P&C Legislative Round-Up: August 2020
Here are the key legislative developments from around the U.S., including new laws in Virginia, Colorado 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. Senate Republicans introduced their economic relief package tilted the “Health, Economic Assistance, Liability Protection and Schools Act” (Heals Act). The package will provide more than $100 billion to help schools and universities open, another round of $1,200 direct stimulus checks, and will cut supplemental unemployment benefits to $200 a week through September, among other measures.
The “Small Business Comeback Act” was introduced in the U.S. House of Representatives. The legislation is aimed at providing continued relief to businesses and employees impacted by COVID-19. “This legislation will deliver a massive win for small businesses, workers, and consumers all across America. It improves upon the framework used in the Paycheck Protection Program because it is designed to provide freedom and flexibility to the businesses that were harmed by mandated closures,” said Congressmen Lance Gooden (R-Texas), co-sponsor of the bill, in a statement.
Reps. Mike Thompson (Calif.-05), Peter Welch (Vt.-AL), Bill Johnson (Ohio-06), David Schweikert (Ariz.-06), and Doris Matsui (Calif.-06) introduced the “Protecting Access to Post-COVID-19 Telehealth Act.” The bipartisan bill will continue the expanded use of telehealth beyond the coronavirus pandemic by eliminating restrictions on the application in Medicare and would require a study on the use of telemedicine during COVID-19, according to a press release.
Senators Edward J. Markey (D-Mass.) and Richard Blumenthal (D-Conn.) introduced a package of four bills designed to improve automotive and traffic safety across the U.S.:
- The “Modernizing Seatback Safety Act” that would force automakers and the National Highway Transportation Administration to strengthen seat standards within two years.
- The “Promoting Auto Recalls Toward Safety (PARTS) Act,” which would increase the speed and effectiveness of motor vehicle recalls.
- The “Early Warning Reporting Systems Improvement Act” that will enforce auto manufacturers to provide more information about incidents involving fatalities and serious injuries directly to the public.
- The “Stay Aware for Everyone (SAFE) Act,” which would require the DOT to study how driver-monitoring systems can prevent driver distraction, driver disengagement, automation complacency, and the foreseeable misuse of advanced driver-assist systems, as well as require rulemaking to mandate the installation of driver-monitoring systems based on the results of this study.
State updates
New York introduced a bill that would require law enforcement officers statewide to carry personal liability insurance coverage. The measure aims to establish a financial disincentive for unlawful police violence or intimidation, said the bill’s sponsor Sen. Alessandra Biaggi (D-Bronx).
New York’s state legislature also passed bills that would impose a temporary moratorium on facial recognition in education.
The chair of New York’s workers’ compensation board announced the adoption of emergency amendments to 12 NYCRR 325-1.8, 329-1.3, 329-4.2, 333.2, and 348.2 that will allow for telemedicine in some circumstances in order to promote social distancing due to the coronavirus.
HB 1166 passed in New Hampshire. If voted into law, this legislation would require the state to provide free personal protective equipment to small employers, eliminate cost-sharing for COVID-19 testing and treatment, and extend paid time off for leaves due to the coronavirus.
New Hampshire lawmakers passed HB 1182, which would criminalize the manufacture, sale and installation of counterfeit airbags.
Lawmakers in Pennsylvania passed House Bill 943 that will stop pharmacy benefit managers from imposing “gag clauses” on pharmacists, which may prevent them from recommending cheaper alternative prescription drugs.
HB 2350 and HB 2351 are under consideration in Pennsylvania and concern fraud schemes in the commonwealth’s medical assistance program (MAP). Both bills would require medical providers to have a national or state provider ID as well as increase criminal penalties for false MAP claims, respectively.
Virginia passed the first OSHA standard for COVID-19 in the U.S. The Virginia Occupational Safety and Health (VOSH) will enforce a standard that mandates guidance provided by the CDC and OSHA for most private employers in Virginia, as well as all state and local employees.
The “Insurance Data Security Act” went into effect on July 1 in Virginia. The law imposes various monitoring, reporting and disclosure requirements on insurers as it relates to the personal information of insureds in the commonwealth.
Colorado Gov. Jared Polis signed House Bill 1290 into law that prevents an insurer from raising the failure to cooperate unless certain conditions are met, such as if the information is not available to the insurer without the assistance of the insured.
Iowa approved House File 426 that grants the state’s fraud bureau with full law enforcement authority. According to the Coalition Against Insurance Fraud, the law includes the power to fingerprint and do background checks of those seeking an insurance license.
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