P&C Legislative Round-Up: September 2019

Editor’s Note: At the start of each month, we publish insurance legislative news and updates from around the nation.

National updates

House Representatives Bonnie Watson Coleman (D-N.J.) and Rashida Tlaib (D-Minn.) introduced the Prohibit Auto Insurance Discrimination Act, or PAID Act, which would prevent insurance companies from using income, education levels, and other factors unrelated to driving history and ability, and only use driving records, in determining car insurance rates and eligibility.

The Justice for Victims of School Shootings Act was introduced in Congress on Aug. 23 by Congressman Randy Weber (R-Texas). If enacted, the bill would will render actual or attempted school shootings a federal crime, and will provide federal law enforcement and prosecutors the ability to pursue federal charges against anyone who:

• In the course and scope of discharging a firearm causes death or serious bodily harm on a school, college or university campus;
• Or anyone who attempts or conspires to commit a shooting on a school or university campus.

“The growing number of victims and families left grieving from these atrocious acts of violence leaves Congress no other choice but to fight back … My bill will allow federal prosecutors more options in their fight against anyone targeting students,” Congressman Weber said in a statement.

State updates

New Jersey Governor Phil Murphy signed into law two bills aimed at helping injured motorists recover medical costs:

• S-2432 permits injured crash victims to seek payment for medical expenses due to the negligent or reckless actions of another driver when those expenses exceed their PIP coverage.
• S-3963 allows the injured person to recover all unreimbursed medical expenses not covered by his/her own PIP limits or expenses that are in excess of a driver’s PIP limits to the automobile medical fee schedules.

Law SB-194 was signed into law by New Hampshire Governor Chris Sununu. The law requires insurers licensed in the state to place data security programs and report cybersecurity events. The bill takes effect Jan. 1, 2020, at which point insurers have one year to comply with the law and two years to ensure third-party vendors also comply.

Delaware Governor John C. Carney, Jr., signed House Bill 174 into law. Also known as the Delaware Insurance Data Security Act, the law requires those in the insurance business who are licensed in Delaware to implement information security programs, report data breaches in a timely manner to the commissioner and consumers, and empower the insurance department to investigate violations of the act and levy penalties accordingly.

“Over the past several years, we have seen time and again consumers’ information be compromised or stolen by hackers’ cyber threats to insurers,” Insurance Commissioner Trinidad Navarro said in a statement. “By codifying a regulatory standard that requires all insurance licensees in Delaware to implement information security programs and timely report data breaches to the department and consumers, HB 174 enhances Delaware’s consumer protection measures to hold companies accountable and give consumers the peace of mind that they deserve.”

Two bills were signed by Gov. Andrew Cuomo to strengthen New York’s data privacy and security protections:

• The Stop Hacks and Improve Electronic Data Security Act, or SHIELD Act, will broaden the definition of what’s considered a data breach; set new requirements for when consumers should be notified; and prohibits individuals from bringing civil litigation against companies that don’t take the legally prescribed steps to protect their data. Enforcement, instead, will be exclusively handled by the state Attorney General’s Office.
• SB-3582 will require a consumer credit reporting agency to offer identity theft prevention and mitigation services in the case of a breach of the security of such agency’s system.

Texas Senate Bill 615 went into effect Sep.1. The bill, also known as the “Sunset Bill”, relates to the operations and functions of the Texas Windstorm Insurance Association (TWIA). It sets new standards for the TWIA board, including training and transparency, and makes it a requirement for the association to publish its rate adequacy analyses publicly at least 14 days before a board vote on a proposed rate filing. Additionally, it requires TWIA to accept public comment prior to the board’s vote.

The Texas Department of Insurance approved changes to the National Council on Compensation Insurance (NCCI) Basic Manual for Workers Compensation and Employers Liability Insurance, which will apply to new and renewal workers’ compensation policies effective on and after July 1, 2020. Changes to the manual include:

• Eliminate or replace certain national and state special classifications;
• Revise Appendix E, ‘Table of Classifications by Hazard Group,’ to update codes being eliminated or established;
• Revise certain state special phraseologies.

A new Texas state law titled Payment of Insurance Deductible (HB-2102), went into effect Sep. 1, 2019, making it illegal for a contractor or roofer to waive an insurance deductible.

Texas SB-2339 will require homeowners to disclose more information about flood risks and flood history, including whether the home is located in a 500-year floodplain, a flood pool, in or near a reservoir, before selling their property. The law went into effect on Sep. 1.

On September 1, the following laws relating to workers’ compensation took effect in Texas:

• HB 29: Allows certain physical therapists to treat patients without a referral for up to either 10 or 15 consecutive business days, depending on the therapists’ qualifications.
• HB 387: Permits a treating doctor to delegate the authority to complete and sign a DWC Form-073 (Work Status Report), regarding an injured employee’s ability to return to work, to an advanced practice registered nurse.
• HB 2143: Clarifies that post-traumatic stress disorder (PTSD) is a compensable injury for first responders if the disorder was caused by one or more events in the course and scope of employment, rather than a single event. (Effective for new injuries occurring on or after Sep. 1)
• HB 2503: This bill expands first responder death benefits, regardless of remarriage, to spouses of peace officers and intrastate fire mutual aid system team members or regional incident management team members.
• SB 1336: States the elimination of the Texas Department of Insurance’s statutory obligation to develop workers’ compensation classification relativities.
• SB 1582: Extends the statutory presumption that certain occupational diseases, including smallpox or other diseases that can be immunized, tuberculosis or other respiratory diseases, and heart attacks and strokes, are work-related to a peace officer.

Related: P&C Legislative Round-Up: August 2019