P&C Legislative Round-Up: September 2020
Here are legislative and regulatory updates from around the country, including the U.S. House, New York and Ohio.
Editor’s Note: At the start of each month, we publish insurance legislative and regulatory news and updates from around the nation.
National updates
Disaster Savings and Resilient Construction Act of 2020The was introduced by U.S. Reps. Bill Pascrell (D-N.J.), Tom Reed (R-N.Y.), Peter DeFazio (D-Ore.) and Mario Diaz-Balart (R-Fla.). The legislation would establish a tax credit to incentivize home and business owners to build or rebuild to higher construction standards after a natural disaster. The tax credit offered is valued up to $3,000 for homes and $25,000 for businesses.
The State and Local IT Modernization and Cybersecurity Act would create a federal funding program for state and local governments to use for cybersecurity investments. The bill proposes three new federal grant programs to help governments replace old legacy systems and move them to cloud-based systems.
Rep. Jim Banks (R-Ind.) introduced the Support Peaceful Protest Act in the U.S. House of Representatives. The legislation aimed to prevent individuals convicted of violence, looting or vandalism in connection with a protest ineligible for enhanced COVID-19 unemployment benefits.
The Cyber Navigators Act, introduced by Rep. John Katko (R-N.Y.), would create a federal grant program to disburse $50 million to help state and local governments hire IT contractors to secure voting infrastructure.
State updates
New York’s Workers Compensation Board adopted an emergency addition of subdivision (d) to 12 NYCRR 329-1.3, to allow reimbursement for COVID-19 testing when there is a claim for workers’ compensation benefits due to workplace exposure to COVID-19.
Assembly Bill 10952 was introduced in New York. If passed, the bill would eliminate the requirement for independent insurance adjusters to hold a surety bond.
A new bill in New Jersey would allow insurers to void auto insurance policies that are purchased in violation of the state’s insurance fraud laws.
SB 872 passed in the California Assembly Insurance Committee. The bill expands the definition of additional living expenses insurers must pay homeowners for losses during a state-declared emergency.
New Special Investigative Unit regulations will soon go into effect in California. According to the Coalition Against Insurance Fraud, the new provisions include an expanded definition of “contracted entities” that must comply; requirements for specific language and duties that insurers must include in contracts with “contracted entities” providing SIU services; and modifying and streamlining red flags insurers use to identify potential insurance fraud.
Washington enacted a new insurance regulation that requires insurers to notify consumers of their rights when insurers make adverse coverage decisions, such as a claim denial, nonrenewal of coverage or coverage cancellation.
HB 606 in Ohio would provide civil immunity from COVID-19-related liability to essential workers, including businesses and schools. The bill has been dubbed the “Good Samaritan Expansion Bill” because it ensures civil immunity to first-responders, doctors, nurses, businesses, schools, and individuals from unwarranted litigation. The legislation passed the Ohio House and Senate and is currently awaiting House concurrence following Senate changes.
SB 8007 failed to pass the Tennessee Senate Commerce and Labor Committee. The bill would have labeled COVID-19 as an occupational illness and would have applied to essential workers’ in specific situations, allowing them the presumption that they contracted the virus at work.
Since the start of the pandemic, the following states have enacted workers’ compensation presumptions of compensability for the contraction of or exposure to COVID-19 for specific employees:
- Alaska: SB 241 established that presumption applies to firefighters, emergency medical technicians, paramedics, peace officers, and healthcare providers.
- Illinois: HB 2455 states presumption applies to first responders or frontline workers.
- Minnesota: HF 4537 provides that presumption applies to a licensed peace officer, firefighter, paramedic, nurse, or healthcare worker, correctional officer, or security counselor employed by the state or a political subdivision at a corrections, detention, or secure treatment facility; emergency medical technician; healthcare provider, nurse, or assistive employee employed in healthcare, home care, or long-term care setting with direct COVID-19 patient care or ancillary work in COVID-19 patient units; and workers required to provide child care to first responders and healthcare workers under certain executive orders.
- Utah: HB 3007 established presumption applies to first responders, including emergency responders and healthcare providers.
- Vermont: S 342 applies presumption to “frontline workers” as well as other workers if certain conditions are met.
- Wisconsin: AB 1038 allows presumption applies to first responders, including an employee or volunteer for an employer that provides firefighting, law enforcement, or medical treatment of COVID-19, as well as employees who have regular, direct contact with, or is in regular proximity to patients or other members of the public requiring emergency services.
- Wyoming: SF 1002 states that presumption is applicable for the period January 1, 2020, through December 30, 2020, to any employee covered by the state workers’ compensation act infected with COVID-19.
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