Legislatures in most Southern states convene this week and dozens of insurance-related payments at the moment are within the hoppers. Right here’s a take a look at a number of the measures which have been filed, which might have an effect on property and casualty insurance coverage, householders’ premiums, staff’ compensation advantages and insurance coverage regulators and laws.
Alabama
House Bill 39, sponsored by Rep. Chip Brown and others, would switch cash left within the state Insurance coverage Division’s funds annually to what’s generally known as Strengthen Alabama Houses, a wind-mitigation program.
Underneath present legislation, any funds that exceed 25% of the quantity that was appropriated for that fiscal 12 months needs to be transferred to the state’s basic fund. The invoice would as an alternative ship that cash to the wind program and would authorize the insurance coverage commissioner to switch extra division funding if wanted. A lot of the funding for the Strengthen program already comes from charges paid by insurance coverage corporations and pays as much as $10,000 per house. After inspection, householders obtain reductions on premiums.
HB 67, sponsored by Rep. Matt Simpson, would make firefighters and legislation officers with post-traumatic stress dysfunction eligible for some advantages. Underneath present legislation, psychological problems should not compensable except accompanied by a bodily damage. The invoice would require municpalities to reimburse the responders for co-payments when they’re handled for PTSD.
When an officer is unable to return to work, native governments must pay incapacity funds equal to two-thirds of the responder’s wage.
Florida
With simply days to spare earlier than immediately’s bill-filing deadline, Sen. Jim Boyd has authored a bit of laws that many within the insurance coverage business have stated is required to fill holes left by SB 76, the 2021 reform invoice that aimed to cut back litigation prices.
SB 1728 goes the place some thought lawmakers wouldn’t dare to tread: a return to permitting precise money worth – as an alternative of full substitute worth – on residential roofs. Insurers have complained for years about present Florida legislation, which requires substitute of most roof surfaces, even when they’ve restricted harm.
“It’s invoice,” stated Paul Handerhan, president of FAIR, the Florida-based Federal Affiliation for Insurance coverage Reform.
The invoice additionally:
- Goals to restrict solicitation by roofing corporations. Insurance coverage carriers have cried “foul” over roofers soliciting householders with claims that insurers can pay the total quantity for a brand new roof, and the deductible will likely be coated, even when the harm is from put on and tear, not from wind. SB 76 tried to outlaw that apply however a decide has quickly blocked that language as infringing on roofers’ constitutional proper to free speech. Boyd’s SB 1728 presents new wording, noting that promoting is prohibited except it consists of, in giant kind, an announcement that the buyer is answerable for paying the deductible. The measure additionally notes that it is going to be thought of a felony offense if contractors provide to pay or rebate the insurance coverage deductible or if they supply deliberately false or deceptive statements to the home-owner.
- On Residents Property Insurance coverage Corp., Florida’s insurer of final resort that has grown by leaps and bounds on account of its decrease premiums on many properties, the invoice would bar some Citizen renewals if competing presents can be found. Present legislation permits householders to stay with Residents except premiums on “takeout” presents from different carriers are the identical or lower than the Residents value, for comparable protection. The invoice would dictate that Residents couldn’t renew a coverage “except the premium for protection from the licensed insurer is greater than 20 % larger than the renewal premium for comparable protection from the (Residents) company.”
- The measure additionally would require that Residents’ board members have at the very least 10 years of full-time expertise within the property and casualty insurance coverage enterprise, and the chief director must also have the identical “expertise, character and {qualifications}” as that required of most insurance coverage corporations’ CEOs. The change is one thing the Florida insurance coverage brokers and others within the business have lobbied for lately. “We strongly imagine they need to have that stage of expertise,” stated B.G. Murphy, director of presidency affairs for the Florida Affiliation of Insurance coverage Brokers.
- Boyd’s plan additionally would permit surplus traces to take part in Residents take-out applications and instantly write householders insurance policies, in the event that they accepted by state regulators, in the event that they preserve a surplus of $50 million or extra and meet different necessities.
A number of different payments had been filed in the previous couple of days that proponents imagine would assist stem the purple ink flowing by Florida’s property insurance coverage market. These embrace SB 1874, additionally by Boyd, which might make a variety of modifications requested by the state Division of Monetary Providers; SB 186, by Sen. Jeff Brandes, which might additionally permit surplus traces carriers to supply take-outs on Residents’ insurance policies, together with with different modifications designed to sluggish Residents’ progress; and HB 1307, by Rep. Tommy Gregory, which might handle a number of the similar points.
SB 468, sponsored by Sen. Keith Perry, handed the Senate Judiciary Committee Monday afternoon. It will make modifications to the Hurricane Disaster Fund; would exempt smaller companies from staff’ compensation premium audits; and would permit Residents to supply wind-only insurance policies for condominiums, amongst many different modifications.
Georgia
HB 867, by Rep. Mark Newton, would require pharmacy advantages managers to be licensed and controlled. It additionally would mandate that PBMs disclose the “true internet price” of pharmaceuticals and to calculate price sharing necessities for insureds.
HB 865, by Rep. Tom Kirby, would require employers who receive staff’ compensation protection for any worker by knowledgeable employer group to both have all of their staff coated by the PEO, or to acquire separate proof of protection on their staff, by a comp insurance coverage service.
Kentucky
HB 62, sponsored by Rep. Richard White, would mandate staff’ compensation advantages for workers that suffer hostile reactions from employer-mandated COVID-19 vaccinations. It creates a rebuttable presumption that an hostile response was attributable to the vaccine.
HB 166, by Rep. Ashley Laferty, would finish the controversial requirement that pulmonary specialist docs who consider black-lung illness even be radiology specialists, generally known as “B readers.” That requirement was added to the state’s staff’ comp statute in 2018 in what critics stated was an effort to make it tougher for coal miners to acquire diagnoses and staff’ compensation advantages.
HB 203, by Rep. Steve Sheldon, would require pharmacy advantages managers to ascertain satisfactory and accessible pharmacy networks.
HB 210, by Rep. Bart Rowland, would set up insurance coverage necessities for peer-to-peer car-sharing providers.
Mississippi
SB 2024, sponsored by Sen. Kevin Blackwell and others, would replace the regulatory framework for journey insurance coverage to be bought within the state.
HB 482 would reauthorize the Property Insurance coverage Readability Act, which requires insurers to offer coverage and premium info to the state Division of Insurance coverage. The invoice additionally would reauthorize the division to compile information on householders’ insurance coverage.
SB 2002, by Sen. Charles Youthful, is the Grain Producers Indemnity Act. It will present indemnification for grain sellers who expertise monetary failure, by a state company, and would supply for reinsurance to assist cowl claims.
HB 521, by Rep. John Lamar, would exempt some staff’ compensation claims info from public information legal guidelines. Some injured staff have complained for years that when they file a declare, they’re inundated with solicitations from plaintiffs’ attorneys and others. The state Employees’ Compensation Fee has requested the laws for the previous couple of years.
North Carolina
The Normal Meeting begins the second 12 months of its two-year, 2021-2022 session this week. No new P&C insurance-related measures had been filed as of Monday, however a number of payments stay pending from the primary half of the session.
Senate Bill 496, generally known as the “Omnibus Division of Insurance coverage Invoice,” by Sen. Todd Johnson, would make a variety of clarifications to state legislation, as requested by the division. Amongst these:
- The measure would make it clear that when a catastrophe declaration is made for components of the state, policyholders have additional time – till the declaration or different order is lifted – to file proof-of-loss statements and pay premiums. However as soon as that interval has expired, all premiums which can be owed must be paid, the invoice notes. Insurers would be capable to proceed with cancellations of insurance policies after the deferral interval.
- The invoice would require native college boards to offer the Insurance coverage Division with a replica of all property and flood insurance coverage insurance policies on college buildings and gear. When insurance policies are canceled or modified, the boards must notify the division.
- It additionally would bar companies with a revoked or suspended license in North Carolina from providing insurance coverage merchandise to North Carolina residents by one other state’s licensure.
- The invoice additionally would take away private supply as a supply possibility for sure DOI varieties.
The omnibus invoice handed the Senate final 12 months and is now within the Home Guidelines Committee after it was reported favorably by a subcommittee.
A invoice affecting captive insurance coverage corporations, SB 347, additionally by Johnson, handed the Senate final 12 months and now awaits motion within the Home. The measure would make a variety of modifications to captive legislation, together with:
- The invoice would require the insurance coverage commissioner to keep up the confidentiality of data filed by a captive insurance coverage firm when it seeks approval of a distribution of capital or surplus, a change to its plan of operation, or a mortgage to an affiliate.
- It additionally would authorize the commissioner, upon written request, to exempt any captive from compliance with audit necessities if such compliance would trigger it monetary or organizational hardship. Underneath present legislation solely captive insurance coverage corporations having lower than $1.2 million in written premium are eligible for this exemption.
- The transfer would supply {that a} captive insurance coverage firm shouldn’t be entitled to assert a gross premium tax exemption as an inactive captive insurance coverage firm except the Commissioner has declared the corporate to be inactive.
South Carolina
SB 902, by Sen. Gerald Malloy, would make hostile reactions from a COVID vaccination a compensable situation for individuals who obtained an employer-mandated shot.
H 4615, by Rep. Jeffrey Johnson, would require judges and the state’s Employees’ Compensation Fee to report all circumstances of suspected false statements or misrepresentations made in court docket proceedings to the insurance coverage fraud division of the state Lawyer Normal’s workplace.
Subjects
Legislation
Property
