NAMIC National State Legislative Agenda

FIRST PRIORITY

Rate Modernization (Based on NCOIL Model, NCSL Principles)

NAMIC’s top agenda priority remains adoption of "modernization" laws based on NCOIL models and NCSL principles, creating rate-approval standards less restrictive than prior approval. To date, 22 states have adopted some form of rate modernization, moving away from strict prior approval. NAMIC advocates will be working with member companies and state trade partners to re-energize interest in rate modernization proposals and to fight any efforts to return to prior approval.

Underwriting Freedom (Insurance Scoring, CLUE, Predictive Modeling)

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. In 2010, 79 bills in 27 states were introduced to ban or further prohibit the use of insurance scores. None were adopted.

Civil Justice Reform: “Bad Faith”

During this biennium, NAMIC has worked diligently to defeat 38 bills that were introduced in 20 states that would erode tort laws and provide unfair advantages to plaintiffs’ attorneys. Only one state passed legislation. 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 continues, and NAMIC and our membership have had the opportunity to be part of the solution. This work has resulted 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.

TARGETS OF OPPORTUNITY

Accident Response Fees

NAMIC views these fees as a form of double taxation applied only to responsible drivers carrying insurance. Ten states have passed legislation banning accident response fees. NAMIC’s Issue Brief on accident response fees continues to serve as a source for legislators and the media.

Market Conduct Reform

According to the NAIC, 29 states plus D.C. now require the filing of market conduct annual statements. NAMIC staff continues to seek a reasonable solution to the Market Conduct Annual Statement issue at the NAIC.

Customer Choice in Auto Repair

Sectors of the auto repair industry are intensifying efforts to pass legislation that would restrict consumer options regarding auto repair and deliberately limit information insurers can make available to consumers, thereby, impairing the ability of consumers to make informed decisions on repairing their vehicle. NAMIC continues to work with the industry and other interested parties to defeat bills affecting consumers’ right of choice.

Fee Increases/Inappropriate Use of Residential Market Mechanisms to Balance Budgets

In 2009, legislators in seven states made attempts to increase fees or shift funds from residual mechanisms in order to balance state budgets. Legislation was adopted in four states. In each of these states, the insurance industry is pursuing legal remedies. NAMIC will continue to fight legislatures that attempt to increase fees or shift funds from residual mechanism.

Farm Mutual Modernization

Since 2003, NAMIC staff has helped farm mutual companies in several states revise their governing statutes. Although enactments have varied from state to state, most allow for new geographic territory for farm mutual companies and eliminate outdated and sometimes contradictory sections of the code.

Posted: Thursday, January 11, 2007 12:00:00 AM. Modified: Tuesday, August 17, 2010 2:38:50 PM.