Dodd-Frank, National Catastrophe Fund, Flex-Rating Regulatory Improvement Among Topics For Consideration at March 4-6 National Conference of Insurance Legislators (NCOIL) Spring Meeting

A national catastrophe fund and model legislation relating to flex-rating regulatory improvement are among the proposals slated for consideration at the National Conference of Insurance Legislators (“NCOIL”) Spring Meeting in Washington D.C., scheduled this year from March 4 through 6.  To view complete Meeting information, including a tentative agenda, click here. 

With national insurance industry focus on state-based surplus lines reform mandated by the Non-admitted and Reinsurance Reform Act (“NRRA”) in Title V of the Dodd-Frank Act of 2010, NCOIL’s Spring Meeting also will offer several forums on the topic, highlighted by a March 5 roundtable discussion entitled “Dodd-Frank Act:  What Impact on the States?”

At the March 6 Property-Casualty Committee (“Committee) meeting, NCOIL members will review several models that were deferred from the November 2010 Annual Meeting due to time constraints (click on the hyperlinks below to access complete information on each referenced Model):

• The NCOIL Natural Disaster Catastrophe Fund Model Act would create a fund aimed at helping a state maintain a viable and orderly insurance market in the event of a major natural disaster.
• The NCOIL Model Act Regarding the Use of Insurance Claims History Information in Homeowners and Personal Lines Residential Property Insurance would ban adverse actions based solely on previous property-owner experience and set various other insurer restrictions on use of claims data. The Model also establishes insurer filing and disclosure requirements.
• The NCOIL Property/Casualty Flex-Rating Regulatory Improvement Model Act would establish a 12 percent flex-band, within which an insurer can file rate changes on an expedited basis during any 12-month period. The band would apply to aggregate statewide rate increases or decreases. This proposed bill is intended for use in jurisdictions with more restrictive rating-filing and review systems.

The Property-Casualty Committee will consider and take a final vote on the proposed Model Act Regarding Motor Vehicle Crash Parts and Repair, sponsored for discussion by Tennessee General Assemblyman Charles Curtiss.  The draft Model would require disclosure and consent before a crash part is repaired or replaced; set ground rules for insurers to specify aftermarket parts; require lasting, visible labels on parts; and promote accountability. 

A proposed amendment to this Model, sponsored by Rhode Island State Representative Brian Kennedy, would add language creating a presumption that a certified aftermarket part is capable of restoring a vehicle to pre-loss condition.  Other amendments sponsored by Michigan State Representative Barb Byrum would address insurer liability and specification of aftermarket parts, among other issues.

Additional agenda items to be taken up by other NCOIL Committees are:

• Trucking/courier workers’ compensation coverage
• U.S. trade policy and state preferred drug lists
• Healthcare balance billing
• Religious healthcare sharing ministries regulation

Materials that have been submitted in accordance with the NCOIL 30-day deadline Rule may be voted on or discussed during the Meeting.  Documents that have not been submitted in accordance with the deadline would require a two-thirds vote of an NCOIL committee prior to consideration, followed by a separate two-thirds vote for adoption.  Documents must have a legislative sponsor and may only be moved for adoption by a Committee member.

Any documents approved by a committee at the NCOIL Spring Meeting could be considered by the NCOIL Executive Committee at the same meeting.

Should you have any questions or comments, please contact Colodny Fass.