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NAMIC 2005 Survey of New State Insurance Laws Summary and Analysis

MILITARY PERSONNEL INSURANCE - RELATED ISSUES

Another new, and predominant trend to emerge from the review of the 2005 insurance laws, addresses military personnel insurance related legislation. Nine states (Colorado, Florida, Indiana, Kansas, Louisiana, Maryland, Michigan, Mississippi and Virginia enacted 11 such laws. Colorado SB 70 prohibits insurers from reducing or canceling coverage (except for nonpayment), refusing to issue, or renew a policy, or surcharge a newly issued or renewed policy due to an individual's failure to maintain coverage during a period in which the individual was deployed or called to active military duty. Florida SB 450 provides that certain rate increases for motor vehicle insurance for insureds on active military service, and their covered dependents, constitute unfair practices.

Indiana HB 1375 provides a waiver of continuing education and license renewal requirements for producers serving active duty in the armed forces, while Indiana HB 1219 prohibits the setting of automobile insurance rates for individuals serving in the armed forces that are higher than for other policyholders.

Kansas SB 103 requires no personal insurance issued to a Kansas resident on active military deployment beyond the United States borders, or spouse or any dependent of such Kansas resident, shall be subject to cancellation, non-renewal, premium increase or adverse tier placement for the term of their deployment based solely on the Kansas resident's military deployment. Kentucky HB 80 pertains to processing applications if the owner of a vehicle is serving in the Armed Forces outside of Kentucky.

Louisiana HB 69 provides for discount for automobile liability insurance for active military personnel paid by a credit against the premium taxes.

Maryland HB 1218 prohibits insurers, except under specified circumstances, from denying, refusing to renew, canceling or raising private passenger auto or homeowner rates for military personnel returning from active duty overseas because they fail to meet underwriting standards that require continuous coverage.

Michigan HB 4421 waives continuing education requirements for insurance producers if the producer is unable to comply with the requirements due to military service, or if the commissioner determines that enforcement of the requirements will cause a severe hardship.

Mississippi SB 2094 provides that military personnel and dependents may renew a driver's license by mail or on-line when out of state on active duty.

Virginia HB 2186 provides that any vehicle safety inspection approval sticker issued for any vehicle whose registered owner is a person in the United States armed services will not be held to have expired during the period of the owner's official absence from Virginia. Virginia SB 1035 provides that a claim for workers' compensation shall be deemed to be in the course of employment with the Virginia National Guard, Virginia State Defense Force, or naval militia for any member thereof, who, in reacting to an order to report while he is outside an assigned shift or work location, undertakes travel to his designated place of state active duty.

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

Additional Emerging New Law Issue Trends