2013 STATE LEGISLATIVE & REGULATORY PRIORITY ISSUES
To see a list of all state and federal issues which have the potential to affect NAMIC members companies, and to learn more about them, please visit the Legislative & Regulatory Issues page.
NAMIC’s top state legislative issue remains adoption of rate modernization laws that create approval standards that are less restrictive than prior approval. In recent years, NAMIC succeeded in getting a handful of states to adopt flex-band laws that do not require prior approval if any rate increases or decreases fall within a prescribed percent range. Read more >>
Over the past several years, NAMIC has continued to fight attempts by state legislators to ban or severely restrict the use of credit-based insurance scoring as part of the underwriting process, and NAMIC has been successful in not having any additional states adopt such prohibitions. NAMIC also has been successful in blocking attempts by some lawmakers to argue that “disparate impact” theory should be applied to credit-based insurance scores.
NAMIC has been active with broad-based coalitions that have sought to bring tort reforms to the states, including product liability reforms and to oppose bad faith laws. Another tort issue – third-party litigation funding – is gaining momentum in the states and has the potential to radically alter the legal landscape. NAMIC is working with industry partners to ban or severely restrict this practice.
In the wake of recent natural disasters along the Atlantic and Gulf of Mexico coastlines, NAMIC has fought for stronger statewide building codes and other disaster mitigation measures to help minimize future damage. At the same time, NAMIC has opposed creation of state catastrophe funds/plans, while continuing to promote proposals that are based on actuarially sound rating and loss mitigation.
While the solvency of insurance companies has always been a focus of policymakers, current efforts to strengthen U.S. regulations governing financial reporting requirements are largely being driven in response to European initiatives affecting the solvency of major financial enterprises. The federal Own Risk Solvency Requirement and changes at the state level to the Model Holding Company Act are two key regulatory topics central to the modernization of solvency rules.
Posted: Wednesday, June 27, 2012 2:09:57 PM. Modified: Tuesday, March 19, 2013 9:44:46 AM.
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