In some respects, it is hard to believe we have already completed one full quarter of 2011. But when you consider the legislative proposals that have been enacted so far, and additional pending proposals, it's evident that the insurance industry is well on its way to a very active year.

Regarding enacted legislation, three states in particular stand out. The first is Arkansas, where commercial liability insurance has been in focus. The state's HB 1439 sought to address some concerns over whether damages caused by faulty workmanship are included in the coverage provided to an insured under a commercial liability insurance policy. Effective 90 days after this session's adjournment, commercial general liability insurance policies in Arkansas must contain a definition of "occurrence" that includes:

1. Accidents, including continuous or repeated exposure to substantially the same general harmful conditions; and
2. Property damage or bodily injury resulting from faulty workmanship.

Also during first quarter, Utah's SB 79 enacted the Property and Casualty Certificate of Insurance Act. It includes provisions regarding the filing of certificate of insurance forms with the Department of Insurance. It also acknowledges that a standard certificate of insurance form filed for use by a nationally recognized insurance rating organization that is licensed by the department is, in fact, considered filed. Other compliance requirements set forth include the scope of certificates of insurance, addendums, and notices of cancellation.

Finally, Virginia's HB 1412, and the identical HB 1416, both establish a new reporting threshold for certain damaged vehicles. When a vehicle has been damaged by water to such an extent that the insurance company insuring it has paid a claim of $3,500 or more because of this water damage, the insurer must report the claim payment to the Virginia Department of Motor Vehicles.