P&C Legislative Round-Up: July 2020

Here are the insurance-related legislative updates from Michigan, California, Louisiana and more across the U.S.

Legislative and regulatory news from Louisiana, California, Michigan and more. (Photo: iStock)

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 Paycheck Protection Program Flexibility Act passed the U.S. House. If passed, the reform bill would provide more flexibility to small businesses using the Paycheck Protection Program (PPP) relief loans. Other changes to the program include extending the eight-week period in which funds must be spent for forgiveness to 24 weeks, as well as extending the repayment period money owned from two years to up to five years.

U.S. Representative Josh Harder (D-Calif.) announced plans to introduce the Protecting Students from Cybercrimes Act, which would provide $25 million in grants to help school districts around the country harden their cybersecurity infrastructure over the next five years. It will also create funding for apprenticeships and career opportunities for students interested in cybersecurity careers. “The School Cybercrime Protection and Preparedness Act would provide us with the opportunity to shore up our defenses against a growing and real problem for school districts,” said Scott Siegel, Superintendent Ceres Unified School District, in a statement.

The U.S. House voted to increase the mandatory minimum insurance coverage for commercial motor vehicles from $750,000 to $2 million. Trucking safety groups count the passing of the amendment as a victory for the families of crash victims, as it will help to compensate victims of accidents involving large trucks adequately.

HR 7055, also known as the “Coronavirus Scammers, Crooks, and Manipulators Act,” or the “SCAM Act,” was introduced in the U.S. House. The bill states that a person found guilty of COVID-19 fraud “be fined not more than $1,500,000 or imprisoned not more than 45 years, or both.”

State updates

Louisiana Governor John Bel Edwards vetoed Senate Bill 418, or the Omnibus Premium Reduction Act of 2020, that would have reduced auto insurance premiums in the state.

However, House Bill 66 has passed the Louisiana Senate. The bill would lower auto insurance rates by 15% in four years if signed into law, The Advocate reported.

In July, Michigan’s new no-fault system will take effect. The system reform is expected to lower premiums for some drivers. Motorists will now have the choice to choose their amount of personal injury protection coverage or opt-out entirely if they have Medicare or if their health insurance plan covers auto accidents.

SB 739 in North Carolina would allow the use and regulation of “small personal delivery robots” around the state. The bill is awaiting a decision from the governor.

A proposed bill in New York City would force police to inventory and publicize all of the surveillance devices that they use. The bill would also require that the NYPD issue a surveillance impact and use policy that includes information such as the technologies’ description and capabilities, rules, processes and guidelines, and any safeguards and security measures designed to protect the information collected.

A Washington, D.C., court denied a petition that would have forced the Occupational Safety and Health Administration (OSHA) to issue an emergency safety ruling due to COVID-19. The court said that OSHA’s assertion that a temporary emergency standard to prevent workers from occupational exposure to COVID-19 was unnecessary at this time was a reasonable determination.

A new law in Indiana goes into effect on July 1 that makes it illegal for drivers to hold their phones while driving except when calling 911.

New auto insurance minimums are now in effect in Arizona. As of July 1, drivers in the state will need to carry $25,000/$50,000/$15,0000 coverage — up from the previously-mandated $15,000/$30,000/$10,000 coverage. Drivers who currently have a policy with the lower limits will see their limits automatically increased when the policy renews.

Vermont Governor Phil Scott signed a new bill into law that increases efficiency and adds flexibility to the state’s regulatory policies and procedures regarding captive insurance. The bill also includes new plans for Vermont’s captive protected cells.

SB 2338 in Iowa was signed into law by the governor. The bill clarifies rules around recovering damages for medical expenses in personal injury cases.

The California Department of Insurance issued a new online automobile insurance comparison tool that reflects changes in regulations that prohibit the use of gender in private passenger automobile insurance rating. “Drivers have no control over personal characteristics like their gender,” said Insurance Commissioner Ricardo Lara in a release. Now factors that are under a driver’s control, such as the driver’s record, at-fault accidents, traffic violations, and their experience behind the wheel, will only be used in rate-setting.

SB 872 in California passed the state’s Senate. If passed, the bill would expand the definition of “additional living expenses” that must be paid to homeowners for losses that are incurred during a state of emergency. It also provides homeowners with a 60-day grace period for payment of residential premiums after an emergency occurs and bars insurance companies from deducting the land value from payouts for insureds who build on new lots.

House Bill 1290 in Colorado passed the state’s House and Senate. The original draft of the bill would have had “dire unintended consequences by watering down the fraud fight,” says the Coalition Against Insurance Fraud. The compromise bill was reached to avoid concerns of even more-strenuous provisions being included in the law, the Coalition adds.

In June, several states enacted new legislation in response to the coronavirus (COVID-19), including:

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