IIABO Legislative Update
March 6, 2017
The bill I have been thinking we would see this session, Bad Faith, has finally showed up. It is HB 2858 and was introduced at the request of the House Business and Labor Committee. This is a new twist on a very old concept that you are probably tired of hearing about.
The bill calls for a very in depth process by the insurance division for alleged violations of insurance codes. While this may sound more reasonable than some versions in the past, one must only continue reading to section 7 of the bill to find the second lawsuit authorization. So, under this bill, not only would you have to defend yourself in front of the division, if you win the case there, you are subject to a lawsuit on the same alleged violation. Sort of sounds like double jeopardy, doesn't it?
The bill was assigned to the Business and Labor Committee and I hear it will be scheduled for a hearing sometime before the end of March. Now is the time for you to contact your Representative and ask them to oppose HB 2858, the bill that would subject you to dual legal action for a single alleged incident. The industry is currently working on a document to describe the key elements of the bill. I will get that out as soon as it is available.
DCBS held a work group on SB 95, the mandatory reporting of financial abuse bill this week. They have drafted amendments that eliminate a lot of the concerns that had been identified in the original bill. The big issue they are not willing to change is the reporting being mandatory, rather than voluntary, or the company being the reporting entity. Senator Gelser, the committee chair, is a firm believer in mandatory reporting and the other two democrats are so far following her lead. I expect they will pass the bill out with the amendments at the work session which is scheduled for March 8th. The bill will then go to the Judiciary Committee.
SB 332, the rebating bill, had a public hearing on February 27th. I was the only person to testify in opposition for NAIFA. The committee asked the Nationwide representative if they would consider limiting the bill to only property and casualty insurance lines. Nationwide responded that they do offer life insurance and that they prefer the bill as drafted. It has not yet been scheduled for further action.
IIABO update and bill list 030617.pdf