P&C Legislative Round-Up: December 2019
The latest insurance-related legislative and regulatory changes from around the nation.
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 and the U.S. Senate’s Banking, Housing and Urban Affairs Committee voted to reauthorize the Terrorism Risk Insurance Act (TRIA) through 2027. The law, which passed after the 9/11 attacks, creates a federal backstop for insurance claims that arise out of such acts, and its current authorization is set to expire in December 2020. Congress is now urged to move quickly and pass the TRIA extension before the year’s end.
Congress voted to extend the National Flood Insurance Program (NFIP) until Dec. 20, 2019. The 74-20 vote came before the plan would have expired on the evening of Nov. 21, 2019. Lawmakers will now have more time to decide on a number of bills meant to reform the NFIP and reauthorize it through September 2024, including S. 2187, sponsored by Sen. Bob Menendez (D-N.J.), and its companion measure, H.R. 3872, sponsored by Rep. Frank Pallone Jr. (D-N.J.), which would authorize a long-term extension of the NFIP, fight insurance fraud, lower premiums and establish other reforms. President Trump is expected to sign the extension into law.
State updates
North Carolina lawmakers approved the 2019 Storm Recovery Act (HB 200). The disaster relief package includes $121 million to help with the recovery efforts from storms within the past three years, such as Hurricanes Matthew, Florence and Dorian, as well as $59 million to help North Carolinians prepare for future storms.
Hundreds of new laws went into effect in Oklahoma on Nov. 1, 2019, including:
- HB 1218: This law sets new rules for declaring a burn ban.
- HB 1071: This bill raises the speed limit from 70 to 75 mph on select Oklahoma State Highways and specific stretches of the turnpike; the change is expected to help drivers reduce their commute times by seven to eight minutes.
- HB 2010: Under this measure, people would be able to carry concealed weapons but not carry them openly in locations under a public trust, such as the Tulsa and Oklahoma City zoos.
- SB 238: This law requires that products containing CBD be labeled with the country of origin and specify whether the product is natural or synthetic. Products approved by the FDA are exempt from this rule.
On Nov.1, 2020, a new child safety seat law went into effect in New York. The new law requires all children under the age of two to use a rear-facing car seat; the prior law required children under the age of 12 months to be placed in rear-facing seats.
New York Governor Andrew Cuomo signed a bill into law that gives homeowners protection against storm-chasing contractors who exploit natural disasters in New York. The law helps prevent roofing scams by imposing key protections for residents, including requiring written contracts for repair work, forbidding contractors from offering rebates or offering to pay policy deductibles, and requiring contractors to disclose their liability coverage and policy limits.
“This law will help chase storm chasers out of New York. It has pulled the roof off contractor cons that have caused homeowners so much grief and expense. New York has rolled up the welcome mat and put contractors on notice that they’d better stay honest or suffer the penalties,” Matthew Smith, director of government affairs for the Coalition Against Insurance Fraud, said in a release.
Effective Jan. 1, 2020, nurse practitioners in New York can be authorized to treat injured workers. This change is expected to bring a wave of providers into the New York workers’ compensation system and improve workers’ access to health care.
My Chi To has been named executive deputy superintendent of the insurance division at the New York State Department of Financial Services (DFS), which regulates more than 1,400 insurance companies with assets of $4.7 trillion.
Louisiana Insurance Commission Jim Donlon approved an 8.4% reduction in workers’ compensation rates, effective May 1, 2020.
The National Council on Compensation Insurance (NCCI) has agreed to reduce Florida’s workers’ compensation rates by 7.5%, which will become effective on Jan. 1, 2020. The NCCI’s approval comes after Insurance Commissioner David Altmaier issued an order in October rejecting NCCI’s proposed 5.4% rate decrease.
AB 357 has passed the Assembly in Wisconsin and is now in the state Senate. This bill boosts oversight of public adjusters, such as requiring adjusters to register with the insurance department every two years. The law also states contracts must disclose all fees and expenses, with fees capped at a maximum of 10% of insurance recoveries if the insurer agrees to pay the full policy limits within five days, or if the claim arises from a catastrophic loss.
California Insurance Commissioner Ricardo Lara approved the ninth reduction to the state’s workers’ compensation average advisory pure premium rates since 2015. The revised rate lowers the benchmark to $1.52 per $100 of payroll for workers’ compensation insurance, effective Jan. 1, 2020.
Commissioner Lara issued a statement ordering the California FAIR Plan Association (FAIR Plan) to offer a comprehensive policy in addition to its current dwelling fire-only coverage. The Commissioner’s order also asks for the FAIR Plan to increase coverage limits, offer a no-fee monthly payment plan, and allow policyholders to pay by credit card or electronic funds transfer without any fees. The FAIR Plan was established under California law to offer HO-3 comprehensive homeowners’ coverage to save consumers from having to purchase a second companion policy to cover other hazards such as liability, water damage and theft.
The Institute for Justice submitted a petition regarding Colorado’s eminent domain law to the U.S. Supreme Court to resolve whether the Constitution allows private developers to grant themselves the right to use eminent domain in Colorado to seize someone else’s private property for their own gain.
The Colorado Division of Insurance (DOI) approved an 8.5% reduction for the average loss costs (average cost of lost wages and medical payments of workers injured during employment) component of workers’ compensation premiums for 2020.
The New Mexico state board voted Russell Toal to head the state’s Office of the Superintendent of Insurance. In this role, Toal will help regulate insurance across New Mexico.
The Texas Department of Insurance approved the Texas Automobile Plan Association’s filing to increase private passenger auto insurance rates by 4.9% and increase commercial auto insurance rates by 4.8%. The changes are effective on March 1, 2020, for new and renewal business.
The Texas Windstorm Insurance Association (TWIA) announced changes to the windstorm and hail insurance it provides for the Texas seacoast. Beginning Jan. 1, 2020, the type of loss settlement — replacement cost value (RCV) versus actual cash value (ACV) — will be decided at the time the policy is issued as opposed to when a claim is submitted.
Mississippi voters re-elected Insurance Commissioner Mike Chaney to his fourth term.
Jared Kirby has been appointed as Iowa’s deputy insurance commissioner for market regulation, a role in which he will lead the Iowa Insurance Division’s Market Regulation, Fraud, Consumer Advocacy Office, and Enforcement Bureaus.
“The Iowa Insurance Division takes great pride in helping Iowans with questions or concerns regarding their insurance coverage and their investments. I’m pleased to announce that Jared will take on an even greater leadership role that will be of great benefit to Iowans,” Commissioner Doug Ommen said in a release. “As the recent ‘This Is Iowa’ campaign shows, Iowa is very attractive to those looking for a great place to live and work. I’m pleased to be able to keep someone of Jared’s talent level right here working for Iowans.”
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