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NAMIC 2005 Survey of New State Insurance Laws Summary and Analysis

CATASTROPHE RELATED LAWS

In light of recent natural disasters, five states (California, Florida, Louisiana, North Carolina and Rhode Island) enacted catastrophe related legislation, including financial sources available to victims of such events.

California (AB 873) requires an insurer under a homeowners' insurance policy to provide an insured with a copy of the policy within an unspecified number of calendar days of receiving a request from the insured when a state of emergency has been declared by the Governor or the President in the area in which the insured property is located, or when there has been a loss that may be covered by a policy. California SB 518 provides that if a state of emergency has been declared, coverage for additional living expenses (ALE) shall be for a period of 24 months, provided that any extension of time beyond the period provided in the policy shall not act to increase the ALE policy limit in force at the time of loss.

Florida passed several bills of interest. Florida HB 315 requires home inspectors to receive proper training and be subject to continuing education requirements. HB 1939 creates public record and meeting exemptions relating to hurricane loss data and hurricane modeling. Florida SB 1486 dealt with the valued policy law, and made changes to the Florida Hurricane Catastrophe Fund. Florida SB 660 creates hurricane savings trust accounts for the purpose of paying the windstorm deductible on a homeowner's property.

Louisiana's legislature met in special session at the end of 2005 to address issues related to Hurricanes Katrina and Rita. Six bills were passed and signed in to law. SB 44 establishes a state mandatory and uniform construction code. SB 48 requires a fire insurance policy providing coverage for damage to property to provide prominent notice as to whether the insured has coverage for mold or flooding, and whether an increased deductible applies to hurricane damage. SB 55 requires that claims payments and settlements must include an itemized statement of provisions of coverage, coverage afforded and claims paid. SB 16 requires that settlement monies on claims arising under homeowner insurance policies be placed in interest-earning escrow accounts with interest accruing to the claimant under the policy. SB 88 provides for the right of removal and preservation of property directly affected by Hurricanes Katrina or Rita by the lessor. HB 11 provides for certificate of destruction to be obtained, and required, for the disposal of water-damaged vehicles.

North Carolina Senate Bill 7 creates a Disaster Relief Fund for victims of the 2004 hurricane season. Rhode Island HB 5205 amends current land to authorize the Insurance Commissioner to permit experienced adjusters not licensed in Rhode Island to engage in emergency insurance adjustment work for losses in Rhode Island, in the event of an emergency as determined by the Commissioner, or the declaration of a state of disaster by the Governor or President of the United States.

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

Military Personnel Insurance Related Legislation

Additional Emerging New Law Issue Trends