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2002 Survey of New State Insurance Laws
Summary and Issue Trend Analysis
This edition of the NAMIC annual Survey of New State Insurance Laws covers 240 property/casualty laws approved by 44 state legislatures in 2002. Six state legislatures (Arkansas, Montana, North Dakota, Nevada, Oregon, and Texas) did not convene in regular session last year. The following states are included in this year's survey with the number of new property/casualty laws noted in parenthesis for each.
Alabama (2), Alaska (3), Arizona (11), California (15), Colorado (11), Connecticut (3), Delaware (2), Florida (12), Georgia (8), Hawaii (2), Idaho (5), Illinois (6), Indiana (0), Iowa (6), Kansas (5), Kentucky (8), Louisiana (6), Maine (4), Maryland (5), Massachusetts (4), Michigan (6), Minnesota (9), Mississippi (2), Missouri (3), Montana (1), Nebraska (5), New Hampshire (3), New Jersey (2), New Mexico (5), New York (7), North Carolina (4), Ohio (1), Oklahoma (9), Pennsylvania (4), Rhode Island (6), South Carolina (8), South Dakota (4), Tennessee (6), Utah (7), Vermont (5), Virginia (8), Washington (10), West Virginia (4), Wisconsin (1), Wyoming (2).
A handful of states stand out this year as having approved the greatest number of new laws that directly impact the property/casualty industry. States with the most new laws include California (15), Florida (12), Arizona and Colorado (11), Washington (10), and Minnesota and Oklahoma (9). At the other end of the spectrum are states like Indiana (0), Montana (1*), Ohio (1), Alabama, Delaware, Hawaii, Mississippi, New Jersey, and Wyoming (2), where the fewest new property/casualty-related laws were approved.
Several notable issue trends emerge from this survey of new state laws. This year's report identifies 22 distinct categories of laws that are each fundamentally important to the property/casualty industry. Automobile insurance represents the most common issue trend to surface this year. The 2002 survey identifies 60 new automobile insurance-related measures addressing, among other things, traffic safety, underwriting standards, data reporting, and proof of financial responsibility.
Workers' compensation is the second most common issue trend to surface from among the many new state laws identified in this report. Forty-five new workers' compensation laws are now in effect in 23 states. These new provisions address a host of specific workers' compensation issues including specific doctor and hospital coverage requirements, rating organizations and criteria, self-insurance, benefit calculations, and numerous substantive and technical updates and changes to state workers' compensation chapters.
New laws pertaining to licensure, credit-based insurance scoring, financial regulation, investment tax credits, and rate (and form) regulation are the other relatively more recurrent and distinct themes to emerge from this year's survey.
Other, more general, categories of new laws identified in this survey include state building codes, captive insurance, electronic commerce, fraud, mold, premium finance arrangements, privacy/disclosure, tax issues, records retention, structured settlements, telephone marketing, unfair trade practices, uniform arbitration, and uniform commercial code changes.
Inside This Summary
The single most common category of new property/casualty law identified in this year's survey pertains to regulation of the automobile insurance industry. Sixty auto insurance measures, approved in 27 states, account for one-quarter of all the new laws identified in this year's survey.
The auto insurance category comprises several distinct sub categories. Newly enacted provisions characterized generally as 'traffic safety' are the most common of these. This report identifies four basic types of traffic safety measures: driving under the influence (DUI); seatbelt/child restraint requirements; graduated driver's license standards; and speeding violations. Over twenty-five percent (16) of the new auto insurance laws identified in our survey address these four traffic safety issues. Alaska (HB 4), Colorado (SB 57), New Mexico (SB 133), Pennsylvania (SB 238), Utah (HB 17), and Virginia (HB 922) approved new DUI standards. New laws applicable to child restraint systems were enacted in five states (Arizona HB 2402, California AB 1902, Colorado HB 1070, Georgia HB 1066, and Oklahoma HB 2785.) Oklahoma HB 1982, which grants municipalities authority to pass mandatory seat belt laws for front seat passengers and Washington HB 1460, which establishes primary seat belt enforcement, stand out as the lone new seat belt laws. Two states (Alabama SB 124 and North Carolina HB 1546) also enacted legislation establishing or enhancing existing graduated driver's license requirements. And, New Mexico (HB 95) has established new penalties for construction zone speeding violations.
Another distinct and recurring theme among the various new automobile insurance laws is a category that encompasses notification, claims handling or general coverage requirements. Ten such laws were approved in 9 states last year. Four of these measures (Colorado HB 1050, Virginia HB 580, Washington SB 6234, and West Virginia SB 459) create additional insurer notification requirements. Four others (California SB 1427, Minnesota SB 1226, New Hampshire HB 1434, and New York AB 10456) address specific coverage requirements. And, the last two (Georgia HB 1157 and Virginia HB 81) establish new protocols for the handling of auto insurance claims.
Five new auto insurance laws address mandatory accident and coverage verification reporting requirements. California SB 1590 increases the level of damage by which insurers are obligated to submit accident reports. Georgia HB 1314 creates proof of coverage reporting requirements for auto insurers. Nebraska L488 creates a statewide motor vehicle insurance database, which requires insurer participation. Oklahoma SB 1301 simply establishes a 60-day confidentiality period after accident reports are filed. And, South Carolina HB 5105 creates a motorist insurance database.
Four states approved new laws establishing prohibitions or conditions on adverse underwriting decisions. Colorado HB 1005 prohibits cancellations, nonrenewals or any other adverse underwriting decision based on a driver's license suspension. Illinois HB 4371 prohibits insurers from canceling or refusing to renew based solely on the prior filing of hate crime claims. Kansas HB 2879 prohibits adverse underwriting decisions based on a failure to maintain membership in a bona fide association. And, the Rhode Island legislature approved two new laws (HB 6787 and SB 2490) to prohibit refusal to renew auto coverage based on specific prior loss occurrences.
Another notable category of new auto insurance law relates to salvage vehicle titles. Four states passed laws in 2002 regulating the issuance of vehicle salvage titles. Arizona HB 2415 establishes additional procedures for the issuance of a certificate of title for salvage vehicles including an affidavit that the vehicle airbag has been removed. Colorado HB 1189 establishes specific verbiage requirements for salvage vehicle titles. Illinois HB 4407 allows owners of hail-damaged, total loss vehicles to maintain ownership if the vehicles are determined to still be operationally sound. And, Washington SB 6530 revises the definition of salvage vehicles.
Three states approved new auto insurance measures directly related to a car dealer's insurance coverage requirements. Illinois HB 4975 establishes minimum liability coverage requirements for car dealers. The other two new laws (Kentucky HB 260 and New Mexico SB 395) are somewhat more alarming in that they establish a car dealer's insurance as secondary to the primary auto coverage of an operator of any vehicle tested or loaned by the car dealer.
Two new auto coverage laws pertain to proof of coverage requirements. California SB 180 exempts Los Angeles and San Francisco area motorists from proof of financial responsibility requirements. And, Georgia HB 1314 requires vehicle owners to obtain and provide proof of coverage within a specified time frame.
Two other states approved new laws impacting uninsured motorist coverage. Mississippi HB 666 allows for the purchase of single-limit, nonstacking uninsured coverage for vehicle fleets. Virginia SB 151 eliminates the prior approval of uninsured motorist rates and authorizes file and use procedures.
New laws related to the arbitration of automobile insurance claims were also enacted. Rhode Island SB 2708 authorizes provisions in auto policies that allow injured parties to submit claims (less than $25,000) to arbitration. Utah SB 120 allows claims initiated by one named insured against another named insured to be handled through binding arbitration.
In addition to the nine sub categories of auto insurance laws enumerated above several, more general, new single state issues were also approved. Arizona SB 1006 extends the life of the state's Auto Theft Authority. Colorado HB 1050 requires insurers to explain cost savings associated with the election of managed care auto coverage, while SB 90 extends the date of repeal of the state's motor vehicle PIP laws. Hawaii HB 1730 raises the driver's education fund underwriters fee. Idaho SB 1444 makes changes to provisions governing self-instructed accident prevention courses for senior drivers. Louisiana HB 61A provides that certain changes to auto policies (including addition of drivers or vehicles) does not necessitate completion of a new policy contract, while SB 89A makes it illegal for undocumented aliens to operate a motor vehicle without proof that they are legally present in the country. Minnesota approved a new law (HB 2570) authorizing auto insurance to cover damage to vehicle glass on the same basis as repairs to other parts of the vehicle. New York AB 7742 allows rental car companies to hold customers liable for damages to rental vehicles. In Rhode Island, SB 2112 was enacted, requiring auto insurers to suspend coverage for insureds entering military duty. And finally, the Virginia Legislature approved HB 81, raising the cap on auto insurance claims in situations where it is determined that the insurer relied on bad faith to deny payment.
Two states approved new building code-related laws in 2002. In Florida, HB 1307 delays the requirement for residential property rate filings to include discounts, credits or other rate differentials for properties utilizing construction techniques demonstrated to reduce windstorm property damage losses. And, in New Hampshire legislation was enacted to adopt the model provisions of the International Building Code 2000 as well as the International Mechanical, Fire Prevention, Plumbing, Energy Conversation and Electrical codes as part of the statewide building code.
New laws aimed at captive insurance entities were also enacted last year. The South Carolina legislature approved a measure (SB 965) amending various provisions of its captive insurance laws. Specifically, this new law creates a regulatory and supervisory fund, defines special purpose captives, and authorizes the insurance department to determine appropriate levels of unimpaired capital and surplus. Hawaii SB 3040 changes procedures that allow the insurance commissioner to release nonpublic information about captive insurers.
Three states approved new electronic commerce provisions last year. Two of these states (Colorado HB 1326 and Connecticut SB 561) actually enacted the Uniform Electronic Transactions (Model) Act giving legal effect to and governing the use of electronic records. New York approved a new law (SB 7289) creating the Electronic Signatures and Records Act to allow government entities to receive, produce, transmit, record and store electronic signatures.
Ten new laws identified in this year's survey establish or refine specific financial regulations. Five of these address changes to the states' guaranty funds. California AB 2007 extends the temporary 2% limit on member premium payments to the California Guarantee Association. Maine SB 268 amends provisions of the Maine Insurance Guaranty Association Act governing the payment of covered claims, claims that do not include first party insured claims and those whose net worth is greater than $25 million at the end of the year before the member became insolvent. Missouri HB 1468 changes the time frame in which insolvency claims are required to be filed with the state's property/casualty Insurance Guaranty Association. New Jersey limits claims covered by the state Surplus Lines Guaranty Fund and narrows the scope of coverage for medical malpractice and homeowner's claims. And, Vermont HB 747 changes the definition of insolvent insurer under the provisions of the state's property/casualty Insurance Guaranty Association to mean insurers against whom final liquidation orders have been entered with a finding of insolvency by a court of competent jurisdiction in the insurer's state of domicile instead of when it was determined to be insolvent by a court of competent jurisdiction.
Three other new financial regulation laws address the regulation of insurer investment practices. California AB 2354 establishes circumstances under which certain domestic insurers may engage in derivative investments. Michigan HB 5927 makes numerous changes to the laws governing qualified investment procedures. South Carolina HB 5037 creates the Investments of Insurers Act to govern insurer investment practices.
And two more general financial regulation measures were approved in New York and North Carolina. New York AB 11821 allows for the inclusion of gross defined assets as admitted assets, while North Carolina HB 1546 establishes that insurers shall pay the cost of independent financial service experts hired by the state to help conduct insurer examinations.
Three states approved new anti insurance fraud measures in 2002. Arizona HB 2435 establishes the powers of the state's insurance fraud unit investigative staff. Massachusetts SB 2096 defines any act of insurance fraud as a felony offense involving either fines or jail terms. And, Minnesota SB 3015 creates a division of insurance fraud prevention within the state insurance department.
Credit-Based Insurance Scoring
Credit-based insurance scoring continues to be one of the most highly contentious issues facing the insurance industry. This issue was in fact the source of a significant level of legislative attention last year. NAMIC monitored 66 related bills introduced in 30 states in 2002. In the end, however, 11 states actually passed new laws related to credit-based insurance scoring.
The most potentially problematic new laws, those establishing prohibitions against credit-based insurance scoring as a primary factor in rendering adverse underwriting decisions, were approved in four states (Idaho SB 1408, Maryland HB 521, Missouri HB 1502, and Utah HB 110.)
Three other states (Minnesota, Rhode Island, and Washington) approved new measures requiring filing and approval of credit-based insurance scoring methodologies. Minnesota SB 2363 not only requires insurers to file credit-based insurance scoring methodologies, but also prohibits the practice for homeowners or auto insurance unless other rating factors are also considered and requires disclosure. Rhode Island HB 8027 allows the use of credit-based insurance scoring in the rating and underwriting of homeowners insurance if the insurer can demonstrate to the state insurance the predictive nature of the specific scoring methodology used. And, Washington prohibits adverse underwriting decisions based on an absence of credit history, or the use of credit-based insurance scoring to establish premium level or eligibility unless the specific scoring methodology is filed with the state insurance commissioner.
A handful of states also enacted more general provisions related to this issue. Arizona HB 2386 requires insurers who use credit history information in the process of rendering an adverse underwriting decision to provide information to the insured about how to obtain the credit report used. California AB 1068 imposes additional reporting requirements on insurers who use credit-based insurance scoring as a basis for taking adverse actions against consumers. Delaware SCR 35 requires the insurance commissioner to promulgate rules to govern the proper use of credit scoring by insurers and the commissioner to study and make a report on the issue to the full legislature in 2003. Kansas SCR 1623 creates a task force to study the regulation of credit-based insurance scoring practices. And, Maryland HB 1002 prevents insurers from establishing specific payment plans for individuals based on their credit history.
Ten new laws that regulate the use of investment tax credits by insurance companies were approved in seven states last year. Four of these investment tax credit laws were approved in the Iowa Legislature. Most of these (Alabama HB 627, Georgia HB 1441, Iowa HB 2271 and HB 2078, Kansas HB 2505, Louisiana HB 267, and Vermont HB 208) establish premium tax credits for certified capital and special fund investments.
Two new measures were approved that make changes to existing enterprise zone tax credit laws. Arizona HB 2181 addresses procedures to address the award of tax credits for employee departure, change of ownership, and prohibitions on credits within military reuse zones as well as more general qualification requirements. Iowa HB 2378 provides for tax credits under the housing portion of the enterprise zone program for insurance companies. And finally, Iowa also approved a new law (HB 2035) establishing a property rehabilitation tax credit applicable to the franchise and premium taxes.
Another prominent issue trend to emerge this year pertains to licensing standards. Fifteen states approved 18 new licensing laws in 2002 covering a variety of specific issues including general revisions to licensing standards for nonresidents and surplus lines brokers, limited licensing of rental car employees, fingerprint requirements, activate military status of licensees, increased renewal fees, and more general licensing requirements including efforts to comply with the National Association of Registered Agents and Brokers (NARAB) provision in the Gramm-Leach-Bliley Act (GLBA).
Nine states (Idaho SB 1432, Kentucky HB 165, Massachusetts HB 28, Michigan HB 5313, Ohio SB 129, South Carolina HB 4096, Tennessee HB 2889, Vermont HB 186, and West Virginia HB 4497) enacted legislation last year aimed at establishing compliance with GLBA or other more general licensing parameters.
Two states (California AB 2984 and Florida HB 1841) passed new laws making revisions to nonresident licensing standards. Two others (Idaho HB 484 and South Dakota HB 1134) approved changes to surplus lines brokers licensing requirements. And, two states (South Carolina HB 3822 and Washington SB 6481) also approved measures establishing limited licensing requirements for rental car employees.
Arizona HB 2026 allows active military duty licensees to be placed on inactive status by the state insurance department. Delaware SB 436 simply increases renewal fees for agents, surplus lines brokers, consultants, fraternal representatives, adjusters and appraisers. And finally, Washington State (HB 2550) approved a measure governing fingerprint-licensing standards.
The Pennsylvania House (HR 434) and Senate (SR 171) both passed resolutions urging the Department of Health to study the health effects of toxic mold.
Three states approved new laws related to premium finance arrangements. Florida HB 1247 allows insurers to assess additional premium finance charges. Georgia HB 24 requires insurers to provide change of address notification, allows imposition of service fees until the agreement is paid in full, provides specifications regarding refunds of unearned finance charges, and authorizes electronic transfer and storage of premium finance agreements. And, Maryland HB 229 establishes maximum delinquency, collection and cancellation charges allowable under premium finance arrangements.
Seven new laws were enacted in five states last year related to privacy and confidentiality requirements. Alaska (HB 246) and Florida (HB 1355, HB 281 and HB 1767) approved new laws related to the confidentiality of insurance documents maintained by the state insurance department. Three other states (Connecticut SB 352, Idaho HB 408, and Illinois HB 4989) passed laws authorizing the state insurance department to adopt rules to ensure compliance with GLBA privacy requirements.
Eleven new laws were approved in ten states last year addressing rate and/or form filing requirements. Arizona HB 2204 increases the waiting period, after filing, before rates can be used. Michigan SB 1213 exempts all commercial coverages (exept workers' compensation) frm rate and form filing requirements if the policy uses specific disclaimer language. New Hampshire HB 1223 creates a committee to study insurance rating model laws. New Mexico SB 256 grants the superintendent of insurance authority to exempt any entity from form filing requirements that has already been exempted from rate filing requirements. Oklahoma SB 19 establishes new rating regulations for rural fire districts. Rhode Island SB 2449 establishes prior approval requirements for policy forms. South Carolina (HB 4852) and Virginia (SB 154) exempt large commercial insurance policies from rate filing requirements. Louisiana (HB 75A) and West Virginia (SB 479) make changes to rate and form filing fees. And, Louisiana HB 149A prohibits the state rating commission from approving more than one rate increase for any insurer more than once per rate classification during any six month period.
Two states passed laws last year establishing additional records retention requirements. Illinois SB 1996 requires notification records about non-deductible producer compensation be retained for 7 years. And, South Dakota HB 1020 increases from 3 to 5 years the period of time insurers must retain mailing receipts for policies delivered by mail.
New laws creating procedures and protections related to structured settlements were approved in four states. Three states (Mississippi SB 2912, South Carolina HB 3943, and Utah SB 163) created actual structured settlement protection acts, while New York approved a new measure (AB 6936) prohibiting the indirect transfer of structured settlement payment rights.
Six states approved new laws last year impacting insurer tax requirements. Colorado SB 76 increases net direct premium assessments from 1% to 2%. Florida SB 1058 increases the base for the state excise tax on property insurance premiums to fund the firefighters pension fund. Iowa SB 2318 implements a phased-in premium tax reduction. Kansas (SB 508) and Maine (HB 1704) establish special levies on fire insurance companies and policies. And, Louisiana HB 266 raises the minimum annual license tax for certain insurers.
Six states enacted legislation in 2002 related to telemarketing practices. Kentucky (HB 47) and Pennsylvania (HB 1469) made a variety of changes to their respective statewide telemarketer restriction laws. Minnesota (SB 3246) and Oklahoma (SB 950) create statewide telemarketer restrictions. New Mexico SJM 4 requests a study of telemarketing practices in the interest of privacy protections. Vermont SB 62 establishes registration requirements for all telemarketers operating in the state.
Four states passed new laws expanding the definition of unfair trade or settlement practices. Georgia SB 505 defines the nonrenewal of an entire class of coverage by an insurer as an unfair method of competition. Nebraska L58 establishes that failure to promptly settle personal property claims from tornadoes, explosions, fires or wind represents an unfair claims settlement practice. South Carolina HB 3598 establishes that inducements made by vehicle glass repair shops in consideration for business represents an unfair trade practice and is categorized as a criminal offense. And, West Virginia HB 4469 establishes that failure to comply with the commissioner's privacy rules (regarding consumer financial and health information) represent violations of the state's Unfair Trade Practices Act.
Two states approved measures to further regulate arbitration proceedings. Utah SB 171 enacts the Uniform Arbitration Act to govern interpretation and enforcement of arbitration agreements. And, Washington SB 5373 establishes procedures for post-arbitration compromise offerings.
Uniform Commercial Code Changes
Two states approved uniform commercial code changes last year. Florida SB 1066 clarifies treatment of security interests in goods and fixtures under the uniform commercial code. And, Maryland SB 631 exempts claims for accidental injuries or occupational diseases or rights to benefits under special needs trusts from provisions governing the assignment of specific rights under Title 9 of the uniform commercial code.
The second most frequent issue trend emerging from the 2002 survey of new state laws is workers' compensation. Twenty-three different states enacted workers' compensation legislation last year. Several specific subcategories stand out as the most common themes. Most notable among these are seven states (California AB 749, Florida SB 108, Georgia HB 1155, Kansas HB 2729, Minnesota SB 3136, Tennessee SB 2414, and Wyoming SB 39) that each approved a variety of substantive and technical updates and clean-up changes to their workers' compensation chapters.
Five new workers' comp-related measures (Alaska HB 274, California SB 1907, North Carolina HB 1147, Oklahoma SB 883, and Tennessee SB 2898) address either general physician and hospital-specific regulatory requirements or more specific workers' compensation arrangements with doctors and hospitals. Three states (Florida HB 319, Kentucky HB 625, and Tennessee HB 2874) passed measures addressing workers' compensation self-insurance standards. Three others approved changes to their workers' compensation funds. Montana (SB 19) and Nebraska (L 1310) passed laws mandating a transfer of money from the workers' compensation fund to the state general fund, while Oklahoma passed SB 650 replacing references in the state's insurance laws to the State Insurance Fund with CompuSource Oklahoma.
Two states (California AB 1985 and AB 2192 and Massachusetts HB 5215) approved changes to provisions governing worker's compensation rating procedures and rating organization practices. Both California and Tennessee passed laws changing specific disability benefits, calculations or definitions. California AB 486 raises caps on the average weekly earnings used to compute benefits for the various disability categories, while Tennessee SB 277 changes various permanent partial disability benefit provisions.
Maine (HB 1568) and Oklahoma (HB 2752) both make changes to workers' compensation assessments. Kentucky approved two measures (HB 348 and HB 488) specific to pneumoconiosis benefits. Massachusetts (HB 4348) and Nebraska (L 417) passed new laws specifically related to workers' compensation coverage for directors and officers. And, New York approved a couple of measures extending benefits to surviving partners of victims of the 9/11 attacks.
In addition to the sub category trends enumerated above, several single state issues also surfaced. Arizona HB 2276 requires specification about whether loss adjustment expenses are to be treated as advancements. California AB 2816 requires temporary employment agencies to pay workers' comp premiums based on a contractor's experience rating and SB 2093 imposes a filing fee and security deposit on all workers' compensation insurers. Colorado SB 6 establishes procedures to determine coverage of public safety employees who have acquired hepatitis C during the course of employment. Maine SB 822 provides additional eligibility definitions for permanent impairment and threshold adjustments for related benefits. Maryland SB 371 phases-in a schedule for the Injured Workers' Insurance Fund to comply with excess capital requirements. North Carolina HB 1120 allows special deposits to provide for hardship payments under workers' compensation policies. Tennessee SB 1404 establishes injury notification requirements for cases involving gradual or cumulative events. Utah HB 192 changes computations for benefits applicable to volunteer safety officers, while SB 119 alters provisions governing the valuation of insurer liabilities for the purposes of determining the financial condition of workers' compensation insurers. Vermont HB 758 requires insurers to file first injury reports electronically by 7/1/04. Virginia HB 568 establishes the need for clear and convincing evidence in order to overcome a denial of benefits based on the presumption that an employee was intoxicated or using nonprescription drugs at the time of an injury or death. Washington HB 2663 expands the rebuttable presumption that respiratory diseases of firefighters are occupational in nature and include certain heart problems, cancer and infectious diseases. And finally, Wyoming SB 33 allows employers to request exclusion of extra hazardous employment classifications from workers' compensation coverage.
Miscellaneous New Insurance Laws
The last group of new property/casualty laws to emerge from this year's survey represent a collection of much more general issues that create a "catch-all" miscellaneous category. Twenty-eight laws enacted last year in 19 different states fall into this miscellaneous grouping.
Seven states (Florida HB 385, Iowa SB 2279, Minnesota HB 2988, Missouri SB 895, Nebraska L1139, New Hampshire SB 422, Oklahoma HB 2911, and Wisconsin SB 375) fall into this miscellaneous category by virtue of having approved assorted (technical and substantive) changes to their individual state insurance laws.
Four other states passed bills establishing additional insurer notification requirements. Connecticut HB 5641 requires policies to contain a notification statement that individuals over the age of 55 may designate a third party to receive cancellation and nonrenewal notices. Kentucky HB 473 requires insurers to notify the Commissioner of Agriculture at least 30 days in advance about cancellations of coverage for amusement rides. New Jersey SB 1097 requires notification about the availability of earthquake coverage by homeowners, commercial fire, and extended coverage insurers. And, South Dakota HB 1281 lengthens the period of notice for nonrenewal of commercial policies from 30 to 60 days.
Three states enacted legislation establishing prohibitions against certain actions. Colorado SB 007 bars insurers from refusing to accept or renew coverage for property within federal wildfire disaster areas. Kentucky HB 136 prohibits insurers from offering any form of inducement with a value greater than $25. And, Minnesota SB 2953 disallows property coverage in an amount greater than replacement costs.
The remainder of the new measures that fall into this miscellaneous grouping represent single state issues. The state of Michigan is notable among this last group, having approved three new miscellaneous laws. SB 496 requires non-domiciled insurers to designate resident agents for the service of legal documents. SB 674 establishes the self-evaluative audit privilege. And, SB 991 amends provisions governing eligibility requirements for auto and homeowners personal coverage.
Arizona approved two new laws that each fall into this miscellaneous category. SB 1015 amends surplus lines procurement-reporting requirements to require inclusion of the NAIC ID number, while SB 1016 changes the definition of insurance adjuster to exclude independent contractors retained for technical assistance.
The state of Washington also approved two other miscellaneous law changes. SB 6326 grants the commissioner authority to determine whether insurers with no data or loss experience must submit such reports, while SB 6526 provides additional circumstances wherein insurers are not required to renew policies.
Six other new state-specific miscellaneous property/casualty laws were approved last year. Florida SB 1126 creates the Insurance Policyholder Protection Act specifying commission payment and policy servicing procedures for the FWUA and RPCJUA and increasing the eligibility area for the FWUA. Illinois SB 1046 amends the Condominium Property Act to bar any such coverage that does not include property insurance, general liability and a fidelity bond and liability coverage for directors and officers. Minnesota SB 2592 authorizes the reorganization of mutual holding companies into stock companies. New York AB 11590 amends provisions related to the use of credit cards, debit cards and checking accounts for auto leases and rentals. South Dakota HB 1141 establishes utilization review standards applicable to property/casualty insurers. And finally, Virginia HB 199 establishes a procedure for policyholders to direct insurers to change the insurance agent of record.
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