National Conference of Insurance Legislators 2013 Spring Meeting Materials and Information

 

The National Conference of Insurance Legislators (“NCOIL”) 2013 Spring Meeting is scheduled for March 8-10, 2013, in Washington, D.C. 

For complete meeting information, click here.

(Click on the hyperlinks in boldface below to access model act drafts and other specified documents).

Legislators will consider proposals on the following key issues during the meeting:

• health exchange navigators
• opioid abuse
• consumer legal funding
• insurance binders
• prudential oversight of insurance
• farm laborer workers’ compensation
• repackaged drugs/physician dispensing
• workers’ comp for volunteer firefighters
• committee voting privileges
• mental health parity

HEALTH, LONG TERM CARE & HEALTH RETIREMENT ISSUES COMMITTEE

LICENSING OF EXCHANGE NAVIGATORS

On March 8, the Committee will consider a proposed Resolution Regarding Health Benefit Exchange Navigator Programs, sponsored by Sen. Carroll Leavell (NM).  The resolution calls on states to establish regulation ensuring that exchange navigators mandated by the Affordable Care Act (ACA) are qualified to assist the public and are subject to enforcement by an insurance department when necessary. 

OPIOID ABUSE

During a special March 8 meeting of the Workers’ Compensation Insurance and Health, Long-Term Care & Health Retirement Issues Committees, legislators will work to develop a model law to address opioid-related concerns, including costs.  The Committees, as per discussion at the 2012 Annual Meeting, will hone in on recent Kentucky legislation enhancing the state’s prescription drug monitoring program (known as KASPER), among other purposes, as well as discuss prescription and utilization reform. 

 

PROPERTY-CASUALTY INSURANCE COMMITTEE

CONSUMER LEGAL FUNDING

On March 9, the Committee will consider two proposals to regulate third-party lending to consumers engaged in legal action.  A Consumer Legal Funding Model Act, sponsored by Rep. Charles Curtiss (TN), and a substitute Civil Justice Funding Model Act, sponsored by Sen. Neil Breslin (NY), both would allow the use of legal funding-subject to various contract disclosures, including of a consumer’s right of rescission; a ban on referral fees; guidelines for distributing proceeds; attorney requirements, including acknowledgement of the financing agreement; and penalties and enforcement.

The models differ regarding establishing a timeframe for assessing fees, requiring use of arbitration, and allowing simultaneous involvement of multiple funding companies, among other provisions.

INSURANCE BINDERS

During a special March 10 working session, as well as during a March 9 Committee meeting, legislators will consider proposed amendments to an NCOIL Model Act Regarding Use of Insurance Binders as Evidence of Coverage.  Adopted on July 15, 2012, the model would keep insurance binders in force until a policy is issued or cancelled by an insurer.  The draft amendments, sponsored for discussion by Rep. Matt Lehman (IN), would (1) require the deliverance of a policy or binder no more than 30 days after certain specified events; (2) require-if a policy is not delivered by that time-that an insurer deliver a binder within five days of a lender/insured request; and (3) establish that a binder is official proof of coverage in a civil action or proceeding.   

The insurance binder model was developed in response to lending-industry concerns over “information only” disclosure requirements in a proposed Certificates of Insurance Model Act.  At the 2012 Annual Meeting, the Committee agreed to consider the proposed binder-model amendments in lieu of lender revisions to the certificates model.

 

STATE-FEDERAL RELATIONS COMMITTEE

FEDERAL PRUDENTIAL OVERSIGHT OF CERTAIN INSURERS      

On March 8, the Committee will consider a proposed Resolution Regarding the Prudential Regulation of Insurance, sponsored by Sen. Travis Holdman (IN).  The resolution highlights the success of state-based financial oversight and calls on the Federal Reserve’s Board of Governors to revise its proposed regulations applying consolidated banking regulation to insurers that also happen to be savings and loan holding companies, bank holding companies, or those designated as systemically important by the Financial Stability Oversight Council.  The resolution, among other things, asserts that state prudential regulation should be the starting point when the Federal Reserve measures the health of the insurance element of a holding company.  The resolution, because it was submitted after the 30-day deadline, will require a two-thirds Committee vote for consideration, followed by a separate two-thirds vote for adoption.

 

WORKERS’ COMPENSATION INSURANCE COMMITTEE

FARM WORKER COVERAGE

On March 9, the Committee will consider possible approaches for an NCOIL model law that would establish rules for providing workers’ compensation insurance to farm laborers.  As discussed by the Committee at the 2012 Annual Meeting, the model aims to promote consistency in laws and regulations that now vary widely from state-to-state.  Items of interest could include, for instance, whether to exempt farms that have below a certain threshold of employees or payroll amounts, as well as what types of agricultural activities would be defined as “farm labor.”   

REPACKAGED PHARMACEUTICALS/PHYSICIAN DISPENSING

On March 9, the Committee will consider a proposed Model Act on Workers’ Compensation Repackaged Pharmaceutical Reimbursement Rates, co-sponsored for discussion by Reps. Bill Botzow (VT) and Charles Curtiss (TN).  The draft model, which is based on a recently-revised Tennessee rule, would tie reimbursement rates for repackaged drugs to the original manufacturer’s average wholesale price (AWP).

VOLUNTEER FIREFIGHTER COVERAGE

On March 9, the Committee will consider a proposed Model Act on Workers’ Compensation Coverage for Volunteer Firefighters, sponsored for discussion by Rep. Bill Botzow (VT).  The draft model would establish a state definition of “public employment” that affords eligibility for workers’ compensation insurance benefits when a volunteer firefighter performs firefighter-related duties that are not directly related to emergency response.  The model, which is based on provisions in Vermont law, also includes a drafting note identifying various state approaches to fund volunteer firefighter coverage.

 

ARTICLES OF ORGANIZATION & BYLAWS REVISION COMMITTEE

COMMITTEE VOTING PRIVILEGES

On March 9, the Committee will consider proposed bylaws changes that would clarify voting privileges for state insurance committee chairs, as well as for other NCOIL legislators. 

REVIEW OF NCOIL MODEL LAW FOR SUNSET/RE-ADOPTION

As per NCOIL bylaws, which require NCOIL committees to review their model laws every five years, legislators will consider the following document at the Spring Meeting.

 

Health, Long-Term Care & Health Retirement Issues Committee

MENTAL HEALTH PARITY          

An NCOIL Mental Health Parity Model Act offers legislators a template from which they could draft legislation specific to the concerns of their respective states related to coverage for mental illness.  The NCOIL Health Committee has deferred its review of the model since the 2012 Spring Meeting in order to consider possible impacts of the Affordable Care Act (ACA). Legislators originally adopted the model in November 2001 and readopted it in February 2004 and July 2006. 

 

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