P&C Legislative Round-Up: November 2019
Here are the most recent insurance-related legislative and regulatory updates nationally, including news from California, Florida, and more.
Editor’s Note: At the start of each month, we publish insurance legislative and regulatory news and updates from around the nation.
National updates
The U.S. House of Representatives Financial Services Committee passed a bipartisan bill to extend the Terrorism Risk Insurance Program (TRIP) for seven years in a unanimous vote. The most notable change to the bill is the inclusion of a mandate for a study to be conducted on cyber terrorism, including whether the risk-share system is appropriate for a cyber terrorism attack, and whether cyber coverage can be adequately priced by the private market.
The bipartisan Reduce Impaired Driving for Everyone (RIDE) Act of 2019 was introduced to the Senate. Co-sponsored by Sens. Tom Udall (D-N.M.) and Rick Scott (R-Fla.), the bill would promote the research and development of advanced alcohol detection software that would prevent a vehicle from being operating if the driver is impaired. The bill would also require automakers to include such technology in new cars and trucks.
The U.S. Department of Labor finalized a rule that will allow states to drug test unemployment compensation (UC) applicants. The rule will go into effect Nov. 4, 2019, and only applies to applicants for whom suitable work is only available in an occupation that regularly drug tests.
State updates
Louisiana Insurance Commissioner Jim Donelon approved a rate reduction for Louisiana-based auto insurance provider GoAuto, which will impact an estimated 1.5 million Louisiana policyholders. The action comes as competition in the state’s auto insurance market continues to thrive, driving more affordable rates for consumers. Rates for renewal policies will go into effect on Nov. 7, 2019, while prices for new policies were implemented in October.
California Governor Gavin Newsom signed 22 bills aimed at preventing and fighting wildfires, including:
- AB 38: This law provides mechanisms to develop best practices for community-wide resilience against fires through home hardening, defensible space, and other measures.
- SB 190: SB 109 aims to increase the resilience of communities through the creation of models for defensible space and additional standards for home hardening and construction materials.
- SB 209: This bill establishes a new weather technology center modeled after the state’s intelligence fusion centers.
- AB 1823: Assembly Bill 1823 facilitates fuel reduction and other forest health projects.
“Reducing the risk of wildfires, especially home-hardening and creating defensible spaces around our homes, is critical to our efforts to keep insurance available and affordable for Californians living with this reality,” said Insurance Commissioner Ricardo Lara in a statement. “By encouraging investment to mitigate risks from catastrophic wildfires, AB 38 and SB 190 will help communities threatened by insurance non-renewals and rising costs.”
Gov. Newsom also signed AB 1816 into law, which requires insurers to provide homeowner insurance policyholders with a minimum 75-day notice when they non-renew a policy. Current law requires insurers to notify insureds at least 45 days before the expiration of a policy. The new rule applies to policies that expire on or after July 1, 2020.
An initiative was introduced to the California Privacy Rights and Enforcement Act of 2020 (CCPA) by Californians for Consumer Privacy (CCP). The measure would create a new independent executive agency that would enforce the law and provide necessary guidance to industry and consumers. CCPA will go into effect Jan. 2020.
New employment-related bills were signed into law in California including:
- AB 9: Also known as the Stop Harassment and Reporting Extension (SHARE) Act, this bill extends the deadline for employees to report complaints alleging employment discrimination or harassment to three years.
- AB 673: This law gives employees the right to recover civil penalties for unpaid wages. It will also authorize affected employees to bring an action to recover penalties against the employer as part of a hearing held to recover unpaid wages.
On Nov. 1, thousands of Florida consumers will be forced to find new insurance coverage after Florida Specialty Insurance Co. was deemed insolvent and ordered it into receivership by the Florida Department of Financial Services.
Florida Insurance Commissioner David Altmaier issued an order to reduce workers’ compensation rates by 7.5% for 2020. The National Council on Compensation Insurance previously proposed a rate decrease of 5.4%, which was rejected. If the new rate is approved by Nov. 4, 2019, it will go into effect on Jan. 1, 2020.
SB 712 will go into effect on Nov. 1 in Oklahoma. The new law relating to DUIs will give drivers arrested for impaired driving the option to choose the Impaired Driver Accountability Program instead of an appeal to keep their license. Drivers will have 30 days after an arrest to decide to enroll in the program before their license is revoked.
SB 350 was introduced to the Pennsylvania Senate that would end the state’s prohibition of cannabis and automatically expunge many previous criminal convictions related to marijuana. The bill’s aim is to establish a fair protocol for the use, sale, and regulation of cannabis.
“Pennsylvania’s cannabis policy is cruel, irrational and expensive,” said State Senator Daylin Leach (D), who co-sponsored the bill, in a statement. “Prohibition has destroyed countless lives and has cost taxpayers millions.”
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