News and Publications
Seminars and Services
Government Affairs
About NAMIC
|
|
Read
NAMIC 2004 Survey of New State Insurance Laws State List
Search by State
ALASKA
Guaranty Fund
SB 276
Increases assessments on member insurers, self-insured employers and joint insurance arrangements to make up for deficiencies in the Alaska Insurance Guaranty Association. Effective 6/16/04 (Section 2, effective 7/1/10). Chapter 61, Laws of 2004.
Motor Vehicle Insurance
(Traffic Safety - Graduated Drivers License)
HB 213
Provides criteria for the issuance of provisional drivers licenses to young drivers between the ages of 16-18 and sets forth related restrictions and prohibitions on the use of such licenses. Effective 1/1/05 - Effective 1/1/05. Chapter 165, Laws of 2004.
(UI/UIM - Limits on Damages)
HB 336
Limit the recovery of damages for noneconomic losses resulting from operating a motor vehicle while uninsured. Effective 10/24/04. Chapter 172, Laws of 2004.
Omnibus Insurance Law Changes
SB 357
Amends provisions pertaining to, among other things, workers' compensation, fraud, licensure standards, electronic transactions and surplus lines. Effective 7/1/04 (Section 18 effective 7/1/05). Chapter 96, Laws of 2004.
UETA
HB 285
Enacts the Uniform Electronic Transactions Act (UETA). Effective 7/1/04. Chapter 110, Laws of 2004.
Workers' Compensation
(Contractor Requirements)
SB 323
Requires general contractors to provide workers' compensation to cover employees of a subcontractor if the subcontractor fails to provide coverage. Effective 9/15/04. Chapter 80, Laws of 2004.
ARIZONA
Fire Insurance
(Arson)
SB 1242
Holds a person who is convicted of arson liable for the expenses incurred incident to the emergency response and investigation of the underlying offense. Effective 90 days after adjournment. Chapter 103, Laws of 2004.
Captives
HB 2235
Allows non-profit group insurers to form group and pure captive insurers. Signed by the Governor 4/1/04. Chapter 32, Laws of 2004.
CLUE
HB 2547
Prohibits insurers from considering as a claim any inquiry by an insured into whether a policy will cover a loss or about the type or level of coverage. Insurers are also prohibited from using the inquiry as a basis for declining, non-renewing or canceling insurance coverage or a binder of coverage. Furthermore, insurers are prohibited from informing an insurance support agency or a consumer reporting agency of the insured's inquiry. Effective 90 days after adjournment. Chapter 149, Laws of 2004.
Licensure
HB 2232
Amends various sections of Arizona law pertaining to producer licensing standards. Effective 90 days after adjournment and 12/31/04. Chapter 162, Laws of 2004.
Motor Vehicle Insurance
(Miscellaneous New Motor Vehicle Provisions - Coverage Factors - Definition of Accident)
SB 1241
Provides an amended definition of 'accident' for automobile insurance purposes and would provide rules governing choice of vendor and the recognition of assignments. Effective 90 days after adjournment. Chapter 226, Laws of 2004. Effective 90 days after adjournment. Chapter 226, Laws of 2004.
(Traffic Safety - DUI)
HB 2628
Allows the Arizona Department of Transportation Motor Vehicle Division (Department) to suspend a person's driver license for twelve months if the Department receives a report from an entity that installs or maintains ignition interlock devices (IIDs) that a person under an interlock requirement has tampered with, or circumvented the IID. Signed by the Governor 4/16/04. Chapter 97, Laws of 2004.
State Regulator
(Production of Claims Information)
HB 2224
Requires insurers to produce claim files or related papers upon request by the Director of Insurance (director). Effective 90 days after adjournment. Chapter 68, Laws of 2004.
Tort Reform
(Product Liability)
HB 2220
Provides an affirmative defense in product liability actions resulting from the consumption of food products. Effective 90 days after adjournment. Chapter 67, Laws of 2004.
(Frivolous Lawsuits)
SB 1113
Provides rules to curtail the filing of frivolous lawsuits against health care professionals and the filing of frivolous nonparty at-fault designations by health care professionals. Effective 90 days after adjournment. Chapter 4, Laws of 2004.
Workers' Compensation
(Benefits, Claims and Authorized Treatments - HIV/Hepatitus Claims)
HB 2399
Provides that any testing or prophylactic treatment for human immunodeficiency virus (HIV) or hepatitis C would qualify as a workers' compensation claim under certain circumstances. Effective 90 days after adjournment. Chapter 208, Laws of 2004.
(Fees)
HB 2438
Requires the Workers' Compensation Commission to create a fee schedule for prescription medicines required to treat injured employees. Effective 90 days after adjournment. Chapter 165, Laws of 2004.
(Miscellaneous New Workers' Compensation Provisions - Government Use of Social Security Numbers)
HB 2382
Limits governmental use of complete social security numbers. Provides for the use of social security numbers by governmental agencies to administer, among other things, workers' compensation matters. Signed by the Governor 4/23/04. Chapter 139, Laws of 2004.
CALIFORNIA
Fire Insurance
(Scope of Coverage)
AB 2199
Provides that the measure of indemnity under an open fire insurance policy that requires payment of the replacement cost is the amount it would cost the insured to repair, rebuild, or replace the damaged property without a deduction for physical depreciation or the policy limit, whichever is less. Effective 8/25/04. Chapter 311, Laws of 2004.
Fraud
AB 2866
Requires the Department of Insurance to post on its Internet Web site information relating to any case and defendant convicted of a violation of any insurance fraud provisions involving workers' compensation insurance, services or benefits. Effective 1/1/05. Chapter 281, Laws of 2004.
SB 1344
Adds workers' compensation insurance fraud investigations conducted by peace officers in the office of internal affairs of the department of corrections to investigations exempt from provisions regarding the disclosure of records. Effective 1/1/05.
Miscellaneous New Insurance Provisions
(Disclosure)
SB 1855
Requires insurers to include additional information about the insured property on the declarations page and include with the disclosure statement a copy of the California Residential Property Insurance Bill of Rights. Effective 1/1/05. Chapter 385, Laws of 2004.
(Surplus Lines)
AB 2490
Allows, until January 1, 2008, non-admitted insurers and surplus lines brokers selling personal lines insurance to immediately bind coverage for homeowners' insurance in the same way as non-admitted insurers and surplus lines brokers may currently do for commercial lines. Effective 1/1/05. Chapter 95, Laws of 2004.
Workers' Compensation
(Benefits, Claims and Authorized Treatments - Death Benefits)
AB 1840
Provides for the payment of $250,000 in death benefits to the estate of a deceased police officer who has no total dependents and no partial dependents for injuries occurring on or after January 1, 2003, but prior to January 1, 2004. Effective 1/1/05. Chapter 92, Laws of 2004.
(Miscellaneous New Workers' Compensation Provisions - Definitions)
AB 2649
Excludes from the definition of "employee," for workers' compensation purposes, any person who is an owner-builder who is participating in a mutual self-help housing program sponsored by a nonprofit corporation. Effective 1/1/05. Chapter 83, Laws of 2004.
COLORADO
CLUE
HB 1292
Restricts insurers from using certain negative factors in homeowners insurance rating and underwriting. Effective 8/4/04. Chapter 396, Laws of 2004.
Insurance Scoring
HB 1236
Requires insurers to provide notices to applicants for homeowners insurance, requires underwriting guidelines to be filed, and prohibits cancellation or nonrenewal on the basis of inquiries made about coverage. Effective 1/1/05. Chapter 398, Laws of 2004.
Motor Vehicle Insurance
(Abandoned/Salvage Vehicles)
HB 1062
Sets forth procedures for handling an abandoned motor vehicle, applicable to vehicles with appraised value of $2,000 or less. Effective 8/4/04.
(Miscellaneous New Motor Vehicle Insurance Provisions - Assignment of Benefits)
HB 1008
Permits a motor vehicle insurance policyholder to assign, in writing, payments due under the policy to a licensed hospital or health care provider for services rendered to the insured that are covered under the policy. Effective 4/5/04. Chapter 72, Laws of 2004.
(Cancellation, Denial, and Nonrenewal)
SB 26
Increases the time period in which the insurance commissioner must hold a hearing regarding a policyholder's protest of motor vehicle insurance cancellation from 30 to 45 days. Effective 7/1/04. Chapter 26, Laws of 2004.
(Coverage Factors - Domestic Accident Coverage)
SB 21
Requires motor vehicle collision insurance coverage to apply to an accident occurring within the U.S. or its territories or possessions and eliminates the requirement that coverage apply to accidents occurring within the Canadian provinces. Effective 1/5/04. Chapter 21, Laws of 2004.
(Coverage Factors - Optional/Enhanced Coverage)
HB 1232
Prevents an insurer offering motor vehicle coverage from automatically adding optional or enhanced coverages to a policy without the express consent of the insured. Effective 4/13/04. Chapter 151, Laws of 2004.
(Medical Payments)
HB 1026
Requires an insurer who offers med-pay coverage to offer a $5000 limit as one of its available options. Effective 7/1/04. Chapter 134, Laws of 2004.
HB 1114
Prohibits an auto insurer from reimbursing health care providers at different rates for the same services as well as precludes retroactive reimbursement adjustments after twelve months. Effective 1/1/05.
(Proof of Coverage)
HB 1042
Requires a motor vehicle registrant to demonstate proof of motor vehicle insurance at the time of registration. Effective 2/20/04. Chapter 5, Laws of 2004.
HB 1193
Increases the fines for operating a motor vehicle on a public highway without proof of insurance. Effective 5/20/04. Chapter 237, Laws of 2004.
Premium Tax
(Credits)
HB 1206
Creates an insurance premium tax credit for contributions to CoverColorado by an insurance company. Effective 3/4/04. Chapter 12, Laws of 2004.
SB 106
Creates venture capital premium tax credits, with a total value of $100 million to be taken by insurance companies at a rate of up to $10 million per year for calendar years 2005 to 2014. The premium tax credit allowed to certified investors who invest in certified capital companies on or after January 1, 2004, is repealed. Effective 3/4/04. Chapter 11, Laws of 2004.
Rate Regulation
SB 116
Mandates that workers' compensation insurance and medical benefit rates to take effect on December 1 and applications would need to be filed by August 1. Effective 8/4/04. Chapter 124, Laws of 2004.
State Regulator
HB 1154
Allows the division of insurance to contract for personal services in order to perform informal examinations, excluding formal financial or market conduct examinations, where the commissioner determines the department lacks sufficient skill and expertise to perform such investigations. Effective 3/8/04. Chapter 22, Laws of 2004.
Tort Reform
(Jury Duty)
HB 1159
Modifies the state's jury selection and service act.
Workers' Compensation
(Contractor Requirements)
HB 1090
Specifies criteria for an independent contractor who performs work on a private construction site and create a civil penalty for an independent contractor's failure to provide workers' compensation coverage to all of its employees. Effective 8/4/04. Chapter 25, Laws of 2004.
(Miscellaneous New Workers' Compensation Provisions - Negligence Actions)
HB 1068
Relates to actions for damages against the negligence of a stranger, which caused employee injury. Effective 8/4/04.
CONNECTICUT
Terrorism
HB 5200
Allows commercial insurers to exclude loss due to terrorism, as defined by the State Insurance Commissioner. Effective 7/1/04. Public Act No. 04-124, Laws of 2004.
Workers' Compensation
(Disputes and Settlements - Lump Sum Settlements)
HB 5340
Authorizes workers' compensation lump sum settlements to be prorated over the life expectancy of the injured worker. Effective 6/3/04. Public Act No. 04-124, Laws of 2004.
DELAWARE
Financial Regulation
(Asset Determination)
HB 272
Allows insurers to count goodwill as an asset in any determination of the financial condition. Effective 3/30/04. Chapter 214, Laws of 2004.
Motor Vehicle Insurance
(Traffic Safety - DUI)
HB 22
Revises sentencing guidelines driving-under-the-influence offenses and modifies conditions under which driver's licenses may be suspended and reinstated relative to those offenses. Effective 6/29/04. Chapter 285, Laws of 2004.
HB 111
Revises provisions addressing blood- and breath-alcohol levels related to driving-under-the-influence. Effective 7/12/04. Chapter 333, Laws of 2004.
(Traffic Safety - Seat Belt Enforcement)
HB 43
Stipulates that any occupant 16 years or older is required to wear a seatbelt, but failure to do so by more than one person in the same vehicle at the same time is not treated as a separate offense. Effective 6/30/04. Chapter 90, Laws of 2004.
Rate Regulation
(Auto)
HCR 40
Urges auto insurers to recognize the success of the state's driver education programs in lowering teen accident rates by reducing premiums. Effective 3/31/04.
FLORIDA
Financial Regulation
(Catastrophe Fund)
SB 2488
Amends the law governing the Florida Hurricane Catastrophe Fund. Effective 5/11/04. Chapter 27, Laws of 2004.
Guaranty Fund
HB 639
Revises the definition of a covered claim for the state's insurance guaranty association and the workers' compensation insurance guaranty association to exclude claims rejected in another state due to the insured's net worth being greater than what is allowable under the other state's guaranty fund. Effective upon Governor's approval on 5/21/04. Chapter Law 2004-89, Laws of 2004.
Premium Tax
(Local Taxing Jurisdiction)
HB 251
Directs the Department of Revenue to create a database that designates the local taxing jurisdiction in which each street address and address range in Florida is located and the appropriate code for each such participating local taxing jurisdiction. Effective 7/1/04. Chapter 2004-82, Laws of 2004.
Workers' Compensation
(Miscellaneous New Workers' Compensation Provisions - Non-Voluntary Market)
HB 1251
Amends the law governing the workers' compensation and employer's liability joint underwriting association. Effective 5/28/04. Chapter 266, Laws of 2004.
(Omnibus Workers' Compensation Law Changes)
SB 1926
Changes provisions in the state's workers' compensation laws pertaining specifically to notification requirements and rate approval. Requires the state to annually report on the status of the workers' compensation market. Effective 7/1/04. Chapter Law 2004-82. Laws of 2004.
GEORGIA
CLUE
HB 1263
Defines claim against a policy' to mean a contact with an insurer by the insured or an affected third party for the express purpose of seeking payment of proceeds under the terms of a policy of insurance against direct loss to residential real property and its contents. A report of loss or a question relating to coverage would not independently establish a claim against a policy. Effective upon approval by Governor or upon becoming law without such approval.
Motor Vehicle Insurance
(Traffic Safety - Child Safety Seats)
HB 217
Raises to seven years the age at which a child is no longer required to be seated in a special child restraint while in a motor vehicle. Sent to Governor 4/16/04.
(Miscellaneous New Motor Vehicle Insurance Provisions - Pre-payment of Motor Vehicle Premiums)
HB 1499
Lowers the mandatory period of pre-payment of motor vehicle insurance premiums to 30 days. If enacted, effective 7/1/04.
Terrorism
HB 1450
Amends the law relating to judicial proceedings in the event of a natural disaster, civil disturbance, or other emergency situation. Effective 5/13/04.
Tort Reform
(Appeal Bond)
SB 411
Allows the trial court to accept forms of security other than a supersedeas bond as a condition of staying a civil judgment during the appeal process. Effective upon approval by Governor or upon its becoming law without such approval.
Workers' Compensation
(Workers' Compensation Funds)
HB 1579
Specify that the Subsequent Injury Trust Fund may not reimburse any self-insured employer or insurer for a subsequent injury for which a claim is made for an injury occurring after June 30, 2008. If enacted, effective 7/1/04.
HAWAII
Telephone Sales
SB 2902
Prohibits sellers and telephone solicitors from initiating telephone solicitation calls to telephone numbers listed on the national Do-Not-Call registry. Effective 4/20/04. Act 8, Laws of 2004.
IDAHO
Financial Regulation
(NAIC Accounting Standards)
HB 497
Requires insurers to use the January 1, 2004, edition of the National Association of Insurance Commissioners' (NAIC) accounting practices and procedures manual, and any subsequent revisions to the manual, in completing financial reports to the Department of Insurance. Effective 7/1/04. Chapter 93, Laws of 2004.
(RBC)
HB 618
Amends the definition of 'property and casualty insurer' to exclude domestic reciprocal insurers with fewer than seven subscribers that: (1) insure only worker's compensation risk; and (2) only issue fully assessable policies. This exclusion exempts insurers with a very small number of subscribers from the requirement to file reports relating to their risk-based capital (RBC) status each year with the Department of Insurance and the National Association of Insurance Commissioners (NAIC). Effective 7/1/04. Chapter 255, Laws of 2004.
Guaranty Fund
HB 512
Allows a member of the Idaho Insurance Guaranty Association to offset the assessment imposed for its obligation to the association against its premium tax liability. Effective 3/23/04. Chapter 241, Laws of 2004.
Miscellaneous New Insurance Provisions
(Incorporation Requirements - Bylaws)
HB 499
Allows domestic stock insurers to amend their bylaws for any lawful purpose. Effective 7/1/04. Chapter 239, Laws of 2004.
(Incorporation Requirements - Certificate of Authority)
HB 491
Allows an insurer's certificate of authority to be suspended for an additional period upon expiration of the first suspension period. Effective 7/1/04. Chapter 88, Laws of 2004.
HB 492
Requires an insurer applying for an Idaho certificate of authority to submit 3 copies of its corporate charter, articles of incorporation or other charter documents and 3 copies of its bylaws to the department of insurance. Foreign insurers must submit only one copy of each. Effective 7/1/04. Chapter 89, Laws of 2004.
HB 493
Allows insurers to maintain the deposits required to obtain a certificate of authority to transact insurance in Idaho either in the insurer's state of domicile or in Idaho. This law also repeals the requirement that workers' compensation insurers maintain a special $25,000 deposit with the Idaho State Treasurer. Effective 7/1/04. Chapter 90, Laws of 2004.
(Deceptive Practices - Company Name)
HB 494
Prohibits an insurer from using a name deceptively similar to another insurer authorized to do business in Idaho or allowed to transact insurance in Idaho. This includes surplus lines insurers. Effective 7/1/04. Chapter 91, Laws of 2004.
(Surplus Lines)
HB 490
Requires surplus lines insurers to notify the director of the Department of Insurance of any change to the name of the insurer, its physical or mailing address, or its state of domicile, within 60 days of the change. Effective 7/1/04. Chapter 86, Laws of 2004.
(Organizational Structure - Mutual Holding Companies)
HB 481
Clarifies the use of tax deductions for dividends and distributions issued to holding companies by stock insurance subsidiaries. Effective 3/10/04, but Retroactively Applicable to 1/1/04. Chapter 30, Laws of 2004.
(NAIC Filing Requirements - Reinsurance)
HB 487
Deletes a provision of law that requires insurers to file reports regarding material acquisitions and dispositions of assets, or material nonrenewals, cancellations or revisions of ceded reinsurance agreements with the National Association of Insurance Commissioners (NAIC). Effective 7/1/04. Chapter 310, Laws of 2004.
Premium Tax
HB 724
Reduces the premium tax rate from 2.75% to 1.5% over a six-year period. Effective 7/1/04. Chapter 356, Laws of 2004.
State Building Codes
HB 756
Adopts the 2003 International Building Code, the 2003 International Energy Conservation Code, the 2003 International Mechanical Code and the 2003 International Fuel Gas Code. Effective 3/23/04. Chapter 272, Laws of 2004.
State Regulator
SJM 106
Announces the Legislature's commitment to maintaining the states as the sole regulators of the insurance business and opposition to any proposed federal law that undermines this state authority. Effective 2/25/04.
HB 495
Authorizes the Director of the Department of Insurance to direct the manner and place of filing for any document required to be filed with the department, including whether an electronic or paper filing is required or acceptable. Effective 7/1/04. Chapter 238, Laws of 2004.
Telephone Sales
HB 535
Provides that the national 'do-not-call' registry established and maintained by the Federal Trade Commission (FTC) may serve as the Idaho 'no telephone solicitation contact' list, and that Idaho's attorney general may provide the telephone numbers of Idaho residents that are on the Idaho 'no telephone solicitation contact' list to the FTC for inclusion in the national 'do-not-call' registry. Effective 7/1/04. Chapter 102, Laws of 2004.
Workers' Compensation
(Workers' Compensation Funds)
HB 488
Requires the insurance department to examine the State Insurance Fund every five years. Effective 7/1/04. Chapter 237, Laws of 2004.
HB 533
Extends provisions of law that require a claimant, employer/surety, or self-insured employer to provide materials for evaluation of the merits of the claim before filing a complaint for benefits from the Industrial Special Indemnity Fund. Effective 3/19/04. Chapter 100, Laws of 2004.
(Fees)
SB 1393
Authorizes a fee to be charged to community service workers for the purpose of providing them workers' compensation insurance. Effective 3/23/04. Chapter 149, Laws of 2004.
ILLINOIS
Motor Vehicle Insurance
(UI/UIM)
SB 2238
Amends uninsured and underinsured motorist laws by allowing insureds to reject additional uninsured motorist coverage in excess of state law by making a written request for limits that are less than bodily injury liability limits or by rejecting in writing limits that are greater than what the law calls for. And, by eliminating a provision specifying the maximum payable by the underinsured carrier may not exceed the amount by which the limits of the underinsured coverage exceeds the limits of bodily injury liability coverage insurance of the owner of the underinsured motor vehicle. Effective 7/16/04. Act 93-762, Laws of 2004.
Tort Reform
(Common Sense Consumption)
HB 3981
Creates the Common Sense Consumption Act prohibiting the initiation of a civil liability action against sellers of qualified products. Effective 6/1/04.
INDIANA
Financial Regulation
(Investments)
HB 1150
Allows domestic property and casualty insurers to invest up to 10% of their assets in asset-backed securities. Effective 7/1/04. Public Law 40, Laws of 2004.
Licensure
HB 1005
Exempts certain individuals from insurance producer licensure and establishes education requirements for title insurance producers. Effective 7/1/04. Public Law 64, Laws of 2004.
Motor Vehicle Insurance
(Traffic Safety - Child Safety Seats)
HB 1098
Amends provisions regarding child restraint systems in motor vehicles. Effective 7/1/04. Public Laws 67, Laws of 2004.
(Traffic Safety - DUI)
HB 1264
Amends provisions regarding ignition interlock devices. Effective 7/1/04. Public Law 76, Laws of 2004.
HB 1394
Classifies various offenses of driving while intoxicated and causing death. Effective 7/1/04. Public Law 82, Laws of 2004.
IOWA
Insurance Scoring
SB 2257
Adopts language similar to the NCOIL model relative to the use of credit information by property and casualty insurers for underwriting or rating purposes. Effective 7/1/04.
Miscellaneous New Insurance Provisions
(Allowable Contributions)
HB 2318
Broadens current law to allow any insurance company, savings and loan association, bank, credit union or corporation to make, solicit, or receive contributions used for certain non-candidate types of activity. Effective 7/1/04.
Motor Vehicle Insurance
(Miscellaneous New Motor Vehicle Insurance Provisions - Disclosure)
SB 2253
Amends disclosure requirements relative to the transfer of ownership of a motor vehicle. Effective 7/1/04.
State Regulator
(Medical Malpractice)
SR 164
Requests the insurance commissioner to submit annual reports containing administrative and financial information pertaining to medical malpractice claims. Effective 4/13/04.
Tort Reform
(Product Liability)
HB 2170
Provides that an assembler, designer, supplier of specifications, distributor, manufacturer, or seller is not liable for failure-to-warn claims in product liability actions for generally known product risks. Effective 7/1/04.
(Appeal Bond)
SB 2306
Limits civil action appeal bonds to $100 million. Effective 4/20/04. Chapter 1093, Laws of 2004.
KANSAS
Motor Vehicle Insurance
(Proof of Coverage)
HB 2545
Authorizes the commissioner to require, by rules or regulation, all motor vehicle liability insurers to provide electronic verification of insurance. Effective upon statutory publication. Chapter 128, Laws of 2004.
(Miscellaneous New Motor Vehicle Insurance Provisions - Accident Reporting)
HB 2563
Increases, from $500 to $1000, the minimum apparent financial damage to person or property in a motor vehicle accident which requires a person to give notice of such accident, for all accidents occurring on and after January 1, 2005. Effective upon statutory publication. Chapter 133, Laws of 2004.
Omnibus Insurance Law Changes
HB 2597
Amends and enacts various insurance laws pertaining to errors and omissions, licensing, surety contracts, foreign language policies and title insurance. Effective upon statutory publication. Laws of 2004.
Premium Tax
(Fire Marshal Levy)
SB 312
Limits the state fire marshal levies to less than .80% for calendar year 2004 and subsequent years and require insurance companies to contribute to the fire service training program. Effective upon statutory publication. Chapter 49, Laws of 2004.
Tort Reform
(Class Action Certification)
HB 2764
Allows a court of appeals discretion to permit an appeal from a district court order granting or denying class action certification if such application were made within 10 days of entry of the order. Effective upon statutory publication. Laws of 2004.
KENTUCKY
Financial Regulation
(Insolvency/Liquidation)
SB 171
Amends the laws governing treatment of credits allowed in the event of the insolvency of a ceding insurer. Effective 90 days after adjournment. Chapter 125, Laws of 2004.
Motor Vehicle Insurance
(Proof of Coverage)
HB 29
Requires every insurance company that writes liability insurance on personal motor vehicles in Kentucky to send to the Department of Vehicle Regulation, on a monthly basis, a list of the vehicle identification numbers of each personal motor vehicle covered by liability insurance issued by the insurer as of the last day of the preceding month and the name of each personal motor vehicle insurance policyholder.
Omnibus Insurance Law Changes
SB 177
Amends the laws governing financial statements; assets and liabilities; reserves; fire loss reporting; and, transfer of domicile. Effective 90 days after adjournment. Act 24, Laws of Kentucky.
Premium Tax
HB 19
Specifies that premium-based license fees or taxes imposed by local governments do not apply to premiums paid to insurers of municipal bonds, leases, or other debt instruments issued by or on behalf of a city, county, charter county government, urban-county government, consolidated local government, special district, nonprofit corporation, or other political subdivision of Kentucky. Effective 90 days after adjournment.
LOUISIANA
FAIR Plans
HB 423
Changes from September 30 to December 31 the end of the fiscal year for the Coastal and Fair plans. Effective 5/21/04. Act No. 46, Laws of 2004.
HB 752
Deletes farmowners' multiperil insurance from the Louisiana Citizens Property Insurance Corporation. Effective 7/27/04. Act No. 106, Laws of 2004.
Fire Insurance
(Standard Fire Policy)
SB 540
Provides that the standard fire policy form required by law would not need to be used if the policy forms covering the 'peril of fire' offer the same or more provisions than the standard. Effective 7/20/04. Act No. 34, Laws of 2004.
Fraud
HB 350
Changes the termination date of insurance fraud investigation unit from 2004 to 2008.
Guaranty Fund
HB 1051
Requires, in personal injury or death suits resulting from asbestos exposure or environmental pollutants, claimants to first exhaust all available insurance prior to recovery against the association, even if an insolvent insurer provided the only coverage for one or more policy periods of the alleged exposure, and to satisfy proper personal jurisdiction. Effective 7/27/04. Act No. 108, Laws of 2004.
HB 1052
Provides for recovery of costs incurred by the insurance guaranty association in defense of a claim. Effective 7/27/04. Act No. 109, Laws of 2004.
Rate Regulation
HB 1514
Would vest exclusive authority with the office of property and casualty to accept, review, and approve any application for insurance rates or rate changes for all lines of commercial property and casualty insurance. Effective 1/1/05. Act No. 878, Laws of 2004.
Telephone Sales
HB 189
Exempts periodic follow-up or general wellness calls from optometrists, dentists, and physicians, or representatives thereof, to patients from the 'do not call' law. Effective 8/9/04. Act No. 148, Laws of 2004.
Workers Compensation
(Disputes and Settlements)
HB 823
Allows disputes between a single health care provider and a single payor to be consolidated, providing proper venue in the workers' compensation district in the parish of domicile of either the payor or the provider. Effective 6/15/04. Act No. 257, Laws of 2004.
HB 825
Clarifies that prior written approval from the Second Injury Board must be obtained prior to a settlement being submitted to the workers' compensation court for approval. Effective 6/15/04. Act No. 258, Laws of 2004.
MAINE
CLUE
SB 692 (LD 1853)
Would restrict the conditions under which insurers could refuse to underwrite or renew property insurance policies. Effective 90 days after adjournment of second special session. Public Law 671, Laws of 2004.
Miscellaneous New Insurance Provisions - Cancellation
SB 692
Amends the law governing the conditions under which personal lines insurers may cancel personal lines property insurance policies. The Act also authorizes the establishment of a mandatory property and casualty insurance market assistance program. Effective 8/5/04. Public Law 671.
State Building Codes
SB 356 (LD 1025)
Establishes the Office of Building Codes within the Maine Department of Professional and Financial Regulations in order to oversee efficient building construction and to ensure compliance with the Uniform Code. Effective 90 days after adjournment of second special session. Public Law 580, Laws of 2004.
MARYLAND
Financial Regulation
(Impaired Insurer)
HB 533
Amends the definition of "impaired insurer" as it applies to stock insurers and mutual insurers. An impaired insurer is one whose assets, less all liabilities and required reserves, do not equal or exceed the surplus required to engage in insurance business as a stock insurer or mutual insurer. Effective 10/1/04. Chapter 49, Laws of 2004.
Fraud
SB 639
Requires the Insurance Fraud Division of the Maryland Insurance Administration to notify the Workers' Compensation Commission of certain suspected cases of insurance fraud involving workers' compensation benefits or related expenses. Effective 10/1/04. Chapter 471, Laws of 2004.
Insurance Scoring
SB 101
Repeals the sunset provision in a law allowing the use of credit history in issuing private passenger motor vehicle insurance policies. Effective 10/1/04. Chapter 91, Laws of 2004.
Workers' Compensation
(Benefits, Claims and Authorized Treatments)
HB 776
Provides workers' compensation benefits for Montgomery County deputy sheriffs. Effective 10/1/04. Chapter 203, Laws of 2004.
MASSACHUSETTS
FAIR Plans
HB 4672
Establishes the property insurance underwriting association rating procedure for homeowners insurance for large share territories. Effective 3/22/05. Chapter 436, Laws of 2004.
Fire Insurance
(Tenant Relocation Expenses)
HB 1879
Amends the definition of relocation expenses for tenants displaced by fire damage. Prevents tenants from receiving security deposit from both landlord and insurance company. Effective 3/22/05. Chapter 435, Laws of 2004.
Fraud
Massachusetts Chapter 464
Establishes tougher penalties for injury claims fraud as well as tighter licensing and enforcement standards for certain health care workers. Approved 1/3/05.
Miscellaneous New Insurance Provisions
(Group Marketing Plans)
HB 4808
Amends provisions regarding approval of group marketing plans for motor vehicle and homeowners insurance. Effective 12/22/04. Chapter 442, Laws of 2004.
(Liquor Liability)
HB 1881
Addresses current authority dealing with the Joint Underwriting Association's issuance of insurance policies with respect to liquor legal liability. The Act changes the coverage limits from "limits specified in the plan of operation, but not to exceed five hundred thousand dollars for each claimant under one policy and one million dollars for all claimants under one cause of action" to "limits as approved by the Commissioner of Insurance." Effective 10/6/04. Chapter 166, Laws of 2004.
Rate Regulation
HB 1700
Mandates that statutory requirements for the regulation of policy forms and the filing and approval of rates do not apply to insurance contracts for large commercial policyholders. Effective 9/24/04. Chapter 435, Laws of 2004.
HB 4675
Regulates the setting of private passenger automobile insurance rates. Effective 10/26/04. Chapter 213, Laws of 2004.
MICHIGAN
Miscelaneous New Insurance Provisions
(Demutualization - Unclaimed Property)
SB 1013
Subjects property unclaimed in conjunction with an insurance company demutualization to a two-year escheat. Effective 3/22/04, Public Act 82, Laws of 2004.
Motor Vehicle Insurance
(Repair Claims/Shops)
HB 4127
Prohibits insurers from unreasonably restricting an insured from using a particular auto or auto glass repair shop. Effective 7/8/04. Public Act No. 190, Laws of 2004.
Tort Reform
(Common Sense Consumption)
HB 5809
Exempts food manufacturers, packers, distributors, carriers, holders, sellers, marketers, promoters and advertisers for claims resulting from weight gain, obesity or related health condition. Effective 90 days after legislature adjourns. Act 367, Laws of 2004.
MINNESOTA
Fraud
HB 2640
Creates a Division of Insurance Fraud Prevention and requires each insurer to pay an assessment to fund the insurance fraud prevention account. Effective 5/30/04. Chapter 269, Laws of 2004.
Tort Reform
(Appeal Bonds)
HB 1425
Provides that execution of a judgment for payment of money is stayed during the course of appeal if the judgment debtor files a bond in the amount of the judgment. Previous law provided for a stay of six months and set the bond amount at double the judgment. The total bond required is capped at $150 million, regardless of the value of the judgment. If a creditor provides evidence that a debtor is dissipating assets to avoid paying a judgment, the court may require a bond in the amount of the judgment. Effective 5/14/04. Chapter 180, Laws of 2004.
MISSISSIPPI
Fire Insurance
(Scope of Coverage)
SB 2450
Expands the scope of industrial fire coverage to include personal or real losses tied to burglary or theft. Caps the limits of risk for all such industrial fire policies at $20,000. Effective 7/1/04.
Miscellaneous New Insurance Provisions
(Asbestos Claims)
HB 1517
Specifies that the cumulative successor asbestos-related liabilities of a corporation are limited to the fair market value of the total gross assets of the corporation from which successor asbestos-related liabilities are or were assumed or incurred as of the time of the merger or consolidation. Effective 4/20/04.
Tort Reform
(Comprehensive Reform Addressing - Noneconomic Damages, Product Liability, Punitive Damages, Joint and Several Liability, and Jury Duty)
MISSOURI
Motor Vehicle Insurance
(Salvage)
SB 1233
Amends provisions regarding salvage vehicles, towing companies and commercial driver licenses, and regulate the sale of motor vehicle extended service contracts.
Omnibus Insurance Law Changes
SB 1299
Amends the Property and Casualty Insurance Guaranty Association Act, provide that an automobile insurance policy with no fixed expiration date would be considered a six-month policy, repeal the bond requirement for a surplus lines license, and raise the liability limit on residential insurance policies issued under the FAIR plan from $100,000 to $200,000. Effective 8/28/04.
NEBRASKA
Miscellaneous New Insurance Provisions
(Regulations for Specific Coverages)
L 845
Provides that if the real estate commission cannot obtain errors and omissions insurance to cover all licensees who choose to participate in the group program at a reasonable premium not to exceed $500, the errors and omissions insurance requirement does not apply during the year for which coverage cannot be obtained. Effective 7/15/04.
Motor Vehicle Insurance
(Traffic Safety - Seatbelt Enforcement)
L 227
Requires all children between six and 18 years of age to wear a seat belt that meets Federal Motor Vehicle Safety Standards as of January 1, 2004. Effective 7/15/04.
(Proof of Coverage)
L 911
Allows for the electronic transmission of a certificate of proof of financial responsibility. Effective 3/19/04.
State Building Codes
L 888
Updates references to the 2003, instead of 2000, edition of the International Energy Conservation Code for new state buildings, or renovations of or additions to any existing buildings, on which construction is initiated on or after July 1, 2005. Effective 7/1/05.
Workers' Compensation
(Workers' Compensation Funds)
L 1091
Specifies that the Workers' Compensation Trust Fund will be administered by the Nebraska Workers' Compensation Court, and makes technical changes to the Nebraska Workers' Compensation Act. Effective 4/13/04.
NEW HAMPSHIRE
Guaranty Fund
SB 367
Establishes the New Hampshire Guaranty Association Act. Effective 8/7/04. Chapter 197, Laws of 2004.
Miscellaneous New Insurance Provisions
(Regulations for Specific Lines)
SB 368
Amends current reinsurance law to conform to the National Association of Insurance Commissioner's (NAIC) credit for reinsurance model law. Effective 8/1/04. Chapter 186, Laws of 2004.
Motor Vehicle Insurance
(Miscellaneous New Motor Vehicle Insurance Provisions - Cancellation, Nonrenewal and Denial)
SB 371
Provides changes to laws governing denial of coverage, pre-existing conditions, and physician licensure standards for medical reviews. Effective 8/1/04. Chapter 187, Laws of 2004.
Rate Regulation
SB 370
Changes insurance rating laws and requires title insurance companies to file a schedule of fees or premium rates with the state insurance commissioner. Effective 7/30/04. Chapter 156, Laws of 2004.
State Regulator
SB 369
Amends state laws regarding the conduct of examinations by the insurance department to conform to the National Association of Insurance Commissioners (NAIC) model. Effective 1/1/05. Chapter 155, Laws of 2004.
SB 430
Authorizes the commissioner to contract for external review and evaluation of mandated benefits, including workers' compensation, and requires that, if requested by a standing committee, any legislative proposal that mandates insurance benefits be evaluated by the insurance department before being enacted into law. Effective 5/24/04. Chapter 161, Laws of 2004.
Workers' Compensation
(Disputes and Settlements)
SB 423
Exempts records and proceedings of the New Hampshire Department of Labor from the Right-To-Know Law (RSA 91-A) in regards to workers' compensation claims. Effective 6/11/04. Chapter 223, Laws of 2004.
SB 431
Prohibits provisions in any agreement from requiring employers or their insurance carriers to waive subrogation rights. Effective 3/5/04. Chapter 3, Laws of 2004.
NEW JERSEY
Guaranty Fund
(Property/Liability)
SB 702
Makes revisions to the state's Property Liability Insurance Guaranty Association Act, many of which bring it closer to the provisions of the National Association of Insurance Commissioner's Post-Assessment Property and Liability Insurance Guaranty Association Model Act. Effective 12/22/04. Chapter 175, Laws of 2004.
(Surplus Lines)
SB 1581
Makes various revisions to the state's Surplus Lines Insurance Guaranty Fund Act many of which bring it closer to the provisions of the National Association of Insurance Commissioner's Post-Assessment Property and Liability Insurance Guaranty Association Model Act. Effective 10/7/04. Chapter 165, Laws of 2004.
Motor Vehicle Insurance
(Traffic Safety - DUI)
AB 1630
Requires prosecutors to determine whether persons charged with drunk driving or refusal to consent to breathalyzer tests are repeat offenders. Effective 10/1/04. Chapter 95, Laws of 2004.
(Traffic Safety - DUI)
AB 2259
Clarifies and revises drunk driving penalties and fines. Effective 4/26/04. Chapter 8, Laws of 2004.
(Traffic Safety - Unsafe Driver Surcharge)
AB 3109
Revises the surcharge provisions for unsafe driving by increasing the surcharge from $100 to $150 for drivers with six or more penalty points over the past three years. Effective 6/30/04. Chapter 70, Laws of 2004.
(Traffic Safety - Unsafe Driving Surcharge)
AB 3114
Requires courts to assess persons found guilty of unsafe driving offenses a surcharge of $250. Effective 7/1/04. Chapter 69, Laws of 2004.
(Recreational Vehicles - DUI Boating)
SB 1511
Revises drunk boating laws to conform to new standards and to impose sanctions consistent with such law. Effective 7/2/04. Chapter 80, Laws of 2004.
Premium Tax
(Credits)
AB 3111
Creates incentives for business relocation and retention including insurance premium tax credits. Effective 6/30/04. Chapter 65, Laws of 2004.
Workers' Compensation
(Coverage for Thoroughbred Horse Riders)
AB 2895
Extends workers' compensation coverage secured by the New Jersey Horse Racing Injury Compensation Board to thoroughbred horse exercise riders while working at racetracks in the state. Effective 8/8/04. Chapter 119, Laws of 2004.
(Resolution)
AR 73
Encourages Congress to amend the Social Security Act to ensure the 80% limit on total combined social security and workers' compensation benefits for disabled workers be based on pre-injury earnings adjusted for inflation. Effective 6/10/04.
NEW MEXICO
Motor Vehicle Insurance
(Traffic Safety - DUI)
SB 144
Lowers the DWI threshold and increases mandatory penalties upon conviction for commercial drivers. Effective 3/2/04. Chapter 42, Laws of 2004.
State Regulator
HB 240
Creates an insurance operations fund in the state treasury to appropriate to the division funds necessary to carry out its responsibilities under the Insurance Code and other applicable laws, with any remaining fiscal year balance greater than one-half of the appropriation reverting to the general fund. Effective 5/19/04. Chapter 5, Laws of 2004.
Tort Reform
(Judgment Interest)
SB 625
Permits a two percentage points above prime, as published in the Wall Street Journal on the date of entry, interest rate on judgments against a governmental entity or public employee for a tort for which immunity has been waived under the Tort Claims Act. Effective 7/1/04. Chapter 108, Laws of 2004.
Workers' Compensation
(State Oversight - Ombudsman)
SB 30
Reduces the time period an ombudsman is ineligible to hold another position within the administration from five years to one year. Effective 7/1/04. Chapter 118, Laws of 2004.
(Miscellaneous New Workers' Compensation Provisions - Employer Assessments)
SB 74
Increases the assessments against employers under the Workers' Compensation Act from $2.00 to $2.30 per covered employee, with $0.30 of the fee per employee distributed to the uninsured employers' fund. Effective 7/1/04. Chapter 36, Laws of 2004.
NEW YORK
FAIR PLANS
SB 7576
Extends the New York Property Insurance Underwriting Association and certain provisions pertaining to the temporary panel on homeowners insurance coverage. Effective 6/28/04. Chapter 121, Laws of 2004.
Insurance Scoring
SB 5618
Regulates the use of credit information by personal lines insurers based on the model law developed by the National Conference of Insurance Legislators (NCOIL). Effective 4/23/05. Chapter 215, Laws of 2004.
Miscellaneous New Insurance Provisions
(Involuntary Unemployment Insurance)
SB 6546
Defines involuntary unemployment insurance and includes it as a line authorized for sale by licensed P/C insurers in New York. Effective 9/9/04. Chapter 326, Laws of 2004.
(Financial Guaranty Insurance)
SB 6679
Amends financial guaranty insurance laws to add provisions for credit default swaps. Effective 10/19/04. Chapter 605, Laws of 2004.
Motor Vehicle Insurance
(Insurance Verification Requirements)
SB 5120
Establishes insurer verification responsibilities with the Department of Motor Vehicles. Effective 7/20/04. Chapter No. 161, Laws of 2004.
(Traffic Safety - Child Safety Seats)
AB 996
Provides that both back seat and front seat passengers ages four to seven years old must be restrained in appropriate child restraint systems specially designed to meet federal motor vehicle safety standards. Back seat passengers between the ages eight to sixteen, must be restrained in a safety belt approved by the Commissioner. Effective 3/25/04. Chapter 409, Laws of 2004.
NORTH CAROLINA
CLUE
SB 486
Prohibits insurance companies from terminating a policy based an inquiry about policy provisions or a claim that was closed without payment. Effective 10/1/04. Session Law 111.
OHIO
Miscellaneous New Insurance Provisions
(Medical Malpractice Requirements)
SB 187
Establishes 60 day notification requirements for cancellation or rate increases and 120 days notice to the department of insurance for companies intending to stop medical malpractice coverage of a specialty or geographic area. Effective 9/13/04.
(Mutual Insurance Company Property Liens)
HB 301
Limits the duration of mutual insurance company's liens on property it insures to five years from the date of filing. Effective 7/14/04.
Motor Vehicle Insurance
(Proof of Coverage)
HB 139
Specifies that policies under the Financial Responsibility Law remain subject to their terms and conditions. Effective 2/12/04. Session Law 36, Laws of 2004.
(Salvage Vehicles)
HB 230
Modifies requirements relative to salvage certificates of title and revises other motor vehicle provisions. Effective 9/16/04. Session Law 106, Laws of 2004.
Telephone Sales
SB 28
Prohibits sellers from engaging in activities that violate federal telemarketing laws and authorizes the Attorney General to enforce state and federal telemarketing laws and conduct investigations. Effective 4/12/04. Session Law 54, Laws of 2004.
Tort Reform
(Judgment Interest)
HB 212
Establishes criteria for computing interest on judgments. Effective 6/2/04.
(Asbestos Claims)
HB 292
Establishes minimum medical requirements for filing certain asbestos claims and limits asbestos-related successor liabilities for corporations. Effective 9/2/04.
(Silica and Mixed Dust Disease Claims)
HB 342
Establishes minimum medical requirements for filing certain silica and mixed dust disease claims. Effective 9/1/04.
(Comprehensive Tort Reform)
SB 80
Amends state law to affect wide spread tort reform including instituting limitations on punitive and noneconomic damages, a statute of repose on product liability actions, collateral source rule, common sense consumption. Effective 1/6/05.
OKLAHOMA
CLUE
HB 2324
Prohibits an insurer from increasing premium rates, canceling a policy, or refusing to issue or renew a policy on the basis of a policyholder inquiring about making a claim, if such policyholder does not in fact submit a claim. Effective 11/1/04. Laws of 2004.
Financial Regulation
(Insolvency/Liquidation)
SB 1411
Changes the definition of insolvent from "net assets exceeding total liabilities" to "total liabilities exceeding total assets". Effective 4/27/04. Chapter 169, Laws of 2004.
Licensure
HB 2385
Makes nonsubstantive changes to insurance related statutes, and decreases the insurance producer licensing exam retest time from 6 months to 30 days. Effective 5/10/04. Chapter 274, Laws of 2004.
Miscellaneous New Insurance Laws
(Organizational Structure)
SB 1483
Clarifies that property distributable in the course of a demutualization or related insurance company reorganization is deemed to be abandoned after two years from the date of demutualization if no further communication was evidenced, despite best efforts to distribute the instruments or statements to the holder. Effective 7/1/04. Chapter 318, Laws of 2004.
(Regulations for Specific Lines - Farm Coverage/Regulation)
HB 1839
Expands the class of resident farmers that can associate for rural property self-insurance from class 7 towns with 4,000 person populations or less to class 6 towns with 6,000 person populations or less. Effective 11/1/04. Chapter 21, Laws of 2004.
Mold
HB 2554
Prevents any one person from performing both mold assessment and mold remediation on the same property unless the total cost of services is less than $200. Effective 7/1/04. Laws of 2004.
Motor Vehicle Insurance
(Miscellaneous New Motor Vehicle Insurance Provisions - Cancellation and Nonrenewal)
HB 2668
Prohibits a motor vehicle insurer from canceling, refusing to issue or renew, or charging a higher premium for any liability or collision insurance policy on the basis that the insurer had lower liability limits with a previous insurer without actuarial justification, including using prior limits for company or tier placement unless the insurer provides actuarial justification. Effective 11/1/04. Chapter 96, Laws of 2004.
(UI/UIM)
HB 2549
Expands the class of policies to which uninsured motorist coverage does not apply to include any other commercial automobile liability policy where the named insured has employees. Effective 11/1/04. Chapter 267, Laws of 2004.
Omnibus Insurance Law Changes
HB 2141
Amends provisions pertinent to the above referenced insurer groups. Effective 5/25/04. Chapter 334, Laws of 2004
Rate Regulation
HB 2470
Would implement a 'file and use' rating system for all lines of insurance except workers' compensation. Effective 11/1/04. Chapter 519, Laws of 2004.
Tort Reform
(Comprehensive Reform)
HB 2661
Enacts comprehensive set of tort reform measures. Effective 7/1/04 and 11/1/04. Laws of 2004.
PENNSYLVANIA
Financial Regulation
(Investments)
SB 1096
Establishes provisions regarding surplus notes, advances to insurance companies and guidelines for eligible investments. Effective 11/30/04 and 1/14/05. Act 216, Laws of 2004.
Miscellaneous New Insurance Provisions
(Manufactured Housing)
HB 1929
Establishes provisions governing the installation of manufactured housing, including building and constructioni code compliance. Effective 11/29/04. Act 158, Laws of 2004.
Motor Vehicle Insurance
(Traffic Safety - Careless Driving and School Zone Speed Limits)
HB 873
Establishes new provisions relative to penalties for careless driving and school zone infractions. Effective 2/6/05. Act 237, Laws of 2004.
(Traffic Safety - Child Safety Seats)
HB 1130
Reduces the number of days that a person must hold a learner's permit before they can obtain a commercial driver's license and modifies child booster seat provisions. Effective 9/13/04. Act 75, Laws of 2004.
(Traffic Safety - DUI)
HB 2396
Makes driving under the influence or drugs or alcohol a criminal and personal injury crime and revises timeframe upon which claims based on related injuries may be filed. Effective 1/18/05. Act 103, Laws of 2004.
(Traffic Safety - DUI)
SB 133
Revises penalties related to driving under the influence of drugs and alcohol. Effective 11/29/04. Act 177, Laws of 2004.
State Building Code
SB 1139
Revises various sections of the Pennsylvania Construction Code Act. Effective 7/15/04. Act 92, Laws of 2004.
Tort Reform
(Asbestos Claims)
SB 92
Modifies applicability of certain asbestos-related claims based on a two-year statute of limitations. Effective 11/24/04. Act 152, Laws of 2004.
Workers' Compensation
(Legislative Study)
HR 660
Directs the Legislative Budget and Finance committee to study the state's workers' compensation system relative to other nearby states and make recommendations for lowering medical and indemnity and litigation costs, streamline claims processes, and control prices. Effective 6/15/04.
RHODE ISLAND
Fire Insurance
(Arson)
HB 7194
Repeals provisions requiring fire insurers to obtain an anti-arson application as a prerequisite to writing a policy. Effective 9/1/05. Public Law 52, Laws of 2004.
(Cancellation and Notification)
SB 2817
Increases the number of days to issue written cancellation notice on fire insurance policies from five (5) to thirty (30) days, except for cancellation due to nonpayment of premium for which ten (10) days written notice is required. Prompt refund of excess premium, rather than refund on demand, is also required. Effective 6/23/04. Public Law 138, Laws of 2004.
(Standard Fire Policy)
HB 8438 (SB 3057)
Amends the commercial deregulation statute to exempt certain commercial special risk policies from standard fire insurance policy requirements. Effective 7/6/04.
Licensure
SB 2688
Abrogates statutory pre-licensing requirements for property, casualty, and other insurance producers. Those requirements are replaced with a general provision allowing the insurance commissioner to promulgate reasonable rules and regulations for insurance producer licensing in accordance with Rhode Island law. Effective 6/9/04. Public Law 43, Laws of 2004.
Mold
SB 2772
Extends the reporting date of the Special Senate Commission to study the health effects of toxic mold and to make recommendations for related public safety measures to be undertaken. Effective 3/24/04. Resolution 145, Laws of 2004.
Motor Vehicle Insurance
(Miscellaneous New Motor Vehicle Insurance Provisions - Rental Coverage)
SB 2106
Requires that rental vehicle coverage be provided under the property damage liability section of an insured's private passenger automobile insurance policy. This coverage applies to rented motor vehicles under ten thousand (10,000) lbs, without regard to negligence, for up to a forty-five (45) day consecutive period. Effective 6/11/04. Public Law 59, Laws of 2004.
(Vehicle Owner Liability)
HB 7710
Amends applicability provisions and repeals the sunset provisions of the general motor vehicle laws that relate to the liability of a vehicle owner for others' safety responsibility violations. Effective 6/30/04. Public Law 219, Laws of 2004.
(Proof of Coverage)
HB 8237
Requires that any proof of insurance state the insured's right to choose any qualified auto repair facility and would provide a complaint procedure through the Department of Business Regulation for alleged violations of the provision. Effective 7/7/04. Public Law 488, Laws of 2004.
Rate Regulation
HB 8042
Permit insurers to adjust insurance rates by five percent (5%) without the Insurance Commissioner's approval at the onset of a new policy period for policies covering losses or liabilities for motor vehicles used predominantly for nonbusiness purposes and for nonbusiness fire or marine losses or liabilities. Effective 7/7/04.
Workers' Compensation
(Miscellaneous New Workers' Compensation Provisions - Filing of Petitions)
HB 7870
Prohibits a petition for workers' compensation benefits from being filed while a nonprejudicial memorandum of agreement is pending or until after the notification that payments have been terminated. Effective 7/2/04.
(Medical Exam Requirements)
HB 7872
Requires workers' compensation claimants to submit to reasonable examination(s) by a qualified healthcare provider appointed by the director in order to determine the claimant's physical and/or mental condition. Effective 7/7/04. Public Law 471, Laws of 2004.
SOUTH CAROLINA
Captives (and Licensure)
HB 5002
Provides for confidentiality of information submitted by Captive insurers and changes other provisions of the laws regulating Captive insurers. (Amends laws governing producer licensure requirements to provide certain individuals with licensing examination exemptions.) Effective 7/29/04. Act No. 291, Laws of 2004.
Mold
SB 949
Specifies that no cause of action may be brought against a real estate licensee acting as a seller's or buyer's agent, or advising an individual outside an agency relationship, who has truthfully disclosed to the seller, buyer or customer, respectively, any known material defects. Effective 1/1/05. Act 218, Laws of 2004.
Premium Tax
(Credits)
SB 516
Amends the definition of 'new job' as it relates to the job tax credit allowed against premium tax obligations and amends the law governing paid-in capital surplus. Various Effective Dates - please refer to the complete text. Act 168, Laws of 2004.
Rate Regulation
SB 686
Would deregulate personal lines rates. Sent to the Governor 6/3/04. Effective upon Governor's approval. Article 2 of Chapter 73 of Title 38 of the Code of Laws of South Carolina.
SB 891
Amends laws governing insurance rates for all lines of casualty coverage. Effective 10/12/04. Act No. 315, Laws of 2004.
SOUTH DAKOTA
Financial Regulation
(Investments)
SB 193
Allows a domestic insurer to invest up to 20% of its assets in general obligation or revenue bonds of any U.S. state or Canadian province not rated by the Securities Valuation Office of the NAIC. The valuation of the investments will be the lesser of the amortized cost or the market value. Effective 7/1/04.
(Asset Determination)
SB 137
Counts goodwill arising from acquisitions and mergers occurring after January 1, 2001, as assets to be used in determining the financial condition of an insurer. Effective 7/1/04.
Guaranty Fund
HB 1211
Allows the South Dakota Insurance Guaranty Association to transfer claims handling and financial responsibility for a covered claim to an insured whose net worth is more than $50 million. Effective 7/1/04.
Licensure
SB 35
Prohibits an insurer from paying or assigning a commission, service fee or brokerage fee for a referral to any person not licensed as an insurance producer. Effective 7/1/04.
Miscellaneous New Insurance Laws
(Organizational Structure)
SB 1483
Clarifies that property distributable in the course of a demutualization or related insurance company reorganization is deemed to be abandoned after two years from the date of demutualization if no further communication was evidenced, despite best efforts to distribute the instruments or statements to the holder. Effective 7/1/04. Chapter 318, Laws of 2004.
(Regulations for Specific Lines - Farm Coverage/Regulation)
HB 1839
Expands the class of resident farmers that can associate for rural property self-insurance from class 7 towns with 4,000 person populations or less to class 6 towns with 6,000 person populations or less. Effective 11/1/04. Chapter 21, Laws of 2004.
Motor Vehicle Insurance
(Miscellaneous New Motor Vehicle Provisions - Cancellation/Nonrenewal)
SB 25
Allows an automobile insurance policy that has been in effect for less than 60 days to be cancelled for any reason if notice is given within 60 days of the policy effective date. Effective 7/1/04.
(Traffic Safety - DUI)
HB 1275
Requires a driver involved in an accident resulting in serious bodily injury to submit to chemical testing of blood, breath or other bodily substance. Effective 7/1/04.
Premium Tax
(Credits)
SB 39
Modifies the definition of 'regional home office' and requires an insurer that qualifies for a regional home office premium tax credit to maintain complete records in that office. Effective 7/1/04.
Rate Regulation
SB 37
Establishes a file and use system for rates for all lines of insurance, except inland marine and automobile, and exempts certain size commercial risks from rate and form approval. Effective 7/1/04.
State Building Codes
SB 134
Updates the new construction ordinances to reference the 2003 edition of the International Building Code. Effective 7/1/04.
Workers' Compensation
(Miscellaneous new Workers' Compensation Provisions)
Cancellation and Notification
HB 1048
Prohibits cancellation of a workers' compensation policy for nonpayment of premium, unless the employer has provided notification within at least 10 days. Effective 7/1/04.
TENNESSEE
FAIR Plans
SB 2668
Directs the insurance commissioner to develop a plan for the creation of a natural disaster property insurance pool to provide residential and commercial coverage for property owners unable to obtain it in the open market due to impacts tied to prior or future natural catastrophic events. Effective 4/5/04. Chapter 470, Laws of 2004.
Insurance Scoring
SB 2259
Establishes "sole basis" and other restrictions on the use of credit information by personal lines insurers. Effective 1/1/05. Chapter 527, Laws of 2004.
Motor Vehicle Insurance
(Proof of Coverage)
HB 2601
Requires motor vehicle reports to include evidence of compliance with financial responsibility requirements by individuals and vehicles involved in accidents. Effective 5/24/04. Chapter 757, Laws of 2004.
State Regulator
SB 2601
Directs insurance companies to respond within 30 days to requests made by the insurance department regarding complaints initiated by insureds. Effective 4/12/04. Chapter 496, Laws of 2004.
SB 3420
Authorizes the commissioner to require any insurer placed under administrative supervision to pay any and all costs incurred during that supervision. Effective 5/5/04. Chapter 604, Laws of 2004.
SB 3421
Expands the scope of the insurance commissioner's authority to issue licenses, permits and registrations and to investigate consumer complaints, by authorizing the commissioner to query the state bureau of investigation for criminal history records. Effective 4/22/04. Chapter 557, Laws of 2004.
Tort Reform
(Common Sense Consumption)
SB 2379
Limits liability arising from obesity or other conditions allegedly caused by or resulting from long-term consumption of food. Effective 7/1/04. Chapter 570, Laws of 2004.
UTAH
Captives
HB 17
Amends the state's captive insurance companies act by establishing related statutory definitions, insurance commissioner authorities, and regulations specific to special purpose captive insurers, sponsored captive companies, discounting of loss and loss adjustment expenses, incorporation as well as capitalization and reserve level requirements. Effective 5/3/04. Chapter 312, Laws of 2004.
CLUE
HB 250
Prohibits premium increases for certain claims or inquiries. It also makes numerous technical amendments to the Insurance Code. Effective 5/3/04. Chapter 117, Laws of 2004.
SB 52
Prohibits personal lines insurers from using certain types of losses, and from using certain inquiries, to make adverse eligibility or rate decisions. Effective 5/3/04. Chapter 266, Laws of 2004.
Financial Regulation
(Insolvency and Liquidation)
HB 172
Modifies the dollar amount for transactions a liquidator may engage in without the permission of the court and make other changes relating to liquidation. Effective 5/3/04.
Fraud
HB 171
Amends and revises insurance code provisions pertaining to fraud by changing certain definitions, prohibiting individuals from acting as runners, clarifies treatment of certain nonlapsing funds, establishes civil penalties and addresses criminal conduct, requires disclosure of fraud tied to title insurance, and makes numerous technical changes. Effective 5/3/04.
Licensure
HB 187
Requires providers of viatical settlements to file a license application and pay related fees. Effective 5/3/04. Chapter 106, Laws of 2004.
HB 21
Modifies the state insurance code related to insurer licensing by making changes to statutory definitions, initial and renewal application requirements, and cross-references. Repeals certain reporting requirements for appointments and for agency designations, requires producers to have experience with P/C to be eligible to add surplus lines, modifies record retention requirements, establishes privacy of certain records. Effective 5/3/04.
Miscellaneous New Insurance Provisions
(Insurance Code Exemptions)
SB 14
Provides an exemption from the insurance code for death, accident, health, and disability benefits provided by certain tax exempt organizations tax who have had their principal place of business in Utah for at least five years. Effective 5/3/04. Chapter 225, Laws of 2004.
(Interstate Insurance Product Regulation)
SB 162
Establishes the Interstate Insurance Product Regulation Compact to govern interstate insurance products. Effective 5/3/04. Chapter 234, Laws of 2004.
Motor Vehicle Insurance
(Miscellaneous New Motor Vehicle Insurance Provisions - PIP)
HB 325
Prohibits insurers issuing motor vehicle insurance policies that cover an at-fault driver from reducing compensation based on an injured party's failure to maintain a policy of insurance that provides personal injury protection (PIP) coverage. Effective 5/3/04. Chapter 126, Laws of 2004.
(Traffic Safety - DUI)
SB 20
Amends the state motor vehicle code and code of criminal procedure to address DUI standards. Establishes specific plea bargain standards as well as a requirement that persons convicted of DUI may be required to undergo mental health assessment to ascertain whether substance abuse treatment is needed. Effective 5/3/04. Chapter 228, Laws of 2004.
(UI/UIM)
SB 225
Prohibits interpolicy stacking in uninsured (UM) and underinsured (UIM) motorist insurance. Effective 5/3/04. Chapter 304, Laws of 2004.
Omnibus Insurance Law Changes
HB 245
Amends provisions of law pertaining to: definitions used in the Insurance Code; annual reports and record-keeping by the commissioner of insurance; annual statements; acquisitions and mergers; use of social security numbers; and trust obligations for funds collected by an insurer. Effective 3/10/04. Chapter 2, Laws of 2004.
State Building Codes
HB 215
Requires the Division of Occupational and Professional Licensing to adopt the following construction codes for the state and its political subdivisions to follow: (1) a residential one- and two-family dwelling code; (2) a fuel gas code; and (3) an energy conservation code. Effective 5/3/04. Chapter 110, Laws of 2004.
Telephone Sales
SB 27
Amends the Telephone and Facsimile Solicitation Act by providing that the state no-call database applies only to unsolicited telephone calls. Insurers continue to be exempt from the Act. Effective 5/3/04. Chapter 263, Laws of 2004.
Workers' Compensation
(Miscellaneous New Workers' Compensation Laws - Medical Examinations/Records)
HB 238
Requires injured employees and their physicians to comply with Labor Commission rules regarding disclosure of medical records relevant to the employee's industrial accident or occupational disease. Effective 5/3/04.
VERMONT
Motor Vehicle Insurance
(Traffic Safety - Child Safety Seats)
SB 25
Amends age and weight criteria for the use of child safety seat restraint systems. Effective 1/1/04. Act No. 28, Laws of 2004.
Workers' Compensation
(Omnibus Workers' Compensation Law Changes)
HB 632
Makes a number of changes to the state's workers' compensation laws. Effective 5/26/04.
VIRGINIA
CLUE
HB 818
Prohibits an insurer from refusing to renew a homeowners insurance policy solely due to a claim or claims that were incurred more than 60 months before the expiration of the current policy period. Effective 3/31/04. Chapter 300, Laws of 2004.
Fire Insurance
(Flood Damage)
HB 609
Requires that any insurer issuing fire insurance policies that exclude coverage for flood damage to provide written notification to that effect along with additional information sources about flood insurance as well as an advisory that contents coverage may be available through a flood policy issued for an additional premium. Effective 3/31/04. Chapter 288, Laws of 2004.
Miscellaneous New Insurance Provisions
(Exclusions - Homeowners)
HB 1007
Allows insurers to exclude liability for dangerous animals and attractive nuisances. Effective 4/12/04. Chapter 751, Laws of 2004.
(P/C Specific Regulatory Requirements)
HB 221
Clarifies the definition of miscellaneous casualty insurance as coverage against liability, loss, damage or expense arising from an injury to someone's economic interests. Effective 3/19/04. Chapter 182, Laws of 2004.
(Regulation of Specific Lines - Farmer's Insurance)
HJR 228
Recongnizes the need for and encourages the purchase of adjusted gross revenue insurance for farmers. Effective 3/10/04.
(Regulation of Specific Lines - Landlord/Tenant Coverage)
HB 153
Allows a landlord to name a tenant a "co-insured" on the landlord's property and casualty insurance and further clarifies damage insurance and renters insurance as well as landlord limitations related thereto. Effective 3/15/04. Chapter 123, Laws of 2004.
Mold
HB 824
Requires landlord disclosure to prospective tenants about visible evidence of mold in a dwelling. If the landlord reports no evidence of mold, and the tenant finds otherwise, the tenant can object in writing within five days. If the landlord reports visible evidence of mold, the tenant has the option of terminating the tenancy or accepting the unit in an 'as is' condition. Effective 3/29/04. Chapter 226, Laws of 2004.
Rate Regulation
HB 553
Clarifies that an insurer may file rate or supplementary rate information to limit renewal policy rate increases that would otherwise apply. Effective 7/1/04. Chapter838, Laws of 2004.
State Regulator
HB 69
Authorizes the Department of the Treasury's Risk Management Division to establish more than one risk management plan, specifying the terms and conditions for coverage, to provide liability coverage for various political subdivisions of the state. Effective 3/15/04. Chapter 121, Laws of 2004.
Telephone Sales
HB 689
Prohibits telephone solicitations to numbers on the national Do Not Call list, including calls to wireless-phone numbers, and prohibits telephone solicitors from blocking identifying information. Effective 3/29/04. Chapter 224, Laws of 2004.
SB 344
Prohibits telephone solicitations to numbers on the national Do Not Call list including calls to wireless-phone numbers, and prohibits telephone solicitors from blocking identifying information. Establishes instances of permitted solicitations. Effective 3/29/04. Chapter 202, Laws of 2004.
Tort Reform
(Appeal Bond)
HB 430
Sets the maximum amount for an appeal bond or irrevocable letter of credit, required of appellants collectively in a civil action, at $25 million, regardless of the value of the judgement. Effective 4/8/04. Chapter 356, Laws of 2004.
SB 172
Establishes a statutory ceiling amount of $25 million for appeal bonds in civil actions. Effective 4/8/04. Chapter 328, Laws of 2004.
Workers' Compensation
(State Oversight - Workers' Compensation Commission)
SB 597
Provides that the Workers' Compensation Commission has the powers of a court to administer oath, to mandate the appearance of witnesses and the production of documents, to punish for contempt, to appoint guardians and to enforce compliance with its orders and awards. Effective 3/19/04. Chapter 178, Laws of 2004.
(Miscellaneous New Workers' Compensation Provisions - Vocational Rehabilitation)
HB 270
Allows (appropriately certified) contractors or employees of state agencies and workshops that provide vocational rehabilitation to use the title "rehabilitation provider" if they are providing these services through the workers' compensation system. Effective 3/31/04. Chapter 271, Laws of 2004.
(Self-Insurers)
HB 474
Amends provisions relating to the security deposit required from workers' compensation self-insurers and defines acceptable financial instruments to include corporate surety bonds, certificates of deposit, U.S. government obligations, letters of credit, and cash. Effective 3/4/04. Chapter 44, Laws of 2004.
SB 323
Requires a specified financial deposit from self-insured workers' compensation insurers. Effective 3/19/04. Chapter 173, Laws of 2004.
(Lien Rights)
HB 864
Converts into a lien the assignment to an employer of an injured employee's right to recover damages from a third party. The lien rights would apply to occupational disease as well as injury. Effective 4/15/04. Chapter 914, Laws of 2004.
SB 558
Creates a lien on behalf of employers when injured/diseased employees recover damages from a third party. Effective 4/15/04. Chapter 941, Laws of 2004.
WASHINGTON
Financial Regulation
(Investments)
HB 2817
Establishes that insurer investments in limited liability companies (used to develop real property owned by the insurer) may not exceed the lesser of 4% of its assets or 50% of its surplus over its capital and other liabilities (if a mutual or reciprocal insurer 50% of its surplus over minimum required surplus.) Effective 4/12/04. Chapter 88, Laws of 2004.
(Surplus)
HB 2838
Allows a qualified domestic mutual insurer to increase its surplus by issuing a capital call. Effective 3/22/04. Chapter 89, Laws of 2004.