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NAMIC 2005 National State Legislative Agenda

NAMIC Advocacy Actions and Archived Agendas

Latest State Advocacy Actions

National: NAMIC unveils new Legislative and Regulatory Information Service (LARIS). Contact Roger Schmelzer. (Date Posted: 12/21/2005)

Maine: NAMIC proposal for correcting a Maine Supreme Judicial Court decision regarding mandated uninsured motorist coverage as the most “straightforward” approach in a recent report. Contact Paul Tetrault. (Date Posted: 12/12/2005)

NAIC: NAMIC welcomes NAIC decision to drop work on a CLUE model law. Contact Marsha Harrison. (Date Posted: 12/12/2005)

NAIC: NAMIC Board of Directors rejects the NAIC SOX alternative proposal. Contact Chuck Chamness. (Date Posted: 12/7/2005)

NAIC: NAMIC testifies at NAIC Catastrophic Insurance Task Force hearing. Contact Roger Schmelzer. (Date Posted: 12/4/2005)

Complete Advocacy Actions

NAMIC 2004 National State Legislative Agenda

NAMIC 2003 National State Legislative Agenda

NAMIC 2002 National State Legislative Agenda

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Three issues remain a priority from the 2004 agenda approved by the board. They are:

Rate Modernization (Based on NCOIL model and NCSL Principles) NAMIC's number one public policy priority is the preservation of state regulation of insurance through the adoption of regulatory "modernization" laws creating rate approval standards less restrictive than prior approval. In 2004, personal lines rate modernization was achieved in Oklahoma, South Dakota, Rhode Island, and South Carolina. Massachusetts enacted commercial lines deregulation. NAMIC provided testimony and advocated for passage in all these states.

Protecting Underwriting Tools (Insurance Scoring and C.L.U.E.) In 2004, at least 43 bills have been introduced in 27 states dealing with insurance scoring. Legislation based on the NCOIL model was adopted in Colorado, Iowa, and Tennessee. Twenty states have enacted legislation based on the NCOIL credit model. At least 13 bills were introduced in 11 states to restrict adverse actions or premium increases based on loss-history reports. Some proposals also prohibit adverse actions based on "simple inquiries" related to coverage. Only Utah and Wyoming have enacted legislation this year restricting the use of these reports.

Tort Reform (ALEC-approved NAMIC model, The Fair Notice and Market Stability Act) Earlier this year the American Legislative Exchange Council (ALEC) approved the NAMIC-drafted Fair Notice and Market Stability Act. If passed, a plaintiff could not enforce a judgment, and perhaps not even prosecute a multi-state class, in a state whose laws differed from the state where the lawsuit was filed.

Four additional issues were approved for state legislative advocacy in 2005:

Asbestos Reform-Priority of Claims. Recently the American Legislative Exchange Counsel (ALEC) adopted the Asbestos Claims Priorities Model Act that would create an inactive docket. Asymptomatic plaintiffs who meet filing rules that require specific medical proof from appropriate medical personnel may have their claims placed on an inactive docket. The case may be removed from that docket and set for trial only if the plaintiffs can prove that they have an illness that is related to asbestos exposure. The statute of limitations is tolled while cases are on inactive docket status, protecting the rights of exposed asymptomatic individuals. The Act also prohibits "venue shopping" by requiring that claims must be filed in the jurisdiction where the primary harm of exposure occurred.

Farm Mutual Modernization. In 2003, NAMIC staff helped the Indiana farm mutual industry revise its governing statute. The bill allowed for new geographic territory for farm mutuals and eliminated outdated, sometimes contradictory sections of the code. It is anticipated that Tennessee and Montana will pursue similar legislation in 2005.

NCOIL Market Conduct Model. In July, NCOIL adopted a revised version of the Market Conduct Model Law. NAMIC was very involved in the creation and adoption of the model by NCOIL. It takes a significant step toward reform by creating targeted exams, requiring states to submit an exam budget and lays out a framework for states to conduct market analysis. Still, the model requires changes to the data collection, fees, scope of exam, and due process sections. Most critically, language that expressly creates a self-evaluative privilege must be included. Incorporating these provisions will be key to NAMIC advocacy of market conduct reform.

Standard Fire Policy. Seeking terrorism exclusions to the standard fire policy continues to be an area of industry effort. NAMIC has been working with others in the industry to seek changes in the states, and this effort will continue in 2005. Twenty-eight states have the standard fire policy by statute, and as of October 2004, eight states have adopted exclusions.

NAMIC state affairs managers will execute strategies with NAMIC's state trade partners to seek adoption in targeted states.