Health, Long-Term Care & Health Retirement Insurance Issues
Point Clear Alabama, November 18, 2012— The NCOIL Executive Committee today unanimously approved the development of a model law aimed at improving notification disclosures relating to discontinued insurance plans. The development of the model was approved by the NCOIL Health, Long-Term Care and Health Retirement Committee at the Annual Meeting on November 17th.
International Insurance Issues
Troy, New York, July 19, 2012 – On July 15, the NCOIL Executive Committee—looking to protect state regulation in a growing world economy—moved to strengthen state legislators’ role in U.S. trade talks. After more than a year of dialogue with United States Trade Representative (USTR) officials and other key parties, lawmakers at the NCOIL Summer Meeting adopted a resolution that highlights legislators’ now-limited opportunities to comment, asserts the importance of state legislator input, and calls for greater transparency, as appropriate, in trade negotiations.
Life Insurance & Financial Services
Burlington, VT, July 15, 2012 – In an effort to stay abreast of recent developments, the NCOIL Executive Committee today unanimously adopted an amended Model Unclaimed Life Insurance Benefits Act. The model—previously adopted in November 2011—was approved by the NCOIL Life Insurance & Financial Planning Committee after prolonged and spirited debate on July 13 at a special working session.
Biloxi, MS, February 26, 2012 – NCOIL today endorsed two model regs—developed by the North American Securities Administrators Association (NASAA) and National Association of Insurance Commissioners (NAIC)—designed to advance life insurance and annuity consumer protections by curbing the use of misleading senior-specific sales titles. Unanimous approval of a Resolution in Support of Regulating the Use of Senior-Specific Certifications and Professional Designations builds on lawmakers’ goal of accountability, transparency, and disclosure in insurance markets.
Point Clear, Alabama, November 18, 2012—After arduous dialogue that extended for nearly 18 months, NCOIL unanimously adopted a Certificates of Insurance Model Act on November 18 that seeks to clarify the rules for using controversial policy summaries. Consideration of the model—through numerous conference calls and special sessions—featured heated exchanges between lending and property-casualty industry representatives over whether certificates are “informational only.” Clearing the way for Committee adoption was the lending industry’s withdrawal of its contentious amendments—which were taken off the table with the understanding that legislators would seriously consider new lender revisions to an NCOIL insurance binder model act.
Point Clear, Alabama, November 18, 2012—Lawmakers at the NCOIL Annual Meeting kicked off their review of the title insurance market and committed to exploring possible model legislation in 2013. The special November 16 panel discussion held by the Property-Casualty Insurance Committee responded to strong legislator interest in the issue at the Summer Meeting and focused on cost and competition concerns, among other things.
Burlington, Vermont, July 15, 2012 – Following hours of debate, NCOIL legislators overwhelmingly adopted a model law to protect lenders from risks associated with inadequate or non-existent insurance coverage. The Model Act Regarding Use of Insurance Binders as Evidence of Coverage, adopted by the Executive Committee on July 15, would keep insurance binders in force until a policy is issued or cancelled by an insurer. Adoption of the model—an outgrowth of NCOIL discussion over certificates of insurance—cleared the way for debate on new certificates language that aims to curb fraud and misuse.
Burlington, Vermont, July 15, 2012 – Legislators meeting here on July 13 took a controversial step toward regulating financial transactions between third parties and plaintiffs in bodily injury and other litigation. The Property-Casualty Insurance Committee—after hearing calls for fair treatment and a level playing field—deferred until November a draft Consumer Legal Funding Model Act that looks to protect consumers receiving money from lenders unaffiliated with a case. The proposal was featured at the July 12 through 15 Summer Meeting.
Troy, New York, March 1, 2012 – On February 26, lawmakers at the NCOIL Spring Meeting in Biloxi, Mississippi, voted unanimously to explore a new statutory approach to address how policyholders, such as contractors and real estate developers, prove they have insurance to third parties like potential employers and lenders. The Property-Casualty Insurance Committee will meet via conference call over the next several months to draft a proposal for Summer Meeting review that could work in concert with an already-introduced Certificates of Insurance Model Act and could focus on the challenges that lenders face when verifying coverage. The decision, which responds to very vocal concerns expressed by property-casualty insurance and lending industry representatives, aims to ensure that the original purpose of the existing model—to stem fraud and misuse—remains intact.
Point Clear Alabama, November 18, 2012— At its 2012 National Meeting the National Conference of Insurance Legislators (NCOIL) raised grave concerns about draft model legislation being considered by the Multistate Tax Commission (MTC) in conjunction with its Non-Income Taxpayer Project (the Project). The model, scheduled to be considered at the MTC’s December meeting, would apply regular state corporate income taxes to the income from partnerships and disregarded entities for which insurers have more than fifty percent ownership. NCOIL will work to develop a letter of opposition to the model to send to the MTC.
Burlington, VT, July 15, 2012 – Here today, the National Conference of Insurance Legislators reaffirmed support of efforts to update state producer licensing requirements by adopting a Resolution Urging Producer Licensing Modernization. The resolution is one in a history of NCOIL endeavors to promote needed uniformity in producer licensing, following a 2005 Producer Compensation Disclosure Model Amendment to the Producer Licensing Model Act and a resolution In Support of the NAIC Producer Licensing Model Act adopted in 2000.
Washington, DC, January 10, 2012 – NCOIL leaders convening in Mississippi next month will host an interactive dialogue to discuss and respond to a forthcoming Federal Insurance Office (FIO) report on how to modernize U.S. insurance oversight. The Spring Meeting State Leaders’ Roundtable on FIO will take place only weeks after FIO is expected to issue its report and recommendations.