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NAMIC 2005 Survey of New State Insurance Laws Summary and Analysis

ADDITIONAL EMERGING NEW LAW ISSUE TRENDS

Captives

Arizona (HB 2600) made several changes to the laws regulating captive insurers including eliminating the requirement that captive insurers establish business relationships with accountants, banks, attorneys and other professionals located in Arizona. Delaware HB 218 updated the regulation of captives. Hawaii SB 1802, among other provisions, authorizes examinations of captives every five years after the initial triennial examination. South Dakota HB 1101 provides an exception for contracts of independent contractors who are captive insurance agents from the prohibition against contracts in restraint of trade. Utah HB 191 eliminates the premium tax on policies written by captive insurers and replaces it with an annual fee at the time certificate of authority is obtained or renewed.

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CLUE

Montana HB 537 prohibits an insurer from using a direct or indirect inquiry as a basis for denial or nonrenewal of insurance coverage or for increasing a premium. North Dakota SB 2186 restricts the use of claims history in person insurance underwriting. Oregon SB 118 establishes standards for rating and underwriting of homeowners insurance, requiring disclosure of the use of loss history reports for underwriting and rating, and gives consumers the opportunity to correct, amend or delete information in a loss history report. Virginia HB 814 prohibits canceling or nonrenewing homeowner's insurance policies based solely on inquiries from insureds about insurance coverage or policy provisions.

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Corporate Governance

North Dakota SB 2088 eliminates the requirement that the Attorney General review and approve insurance company articles of incorporation. Tennessee HB 1275 eliminates the state's "anti-affiliation" provisions, while HB 1639 requires an insurance company officer, director, or committee member to disclose their stock or ownership interest in order to own or have an ownership interest in publicly traded stock or in a regulation financial institution.

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E-Commerce / Electronic Transmittals

Colorado HB 1119 requires property/casualty insurers to offer policyholders the option to pay premiums on a monthly basis and to make payment via electronic transfer. Georgia HB 418 allows for electronic notice of cancellation of policies to lienholders if they agree to such a transmission. Virginia HB 2470 includes locally elected constitutional officers in the definition of public body for purposes of the Uniform Electronic Transaction Act (UETA).

FAIR Plans

Kentucky HB 164 amends the statutes pertaining to the reinsurance association of the Kentucky FAIR Plan. Minnesota SF 314/HF 667 eliminates policies sold under the FAIR Plan from complying with the law in regards to full payment for total losses, if in a total loss of an over insured property, there is a refund in premium for the amount of the premium that is attributable to the amount of over insurance as long as the loss is fully paid.

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Farm Mutuals

Arkansas enacted SB 1087, titled the Farmers' Mutual Aid Associations Act, increasing the minimum surplus and the minimum number of members, among other changes. Montana HB 188 expands reinsurance options for farm mutual insurers. North Dakota HB 1501 clarifies the territorial writing limitations of county mutual insurance companies. South Dakota HB 1094 creates the division of farm mutual insurance companies. West Virginia SB 256, in addition to requiring notice be sent to fire insurance policyholders that the policy does not cover flood insurance, clarifies that the Insurance Fraud Prevention Act also applies to farm mutual insurance companies.

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Financial Regulation

Idaho enacted three laws pertaining to financial regulation. HB 113 requires producers who hold funds in trust for others to maintain and account for the funds separately from the producer's personal or business funds. HB 114 requires an insurance producer who borrows money from a customer to complete a loan agreement signed by all parties setting forth loan terms. HB 116 repeals existing requirements that all foreign insurers attach an affidavit to their annual financial statement certifying that the insurer has complied with the state's countersignature requirements.

Kansas HB2323 requires that every insurance company having capital stock, now existing or hereafter organized under Kansas laws, shall have officers with titles and duties corresponding to those stated in the bylaws or a Board resolution which is not inconsistent with the bylaws. Also, Kansas HB 2171 updates the risk based capital requirements.

Maryland HB 666 provides that a person may not be prohibited from exercising specified rights in delinquency proceedings brought under specified provisions of law against a specified insurer.

Massachusetts HB 4169 relates to updating and improving tax law provisions and laws relating to the Department of Revenue, and establishes standards and procedures regarding confidentiality of information disclosed to other agencies or entities. Minnesota (SF 767/HF 1043) transferred virtually all laws dealing with the incorporation to the state's general corporation laws.

Mississippi HB 1322 provides that the Commissioner of Insurance shall make available to insurance companies the blank forms necessary for their requirement statements of financial condition. Also, every insurance company is required to file a quarterly statement showing the business standing and financial condition of the company for that company. Penalties are provided for any insurance company that neglects to make and files its quarterly statement.

Missouri SB 131 permits insurance companies to invest capital, reserves and surplus in preferred or guaranteed stocks.

North Carolina House Bill 660 makes various changes to the insurance financial laws, while House Bill 672 reduces the holding for certain unclaimed property held as stock or other equity interests in a business association, including cash distributions of a demutualized insurance company.

Oklahoma HB 1536 authorizes domestic companies to make certain investments in equipment, systems and other property. South Dakota HB 1046 allows the subject of an examination, other than a financial examination, to make a written request for a copy of the examination report from the Division of Insurance.

Tennessee SB 2261 adds language to existing statutory provisions for the compensation of examiners. Texas SB 1591 gives the Texas Insurance Department greater ability to rely on audits prepared by an insurer's CPA, by requiring CPAs to consider the procedures in the NAIC examiner's handbook while performing insurer audits. HB 2157 adopts the draft NAIC Insurance Receivership Model Act. SB 1592 allows the insurance commissioner to require an insurer to make a deposit in the form of cash or security if the commissioner determines the insurer is operating under a potentially hazardous condition.

Washington HB 1034 establishes circumstances when an insurer would be subject to administrative supervision by the state insurance commissioner. Washington SB 5317 provides for confidentiality of certain documents pertaining to financial or market conduct examinations. West Virginia HB 2973 allows a domestic insurance company to deposit or arrange for the deposit of securities held in or purchased for its general account and its separate accounts in a clearing corporation or the Federal Reserve book-entry system. SB 253 permits the Insurance Commissioner to waive or to reduce penalties for the late filing of tax returns. SB 666 relates to exemptions for certain insurance companies from business franchise tax and corporation net tax.

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Fire Insurance

California SB 2 requires the Department of Insurance to make recommendations to instruct producers and applicants for insurance in proper methods of estimating the replacement value of structures and of providing options of the appropriate levels for coverage under a homeowner's policy. California SB 150 requires the insurance carrier or agent responsible for an adverse underwriting decision to provide the specific reasons for the cancellation, nonrenewal, or declination of homeowners insurance. Idaho HB 136 provides that proof of mailing of notice of cancellation of a fire policy, intent not to renew or reasons for cancellation or nonrenewal to the named insured to their residence represents sufficient notice. Under Minnesota HF 1/SF 609, insurers are not required to provide coverage for clean-up costs associated with specific Methamphetamine labor cleanups.

Rhode Island SB 327 requires a notice to policyholders that the standard fire insurance policy may not cover damage caused by floods. West Virginia SB 256 requires insurers that provide fire insurance coverage, including farmer's mutual insurance companies, must notify policyholders that the policy does not cover flood insurance and to make policyholders aware of the National Flood Insurance Program.

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Fraud

Idaho enacted two fraud laws, the first (HB 115) clarifying that all Idaho law enforcement agencies and any prosecutor that may have jurisdiction are authorized entities for insurance fraud reporting purposes. Idaho HB 1177 establishes a dedicated insurance fraud prosecutor in the Idaho Insurance Department. Louisiana HB 689 provides for restitution to insurers subject to automobile insurance fraud. Maine HP 1099 requires the Superintendent of Insurance to study the feasibility of establishing a fraud unit within the insurance bureau. Montana SB 114 amends penalties related to insurance fraud violations. Indiana HB 1403 amends laws governing insurance fraud to further define acts that constitute insurance fraud. Missouri HB 866 changes the laws regarding insurance fraud, and penalties may be imposed. West Virginia HB 2878 allows the fraud unit to investigate the forgery of insurance documents.

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Guaranty Funds

Georgia HB 407 made numerous amendments to the Georgia Insurance Insolvency Pool. Idaho HB 162 clarifies refund obligations and options of the state guaranty association. Kansas HB 2326 amends and updates the KIGA Act, clarifying restrictions on covered claims and the extent to which claims are payable. Rhode Island HB 5776 extends the date of lapse for the ability to assess from different accounts to make all necessary payments from any under funded accounts for a specific time period. Washington HB 1196 includes the long shore and harbor workers' compensation account within the state's guaranty association.

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Insurance Scoring / Credit History

Illinois HB 0265 amends the Use of Credit Information in Personal Insurance Act, prohibiting insurers from using the credit information or the credit report of a consumer when issuing a policy of automobile insurance. Minnesota's Insurance Regulatory Modernization Act (HF 1669/SF 1462) contains a provision authorizing an insurer, in addition to the current authorization for agents, to collect an insurance score or credit score without written authorization if the insurer informs the policyholder or prospect policyholder that the insurance or credit score will be obtained to underwrite the policy. Montana SB 311 regulates the use of credit information in personal lines insurance.

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Mold

Washington SB 5049 requires landlords to disclose to tenants information about the health hazards associated with exposure to indoor mold.

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Policy Form Filings

Hawaii SB 754 requires that any policy revisions that alter coverage in any manner shall be filed with the Insurance Commissioner, consisting of two printed copies and one copy by electronic, telephonic or optical means, and shall include an analysis of the impact of each revision on rates. Louisiana HB 687 provides that conversion of policy forms that result in a rate change are subject to the laws governing rate changes. Maryland HB 217 clarifies that specified form filings require payment of specified fees and requires the Insurance Administration to collect specified fees for certain filings from motor clubs. Delaware HB 254 requires that expenses and fees of the Department of Insurance for review and determination of a rate and form filing by an insurer shall be assessed to and paid by the insurer, in addition to the $50 filing fee. Minnesota Department of Commerce Omnibus Insurance Bill (HF 1809 / SF 1783) raises form/rate filing fees from $75 to $90, unless the filing is electronic, where the fees stay at $75.

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Premium Tax

Kentucky HB 18 permits the Department of Insurance to impose a penalty against an insurance company that willfully engages in a pattern of business of failing to properly collect and remit the fee or tax imposed by a government entity. Minnesota HF 228/SF 1675 defines reinsurance for purposes of the insurance gross premium tax.

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Producer Compensation

Connecticut HB 6806 requires certain insurance producers to disclose their compensation arrangements to consumers prior to the delivery of a new insurance contract. Michigan HB 5332 eliminates the prohibition against producers giving applicants for insurance any items of less than $10 in value. Rhode Island HB 6233 (also Rhode Island SB 1015) provides rules for the disclosure of compensation where any insurance producer receives any form of compensation from a customer for the initial placement of insurance. South Dakota SB 49 restricts the ability of insurance producers to pay or assign a commission, service fee, brokerage fee, or any other valuable consideration for a referral to any person not appropriately licensed. Texas HB 2941 sets forth agent disclosure requirements regarding compensation to be received from an insurer or third party for the placement or renewal of insurance.

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Producer Licensure

Arizona HB 2189 prohibits applicants for the insurance producer license from taking the licensing examination more than four times within a 12-month period. Applicants are also required to pass the license examination within the 120-day period prior to the day the Director receives the application. Also, under Arizona HB 2190, an insurance producer may obtain surplus lines insurance for a policyholder through a surplus lines broker if the producer utilizes the broker's license for the transaction. Connecticut HB 607 waives the filing fee for any insurer that requests an agent appointment in this state when the insurer is domiciled in a state or foreign country that offers reciprocal waivers to Connecticut insurers. Connecticut HB 6805 addresses provisions concerning the renewal of insurance producer licenses. Florida HB 501 allows a general lines agent to hold a managing general agent license as long the MGA licenses was issued in another state. Florida SB 1432 made numerous updates to the Third Party Administrator statute. Also, Florida SB 1912 mandates the licensing and registration of insurance agencies with the Department of Financial Services.

Indiana SB 75 provides an exemption to producers age 70 or higher who have been licensed for at least 20 years immediately preceding the licensing renewal date, from continuing education requirements. Kansas SB 176 provides new terminology for insurance brokers. Kentucky HB 275 makes numerous changes to the state's producer licensing laws. Louisiana HB 402 provides for the requirements of business entities to act as insurance producers. Maine HP 278 eliminates the biennial continuation fee for producers with independent producer authority. The Insurance Superintendent is also authorized to establish the number of continuing education credit hours required of resident producer and consultant licensees, rather than continue to specify the number of hours by law.

Maryland HB 160 requires specified insurance producers to receive continuing education relating to flood insurance. Minnesota passed an Omnibus Licensing Bill (SF 1815), including provisions requiring each license education course to receive prior Department approval and that each course sponsor have at least one coordinator to insure compliance with all state laws. Also, a licensed producer who has a license in any one line of insurance is prohibited from being authorized to sell any other line permitted under state law.

North Dakota HB 1213 establishes that an unauthorized transaction of insurance is considered a Class C felony. HB 1176 pertains to insurance agents who sell securities. HB 1113 establishes specific continuing education requirements for producers or consultants. Rhode Island HB 5302 and SB 210 change the number of years insurers must hold a license in order to qualify for a continuing education exemption. Tennessee SB 141 exempts from insurance producer license requirements persons who sell optional insurance in connection with motor vehicle rental agreements that are less than 90 days in duration. Also, Tennessee SB 302 establishes licensing procedures for home inspectors.

Utah HB 60 amends producer licensing and continuing education requirements and procedures.

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Rate Regulation

Alaska HB 216 enacted insurance rate modernization through the adoption of a flex-rated based rate approval system allowing rate changes of up to 10% without prior approval. This law is applicable to all rates except workers compensation, medical malpractice and assigned risk plans. Arizona SB 1084 allows insurers to transfer a policyholder to an affiliated insurer if the rates charged by the new insurer are the same as the rates charged by the original insurer. Hawaii HCR 83 requests the insurance division to conduct a review of the NCOIL Property Casualty Insurance Modernization Act.

Louisiana HB 319 provides for the calculation of insurance rates under the Louisiana Citizens Property Insurance Corporation. Minnesota passed the Insurance Regulatory Modernization Act, (HF 1669/SF 1462), which includes many provisions covering a wide range of insurance issues. Nebraska passed LB 119, enacting a file and use system for personal lines and workers compensation (previously prior approval.) The law preserves the Insurance Department's ability to disapprove rates within 30 days of a filing if the filing violates any of several conditions. Nebraska LB 199 also adopts the Property/Casualty Actuarial Opinion Act, which requires the annual filing of certain documents, including a "Statement of Actuarial Opinion."

Oklahoma HB 1535 provides that rates, rating plans, and loss costs for inland marine insurance shall be deemed approved now 90 days (previously 30 days) following certification of completion of filing. Texas SB 1863 requires an insurer that has charged an excessive or unfairly discriminatory rate for personal lines auto or residential property overage to refund the interest accrued on that portion of the premium charged. Virginia SB 913 revised rating criteria for large commercial risks. HB 2219 allows rate caps for certain renewal policies. West Virginia SB 30 makes numerous changes, including discontinuing use of prior approval system for commercial rates and forms. Wyoming SF 78 establishes additional (flex band) rating procedures for rate changes setting forth hearing requirements for rate changes that exceed 20% and revising provisions pertaining to the renewal of professional malpractice liability coverage.

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Reinsurance

South Dakota HB 1188 revises certain provisions regarding amounts payable under reinsurance contracts in liquidation proceedings of insurers. West Virginia SB 253 relates to reinsurance intermediaries, and SB 459 relates to a reinsurer's liability in an insolvency.

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Self Audit

Under Omnibus Insurance Law Changes, see Connecticut SB 999. Kansas HB 2357 is based on the NCOIL self-evaluative privilege model, establishing that an insurance compliance self-evaluative audit document is privileged information and will not be discoverable or admissible as evidence in legal proceedings. Missouri enacted HB 388, its version of the self-audit privilege bill. North Carolina House Bill 654 enhances the confidential treatment of insurance market conduct analysis and financial analysis files.

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State Building Codes

Florida HB 835 directs the Florida Building Commission to update the state Building Code, while SB 442 addressed several issues relating to the development and administration of the Florida Building Code. Louisiana HB 552 provides for the Commercial Building Energy Conservation Code, while House Resolution 135 creates the Uniform Building Code Task Force. Massachusetts S2152 relates to the installation of carbon monoxide alarms and smoke detectors in residential buildings, and provides that the state building code may impose stricter requirements for new construction. Ohio HB 175 establishes a state residential building code. (Also, see Tort Reform, Contractor Issues, for more on Ohio HB 175.)

South Carolina HB 3026 pertains to modifications and re-adoption for subsequent editions of the building code. SB 580 creates an Accessibility Committee for Building Codes Council to advise the Council on matters of accessibility to buildings, structure, and facilities by persons with disabilities. Tennessee SB 2263 revises various provisions governing statewide building codes and the codes governing buildings to be accessed by handicapped persons. Tennessee SB 2264 revises standards for the installation of smoke detectors for one or two-family rental units and residential buildings. South Carolina SB 581 and Virginia HB 1955 relate to the promulgation of regulations for installation and inspection of boilers.

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State Regulator

Arkansas HB 2900 allows the Insurance Commissioner to impose upon foreign insurers doing business in Arkansas the same taxes, licenses, fees, fines, penalties, deposit requirements, obligations, prohibitions and restrictions imposed on Arkansas insurers by other states. Arizona HB 2194 extends the time period the Department of Insurance to five years from three years to examine public agency and contractor pools. Colorado HB 1320 mandates that upon insolvency of an alien insurer or reinsurer that provides security to fund its US obligations, assets are to be maintained in the US and claims are to be filed with and valued by the state insurance commissioner with regulatory oversight. Idaho HB 119 specifically lists the Insurance Department Director's enforcement powers within a single code section and clarifies that the director's enforcement orders are subject to procedural requirements for notice, hearing and appeals. North Dakota SB 2093 authorizes the insurance commissioner to waive required hearings concerning consolidation, reinsurance, merger, or other acquisition of control of a domestic insurer if the companies involved and all the policyholders of the domestic companies involved consent to waiving the hearing.

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Structured Settlements

Delaware HB 168 established additional provisions regarding the regulation of structured settlement payments. Oregon SB 645 regulates the transfer of a beneficiary's structured settlement payment rights.

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Surplus Lines

Colorado HB 1297 establishes provisions regarding exemptions for non-admitted insurers, brokers' record-keeping, and surplus lines broker policy form requirements. Louisiana HB 164 pertains to notice of surplus lines brokers of an insurer's removal from the approved list. North Dakota HB 1112 clarifies that surplus lines producers may accept business only from licensed producers for nonadmitted carriers. Rhode Island SB 542 increases the amount of trust fund required for surplus lines insurers. Utah HB 200 defines gross premium for a surplus lines transaction subject to taxation as the monetary consideration for an insurance policy, including all fees charged to the insured.

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Telephone Sales

North Dakota SB 2249 amends provisions governing telephone solicitations. Texas HB 210, among other things, resolves some differences between the Texas no-call list and the FTC national do-not-call registry.

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Terrorism Coverage

Arizona (HB 2191), Idaho (HB 160) and North Dakota (SB 2094) enacted legislation in 2005 allowing a standard fire policy to exclude coverage for loss by fire or other perils insured against if the loss is caused either directly or indirectly by terrorism.

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Unfair Practices

Colorado SB 100 requires homeowner insurance policies to comply with all provisions of the state's insurance laws pertaining to unfair methods of competition and deceptive acts or practices. Delaware HB 90 increases penalties for violations of unfair insurance practices. Rhode Island HB 5876 and SB 489, among other things, limit the amount of late fees an insurer may impose when premiums are received late, require all policies to contain clear language on the method of returned premiums of a policy is cancelled, require written notice of claim settlement payments and provide the procedure for insurer retention of unpaid premium settlements. Michigan HB 5332 prohibits an insurer or producer from giving merchandise having an invoice value of $10 or less.

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Uniform Commercial Code

Connecticut HB 6985 adopts revisions to article 1 of the UCC in order to conform Connecticut commercial law with recent changes in the uniform law.

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Omnibus Insurance Law Changes

Arkansas passed two omnibus acts in 2005. The first, SB 369, amends provisions concerning the Self-Insured Fidelity Bond Program for public employees; mortgage guaranty insurance; reinsurance contracts; investments, dividends, and distributions by domestic insurers; derivative transactions; powers and duties of the Insurance Commissioner; and excess charges for insurance. The second is SB 233, which impacts medical malpractice reform; auto and homeowners coverage; cancellation and rate change requirements; compensation disclosure for producers; and policyholder right to loss and claims history information. Nevada passed AB 338, which made numerous changes to the state's insurance laws impacting premium taxes and certain fees for risk retention groups, regulation of credit personal information, insurer investment opportunities, producer commissions, the state guaranty association as well as consumer credit insurance and captive insurers.

Connecticut SB 999 amends the insurance statutes to authorize the insurance commissioner to adopt regulations concerning the confidentiality of certain documents, add "affiliates" to provisions concerning the investment of admitted assets, delete a reference to the licensing fee section under the Unfair Insurance Practices Act, and amends the definition of "insolvent insurer" under the Connecticut Insurance Guaranty Association. Iowa SF 360 is the state's Insurance Department 2005 Omnibus insurance bill. Minnesota's Department of Commerce Omnibus Insurance Bill (HF 1809 / SF 1783) includes several provisions, including the requirement that homeowner insurers to provide notice to the insured that a policy is being non-renewed because the agent contract is being non-renewed.

Utah HB 195 addresses a variety of provisions within the states' insurance laws addressing powers and duties of the commissioner, tax payments, record maintenance, policy termination, reporting requirements, and unfair marketing practices.

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Miscellaneous New Insurance Provisions

Alaska HB 147 authorizes the authority of agents and managing general agents may be suspended or revoked in accordance with the suspension or revocation of the insurer's license. Arkansas SB 236 requires an insurer other than a personal lines insurer to provide its insured with written notice of the terms of settlement of a claim if the insured notifies the insurer in writing that the amount of or liability for the claim is contested and requests in writing notice of the insurer's settlement of claim. Arkansas HB 1076 prohibits the insurer for the party who is liable for damages to an injured party from conditioning settlement or payment of a judgment in favor of the injured party and the injured party's insurance company. Connecticut SB 31 requires each insurer that assesses a fee for late payment of premium on a policy for personal risk insurance to indicate the amount and applicability of the fee in a conspicuous manner on the actual bill sent to the policyholder. Connecticut SB 963 authorizes same sex marriages. Delaware HR 43 established a task force to make recommendations regarding the need for any changes to the state's abandoned property laws, while Georgia HB 431 provides for an alternative method of disposition with respect to certain dividends or capital credits, which are presumed abandoned.

The Hawaii Legislature also overrode the Governor's veto of HB 160, which exempts insurers from assessments and fees paid into the Compliance Resolution Fund. Instead, a formula is provided for determining assessments to be paid by each line of insurance, capping assessments at $5million per fiscal year, and requiring at least 60 days' notice to insurers of the assessments. Indiana SB 32 provides that if a person enters the premises of a nonprofit religious organization used for worship services with the permission of that organization, the only duty the nonprofit organization has is limited to those circumstances specified. Indiana SB 298 changes the state's administrative rulemaking law requiring an agency to submit a rule with an estimated economic impact greater than $500,000 to the legislative services agency for a fiscal impact statement. HB 1501 creates the office of Inspector General, and includes the requirement that the Department of Administration adopt rules requiring a person lobbying the executive branch to register as an executive branch lobbyist.

Iowa HF 420 relates to third party payments of health care coverage costs for biologically-based mental illness treatment. Iowa SF 74 restricts the use of the name, trademark, logo, or symbol of a financial institution or insurer without its consent. Iowa SF 206 addresses management of the state's deer population, homeowner responsibilities, and provides for related penalties and appropriation. Kansas SB 2171 requires that a policy for amusement ride insurance must be written by an insurance company doing business in Kansas. Kansas SB 176, in addition to establishing new terminology for insurance brokers, provides limitations on insurance value of improvements on real property to replacement cost, and requires notice must be given when a block of business is closed.

Louisiana HB 76 increases the fee on premiums for commercial surety underwriters who write criminal bail bonds in Orleans Parish. House Bill 653 requires continuing education for title insurance producers. House Bill 771 provides for insurance reporting requirements for operators of air-supported structures. Maine SP 167 requires that the transfer of a policy from an insurer to an affiliate be considered a policy renewal, so that prior to the date of renewal of a policy that has been transferred by an insurer to an affiliate, the insured must receive notice of any changes to the terms of the policy that are less favorable to the insured. Maine HP 177 allows the Superintendent to authorize insurers to non renew a line of business if the insurer demonstrates that competition in that line exists.

Maryland HB 788 provides that specified provisions of law do not make illegal the activity of persons engaged in insurance with respect to conduct regulated by the insurance commissioner or authorized by specified provisions of law. Nevada AB 137 requires insurers to mail written notification of payment to a claimant at his last known address if the insurer is paying a claim of 5,000 or more to a person other than the claimant when the claimant is a natural person. North Carolina House Bill 646 consolidates various fees into the annual license continuation fee paid by licensed insurance companies. North Carolina House Bill 733 requires statistical organizations to be licensed by the Department of Insurance, while Senate Bill 552 provides an unauthorized insurer against which an emergency cease and desist order has been issued to petition the Department of Insurance for a hearing on the matter.

North Carolina House Bill 646 consolidates various fees into the annual license continuation fee paid by licensed insurance companies. North Carolina House Bill 733 requires statistical organizations to be licensed by the Department of Insurance, while Senate Bill 552 provides an unauthorized insurer against which an emergency cease and desist order has been issued to petition the Department of Insurance for a hearing on the matter.

Oklahoma SB 321 creates the Oklahoma Subsidence Insurance Act, making coverage available for residents, living units and commercial buildings. Oregon HB 2719 amends the timing requirements regarding renewal and cancellation notification for commercial liability policies. Tennessee HB 413 revises notice requirements if the percentage of increase of rates or factors included in the definition of supplementary rate information on a commercial risk policy will be increased by more than 25%. Rhode Island SB 1174 amends provisions of the Lead Hazard Mitigation Act. No insurance-specific provisions were affected by this amendment.

South Carolina HB 3130 requires riders of amusement and carnival devices to comply with certain safety requirements. SB 803 defines terms and makes changes related to the safety of amusement rides. HB 3383 enacts the Fire Protections Systems Act, which includes provisions to license and regulate the fire sprinkler system industry. SB 365 relates to bond and security for construction contract performance and payment. SB 637 changes the term "staff leasing services" to "professional employer organizations" and specifies the insurance information that an organization must provide to employees and the Department of Consumer Affairs.

Tennessee SB 92 requires commercial lines insurers, within 30 days of request, to provide the insured or producer of record a copy of the insurer's prior three-year loss run history. Tennessee SB 758 clarifies that a person engaged in the business of selling, repairing, or manufacturing boats may loan a boat to a consumer or potential consumer, and during that time the operator of the boat is liable for any negligence or violations of law that occur while operating the boat. SB 1129 requires a tax preparation service company to obtain surety bonds. SB 1347 establishes regulations for vehicle product protection warranties. Tennessee HB 681 requires that French drains shall not apply to manufactured homes installed in any portion of a mobile home or manufactured home trailer park, operating as such on or before 1/1/04, in which all lots have underground utilities.

Texas SB 14 establishes the framework and protocols for department market conduct actions. The law also amends provisions related to discounts on homeowner's insurance policies to specify what may not be considered a claim including claims that are filed by not paid or payable under a policy. Utah SB 48 prohibits cancellation or nonrenewal of motor vehicle or homeowner's policies based solely on specified circumstances.

Virginia passed several miscellaneous laws related to property/casualty insurance. HB 2410 requires insurers to provide no less than 90 days notice of a cancellation or non-renewal of, or premium increase of more than 25% for, a medical malpractice insurance policy. HB 2523 clarifies that localities are permitted to charge insurers for ambulance services provided to any person covered by an accident and sickness insurance policy that provides coverage for ambulance services. HB 2821 permits title insurance companies to charge risk rates that it negotiates with a potential insured. SB 832 and SB 912 address violations, and fees upon settlement, under the Consumer Protection Act. SB 1059 authorizes fees for certain securities and surety bonds. HB 1711 clarifies that where a landlord obtains for a tenant renter's insurance, the landlord shall name the tenant as a "co-insured". HB 1792 sets for insurance requirements for ultra light aircraft. HB 1882 contains miscellaneous casualty insurance requirements, including the requirement insurers deliver written notice of cancellation, renewal, reduction in coverage, or certain rate increases to the named insured. HB 2446 provides that no condominium association or property owners' association shall require reimbursement of any costs not expressly authorized in law. SB 1260 authorizes a liability insurer to limit its liability for injury or damage resulting from any one accident or occurrence to the liability limits for such coverage set forth in the policy for any accident or occurrence or for any one person.

Wyoming SF 88 establishes additional claims reporting requirements for insurers writing medical malpractice coverage.

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Also Inside This Summary

The following provides a brief summary and analysis of each of the notable key issue trends that emerge from NAMIC's 2005 listing of new laws.

Search for an Issue Overview

Motor Vehicle Insurance

Workers' Compensation

Tort Reform

Identify Theft

Catastrophe Related Legislation

Military Personnel Insurance Related Legislation