INDIANAPOLIS (Nov. 22, 2005)— Oregon’s Construction Claims Task Force (CCTF) has yet to address the disadvantages to consumers of designating a "single private insurer" to provide liability insurance coverage for the construction industry, according to the National Association of Mutual Insurance Companies (NAMIC).
“A competitive commercial liability insurance marketplace composed of a significant number of insurance providers affords the construction industry a wide variety of insurance products and rates to consider when addressing its business needs,” said NAMIC West Region State Affairs Manager Christian Rataj. “In contrast, insurance markets that are monopolistic tend to have fewer insurance products for the consumer to select from, which could adversely affect the affordability and availability of commercial liability coverage for small business contractors.”
HB 2078 authorizes the Director of the Department of Business and Consumer Services to retain a qualified expert to study options regarding actuarially sound insurance reforms, alternatives and pricing, including loss control discounts or the designation of a single private insurer to provide required construction contractor insurance.
The expert may review other options consistent with the overall broad goals of the legislation including self-insurance, assigned risk pools, contractor pools and associations, a claim fund for consumers to access for correcting construction defects, a loan fund for contractors to borrow monies necessary to repair construction defects, and the use of voluntary or mandatory warranties.
"NAMIC looks forward to working with the Task Force to address some of the current challenges that exist in the area of construction liability claims,” said Rataj. “NAMIC will file written comments with the Task Force expressing concern about the monopolistic, anti-competition impact of establishing a ‘single private insurer’ to provide insurance coverage to the construction industry, and the adverse impact this proposal could have for the insurance consumer.”
According to the Insurance Study Summary Request For Proposal (RFP), the evaluation shall include an analysis of the market impacts of the various insurance options including:
The next meeting of the task force is scheduled for Dec. 2, 2005.
The Construction Study Task Force Request for Proposal (RFP) can be read online.
For further information, contact
Rick Nelson, APR
(317) 875-5250 Tel
(317) 879-8408 Fax
Posted: Tuesday, November 22, 2005 12:00:00 AM. Modified: Tuesday, November 22, 2005 1:47:28 PM.
317.875.5250 - Indianapolis | 202.628.1558 - Washington, D.C.