Indianapolis - At least six states are likely to advance rate modernization initiatives this year, a legislative preview prepared by the National Association of Mutual Insurance Companies (NAMIC) reveals.
NAMIC Senior State Advocacy Director Neil Alldredge said bills favoring more competitive rating practices, which are NAMIC's top state legislative priority, are expected in Connecticut, Hawaii, Indiana, Iowa, Massachusetts and New York.
Other issues identified in the NAMIC preview include credit-based insurance scoring and security breach legislation.
Alldredge predicted that as many as 40 states may introduce insurance scoring bills this year. While a few states may continue efforts to prohibit insurance scoring outright, most bills are likely to seek restrictions where individuals may be involved in "extraordinary life circumstances." NCOIL may amend their model legislation to capture the life circumstances restriction as well.
Last year, 21 states enacted security breach notification laws, Alldredge noted, making it one of the most active types seen across the country.
"We anticipate more states looking at this issue this year since members of Congress have so far failed to enact a law creating uniform national standards," Alldredge said. "The more states that enact such legislation, the more they are likely to enact provisions different from each other. This is problematic for businesses doing business in multiple states."
Alldredge said last year's hurricane season is likely to cause more attention being focused this year on stronger building codes. He noted that NAMIC already has joined an industry coalition seeking a statewide building code in Mississippi and will be working to eliminate the Panhandle exemption in the Florida building code.
Other emerging issues include local government emergency service fees and laws governing event data recorders. NAMIC advocates also will be working on bills correcting court decisions viewed as misguided by the industry, no-fault laws and workers' compensation reforms.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access