rates. Based on the actuarial formula and profitability analysis, Molasky-Arman determined that Mid-Century’s rates could be reduced and still remain adequate. She directed her staff to pursue a rate decrease request from Mid-Century.
Farmers and Mid-Century can request reconsideration of the decision by requesting a hearing, or they can submit new rate filing requests.
Farmers Group is one of the three largest insurer groups, insuring almost 200,000 Nevada vehicles. Exchange is the second largest individual insurer with about 182,000 vehicles. The last rate change for these insurers was effective Nov. 1, 2002 and included a state-wide increase of about 1.5 percent for Exchange and a state-wide average of no change for Mid-Century.
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