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Rate Modernization (Based on NCOIL Model, NCSL Principles)
NAMIC’s top state-based agenda item remains the adoption of “modernization” laws creating rate approval standards less restrictive than prior approval. Twenty-two states have adopted some form of rate modernization since 2003. We will be working with member companies and state trade partners to re-energize interest in rate modernization proposals and will fight any efforts to return to prior approval.
Underwriting Freedom
No less than 49 bills were introduced last year in 24 states to ban or severely restrict the use of credit-based insurance scoring. Despite the unqualified success of the NCOIL Credit-Based Insurance Scoring Model and a growing list of academic and governmental studies validating the importance of this underwriting tool to the industry and insurance customers, this issue will persist in 2010. In light of the economic crisis, legislator interest in Extraordinary Life Circumstance language will likely be on the rise in 2010. NAMIC strongly opposes any bill that weakens underwriting freedom, and we will continue to work with lawmakers, educating them on the benefits of underwriting freedom to consumers.
Civil Justice Reform
Attacks on tort law will continue this year. Beyond bad faith, we anticipate increased activity related to the application of the cy pres doctrine to class action settlements. NAMIC will continue to work with our state trade partners to defeat all manner of anti-civil justice reform proposals.
Natural Disaster & Coastal Issues
Legislator interest in state catastrophe funds is likely to continue this year, and NAMIC and our membership have the opportunity to be part of a solution resulting in long-term loss reductions. NAMIC will continue to work with our state trade partners to ensure the protection of homeowners in those areas affected most by natural disasters and coastal issues.
Legislative and Regulatory Information Service (LARIS)
NAMIC Survey of New State Insurance Laws