CLICK HERE – NCOIL 2020 “SUMMER” MEETING PRESENTATIONS & MATERIALS

For Immediate Release
September 10, 2020
Contact: Cara Zimmermann
(732) 201-4133

NCOIL HIGHLIGHTS LIFE INSURANCE AWARENESS MONTH
Urges the Importance of Protecting Loved Ones

Manasquan, NJ – The National Council of Insurance Legislators (NCOIL) highlights September as Life Insurance Awareness Month. This campaign has been designated to serve as a reminder to families of the value of life insurance and encourage them to perceive life insurance as an investment into their families.

NCOIL President, IN Rep. Matt Lehman stated, “Now more than ever, Americans need to be reminded to include life insurance in their financial plans. The COVID-19 pandemic has created devasting outcomes for many. Families without life insurance could experience not only immeasurable emotional pain but also severe financial deprivation.”

NCOIL CEO, Commissioner Tom Considine said, “This year has made clear that unexpected events are part of life as we know it. Two common perceptions surrounding life insurance are that it is expensive and that it is not needed. Many people can be insured for the price of a daily cup of coffee. Talk to your financial representative for a quote and work within your budget for a plan that is best for you. People of all ages are falling victim to COVID and everything can change in an instant. Everyone should understand the benefits of life insurance and the risks of going without it.”

Life happens created and coordinates the Life Insurance Awareness Month (LIAM) campaign every September since 2004. Information and resources about Life Insurance Awareness Month can be found at https://lifehappenspro.org/life-insurance-awareness-month.

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NCOIL is a national legislative organization with the nation’s 50 states as members, represented principally by legislators serving on their states’ insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy-five years ago, and to serve as an educational forum for public policymakers and interested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues.

For Immediate Release
August 27, 2020
Contact: Cara Zimmermann
(732) 201-4133

NCOIL HEALTH INSURANCE AND LONG-TERM CARE ISSUES COMMITTEE HOLDS VIRTUAL INTERIM MEETING

Discussed Short Term Limited Duration Insurance Model Act; Health Care Sharing Ministry Registration Model Act Withdrawn; Discussed Air Ambulance Subscription Membership Products; Started Process of Developing Telemedicine Model Act

Manasquan, NJ – The National Council of Insurance Legislators (NCOIL) Health Insurance and Long-Term Care Issues Committee (Committee) held an interim virtual meeting on August 21st.  The Committee is chaired by New York Assemblywoman Pamela Hunter and vice-chaired by Arkansas Representative Deborah Ferguson. The purpose of the interim meeting was to conduct a final discussion on the NCOIL Short Term Limited Duration Insurance Model Act before a vote is taken during the NCOIL “Summer” Meeting in September; determine the next steps for the NCOIL Health Care Sharing Ministry Registration Model Act; discuss air ambulance subscription membership products; and begin the process of developing an NCOIL Telemedicine Model Act.

NCOIL President Matt Lehman (Rep. – IN) said, “I commend Chair Hunter and Vice-Chair Ferguson for tackling critical health insurance issues. This Committee always has a very packed agenda. It is even more important now with our nation battling this pandemic that NCOIL acts in a timely manner to discuss solutions that can provide Americans with the security and comfort they need.”

Chair Hunter stated, “I want to thank everyone who participated in the meeting. I especially want to thank Indiana Representative Martin Carbaugh for his work as sponsor of two Models on the agenda. It was important to have one more discussion on the NCOIL Short Term Limited Duration Model Act before the Committee takes a vote in September at the ‘Summer’ Meeting, and to conduct other business. The Committee still has a lot of work to do on other issues but I am confident that we will continue to make progress in Alexandria.”

“I am particularly looking forward to continuing the discussions regarding the development of an NCOIL Telemedicine Model Act and I would be proud to sponsor such a Model. The use of telemedicine has grown rapidly throughout this global health emergency and there appears to be almost unanimous agreement that once we finally return to a sense of normalcy, the expansion of telemedicine is here to stay,” concluded Chair Hunter.

The NCOIL Healthcare Sharing Ministry Registration Model Act was withdrawn from consideration by Representative Carbaugh. The Model was extensively discussed starting last July and has garnered a wide range of opinions.

“After having discussed the Model at three NCOIL national meetings and hearing further thoughts during this virtual meeting, it became clear that it was not going to be possible to obtain a consensus as to what should or should not be in the Model,” stated Rep. Carbaugh. “I remain passionate about the topic and may end up introducing another Model down the road, but for now it is best for the Committee to focus on other issues.”

There were over 100 participants on the interim virtual meeting which included 16 legislators from 13 states. In addition to the robust dialogue from legislators, NCOIL heard perspectives from a wide array of interested parties including the Health Benefits Institute, Horizon Government Affairs, the American Medical Association (AMA), America’s Health Insurance Plans (AHIP), the Alliance for Healthcare Sharing Ministries, and others.

Additionally, Chris Myers, Executive Vice President of Reimbursement & Strategic Initiatives at Air Methods Corporation, provided a presentation on the topic of Air Ambulance Subscription Membership Products. This topic will continue to be discussed at future NCOIL national meetings.

Vice-Chair Ferguson said, “I want to echo Chair Hunter’s remarks and I look forward to continuing discussing these issues in a few weeks. As a dentist in my career outside of the legislature, the issues discussed in the Health Committee are topics that I am passionate about and I genuinely feel that the work we are doing changes lives in a beneficial way.”

NCOIL CEO, Commissioner Tom Considine said, “This call demonstrates that NCOIL Model Bills do not always result in Model Acts; sometimes the process demonstrates that an issue is not ripe for a Model’s passage. Additionally, despite unique circumstances for the NCOIL ‘Summer’ Meeting next month, we already are seeing a great turnout of both in-person and virtual registrants. We encourage all who cannot travel to the in-person meeting in Alexandria due to health concerns to please participate virtually. Dialogue needs to continue between legislators and interested parties to accomplish the various goals NCOIL set out to tackle in 2020.”

The video recording from the meeting is posted on the NCOIL website and can be viewed here:

All material discussed during the meeting can be viewed here: https://ncoil.org/ncoil-healthinsurance-long-term-care-issues-committee-interim-meeting-august-21-2020-100-pm-230-pmest/

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NCOIL is a national legislative organization with the nation’s 50 states as members, represented principally by legislators serving on their states’ insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy-five years ago, and to serve as an educational forum for public policymakers and interested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues.

For Immediate Release
July 28, 2020
Contact: Cara Zimmermann
(732) 201-4133

NCOIL PROPERTY & CASUALTY INSURANCE COMMITTEE HOLDS VIRTUAL INTERIM MEETING

Rowland Takes Reigns as New Committee Chair; Introduced Distracted Driving Model Act; Received Update on NAIC Casualty Actuarial & Statistical Task Force; Discussed Five NCOIL Models Up for Re-Adoption

Manasquan, NJ – The National Council of Insurance Legislators (NCOIL) Property & Casualty Insurance Committee (Committee) held an interim conference call meeting on July 24th. The purpose of the interim meeting was to discuss the first draft of the NCOIL Distracted Driving Model Act, and to provide an update on the National Association of Insurance Commissioners (NAIC) Casualty Actuarial and Statistical (C) Task Force’s (CASTF) Regulatory Review of Predictive Models White Paper.

NCOIL President Matt Lehman (Rep. IN) appointed Kentucky Representative Bart Rowland as Chair of the Committee. The prior Chair, Georgia Representative Richard Smith was recently named Chair of the Georgia House Rules Committee, a position that comes with enormous responsibility and time demands. In stepping down as Chair of the NCOIL P&C Committee, Rep. Smith did not want the Committee to be held back at all due to his schedule.

NCOIL President Lehman, said, “Richard Smith is a great man and has been a longtime supporter and active member of NCOIL. Richard will continue to stay involved with NCOIL and in fact participated in this meeting. When Richard notified us of his decision, we reflected on an immediate succession plan and Bart Rowland is the person that sprung to mind. Bart has been an NCOIL leader for years and is universally respected in the organization. He has my full confidence and support.”

“Rep. Smith has been a wonderful leader of the P&C Committee in past years to present and while we are sad that he will not be as involved with us this year, we wish him all the best on his new assignment as Chair of the GA House Rules Committee. We are very pleased that Rep. Rowland is up for the task and we feel that he is exactly the type of leader NCOIL needs to take over this position,” stated NCOIL CEO, Commissioner Tom Considine. “Bart has been a ‘go to’ leader here at NCOIL for as long as I’ve been here,” Considine concluded.

The Committee received an update on the work of the NAIC’s Casualty Actuarial and Statistical (C) Task Force’s (CASTF). Specifically, CASTF’s work in developing a Regulatory Review of Predictive Models White Paper. This was a follow-up from the interim meeting of the NCOIL Executive Committee on July 1st during which the Committee adopted a Resolution, sponsored by California Assemblyman Ken Cooley, NCOIL Vice President, “Urging the NAIC To Refrain from Intruding on the Constitutional Role of State Legislators” in response to the work of CASTF. However, while the Committee did adopt the Resolution, it was agreed upon that the Resolution would be held pending further discussion with the NAIC in the hope that the work of the CASTF might be altered.

Considine provided a briefing during this meeting that there have been officer level discussions on the issue, but more need to occur.

The Committee also introduced and discussed the first draft of an NCOIL Distracted Driving Model Act, sponsored by Ohio Senator Bob Hackett and Asm. Cooley. Additionally, Cathy Chase, President of Advocates for Highway & Auto Safety, provided a presentation on the issue.

Asm. Cooley stated, “It is vital that we create this type of legislation for states to use as guidance as they develop legislation beyond the no-texting ban. Developing the appropriate level of penalties is critical. We hope that everyone will get behind this effort in order to improve traffic safety, reduce motor-vehicle related injuries and fatalities, strengthen enforcement, and signal to public and app developers what ‘driver safety’ capabilities their products should have.”

Sen. Hackett said, “I echo Asm. Cooley’s comments. Distracted driving has become a widespread, deadly problem in our country. I think the first draft of the Model is at a great starting point and it is our goal as sponsors to move this forward in a timely manner and continue the drafting discussions until we have it right. The consequences of this Model can actually be life or death. The research shows that the consequence to distracted driving is death more often than not. We have the opportunity to change that outcome as state legislators.”

Additionally, the Committee provided the opportunity for discussion on the five (5) NCOIL Model Laws scheduled for re-adoption at the upcoming NCOIL “Summer” Meeting in September. Those Models are: Post-Assessment Property and Liability Insurance Guaranty Association Model Act (originally adopted November 2007; amended March 2015); Model Act Regarding Medicaid Inception of Insurance Payments (originally adopted November 2014; amended March 2015); Storm Chaser Consumer Protection (adopted July 2005); Model Act Regarding Use of Credit Card Information in Personal Insurance (originally adopted November 2002; re-adopted November 2005; amended 2009; re-adopted November 2015); and Model Act to Regulate Insurance Requirements for Transportation Network Companies and Transportation Network Drivers (adopted July 2015).

Chair Rowland stated, “It is an honor to be appointed by my colleagues to Chair the NCOIL Property & Casualty Insurance Committee. As we all saw from the interim meeting, this Committee has a lot on the agenda for the upcoming ‘Summer’ Meeting and we are just beginning to dive into some of these issues as well as revisiting many important issues. I am humbled that NCOIL is allowing me to step up to this leadership role, and I was pleased with the initial discussions during the interim meeting last week. I urge all parties to keep the conversations going in order to develop high quality public policy for states to consider adopting. That is always the goal of NCOIL public policy.”

There were over 100 participants on the interim virtual meeting which included 17 legislators from 15 states. In addition to the robust dialogue from legislators, NCOIL heard perspectives from a wide array of interested parties including the National Association of Mutual Insurance Companies (NAMIC), Uber, the National Conference of Insurance Guaranty Fund (NCIGF), the American Property Casualty Insurance Association (APCIA), the Independent Insurance Agents and Brokers of American (IIABA),

NCOIL notified all meeting attendees during the meeting upon realizing that there was a problem with Zoom access, stating that it had pre-arranged to have a 500-participant capacity and this function was not automatically enabled by Zoom. “That was awful, just awful,” stated Considine. “We’ll refund double anyone’s registration fee who signed up in advance but could not get through.”

Please reach out to Cara Zimmermann [email protected] or Cindy McLavish [email protected] at the NCOIL National Office if you registered for the interim meeting and could not get in through Zoom.

Minutes and the video recording from the meeting will be posted on the NCOIL website in the next week.

All material discussed during the meeting, including the draft of the Distracted Driving Model, can be viewed here: https://ncoil.org/ncoil-property-casualty-insurance-committee-interimconference-call-july-24-2020-100-pm-230-pm-est/

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NCOIL is a national legislative organization with the nation’s 50 states as members, represented principally by legislators serving on their states’ insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy-five years ago, and to serve as an educational forum for public policymakers and interested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues.

For Immediate Release
July 2, 2020
Contact: Cara Zimmermann
(732) 201-4133

NCOIL EXECUTIVE COMMITTEE ANNOUNCES IN-PERSON NATIONAL MEETING; TAKES OTHER ACTIONS
Adopted Proposed Articles of Organization and Bylaws Amendments, & Adopted Resolution Urging NAIC to Refrain from Intruding on Constitutional Role of State Legislators

Manasquan, NJ – The National Council of Insurance Legislators (NCOIL) Executive Committee, Chaired by NCOIL President Matt Lehman (Rep. – IN), held an interim conference call meeting on July 1st, announcing it would move forward with its “Summer” National Conference. The event, which had been scheduled for Jersey City, NJ this month, will now be held in Old Town, Alexandria, VA in September.

Additionally, the group passed proposed amendments to the NCOIL Articles of Organization & Bylaws that the NCOIL Bylaws Committee adopted earlier in June. A discussion continued from one held by the NCOIL Property & Casualty Insurance Committee at its most recent meeting this past March in Charlotte, NC regarding the National Association of Insurance Commissioners (NAIC) Casualty Actuarial and Statistical (C) Task Force’s (CASTF) draft Regulatory Review of Predictive Models White Paper (White Paper). This discussion included the consideration and passage of a Resolution urging the NAIC to refrain from intruding on the Constitutional role of state legislators.

Chair Matt Lehman stated, “We thank all who joined and participated on the call. These interim calls are very important, especially in the circumstances we are in. Since the NCOIL ‘Summer’ Meeting is rescheduled two months later than its usual July meeting, we must be sure to continue having open communication and continuous dialogue between the NCOIL policy committees, consumers, regulators, the insurance industry, and other interested parties in the meantime in order to efficiently address timely issues.”

NCOIL Vice President, CA Asm. Ken Cooley said, “As sponsor of the NCOIL Resolution urging the NAIC to refrain from intruding on the Constitutional role of state legislators, I want to say thank you to my colleagues for engaging in a lively discussion on the issue. The Resolution adopted by the NCOIL Executive Committee is another important action taken by NCOIL to protect and uphold state legislators’ jurisdiction over insurance. We continue to hope we can resolve the disagreement through ongoing dialogue with the NAIC.”

“Regrettably, some have tried to twist this Resolution with contentions that it is suborning indirect racial discrimination. To be clear, the purpose of this Resolution is to maintain the proper constitutional jurisdiction of state legislatures over the significant public policy issues related to insurance. NCOIL stands firmly in its belief that racial discrimination in any and every form is wrong,” concluded NCOIL’s President Lehman.

There were over 70 participants on the interim call which included 26 legislators from 18 states. NCOIL heard from the perspectives of the National Association of Mutual Insurance Companies (NAMIC), Center for Economic Justice, former Illinois Director Nat Shapo, and others.

Arizona State Senator David Livingston from LD22, Chair of the NCOIL Articles of Organization & Bylaws Revision Committee said, “We had a very robust discussion on the proposed amendments back in June on the interim call. The amendments better reflect the situation we are in and may potentially face in the future. In the event that NCOIL cannot physically meet, NCOIL needs to be able to carry on. The work we do is too important to come to a halt during these unprecedented times.”

NV Asw. Ellen Spiegel, Vice-Chair of the NCOIL Articles of Organization & Bylaws Revision Committee said, “I want to echo Sen. Livingston’s comments. The amendments to the existing NCOIL model make it stronger and I commend the Executive Committee for adopting these changes.”

NCOIL CEO, Commissioner Tom Considine stated, “This call was a great example of how public policy should be made; legislators hearing from interested parties and sharing views with one another in a spirited, respectful bipartisan public debate. We are really looking forward to seeing all who are able to attend the ‘Summer’ Meeting in September.”

Minutes from the call will be posted on the NCOIL website in the next week.

NCOIL Articles of Organization & Bylaws Amendments can be viewed here.

NCOIL Resolution Urging the NAIC to Refrain from Intruding on the Constitutional Role of State Legislators can be viewed here.

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NCOIL is a national legislative organization with the nation’s 50 states as members, represented principally by legislators serving on their states’ insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy-five years ago, and to serve as an educational forum for public policymakers and interested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues.

For Immediate Release
June 26, 2020
Contact: Cara Zimmermann
(732) 201-4133

NCOIL HIGHLIGHTS NATIONAL INSURANCE AWARENESS DAY
Urges Businesses and Consumers to Review Insurance Policies

Manasquan, NJ – The National Council of Insurance Legislators (NCOIL) highlights June 28th as National Insurance Awareness Day. This day has been designated to serve as a reminder to business owners to review their insurance policies and ensure they have the coverage they need.

NCOIL President, IN Rep. Matt Lehman stated, “It is extremely important, particularly during these unprecedented times, that people understand their coverage, including a policy’s exclusions. As insurance legislators, many of us who work as insurance professionals outside of the political scene, it is our primary responsibility to work to protect consumers. There is no doubt that 2020 has been a challenging year for businesses across the country. All business owners, particularly small business owners, should make it a point to verify that they have the proper insurance coverage in place.”

NCOIL CEO, Commissioner Tom Considine said, “As with every hurricane season, the need to be prepared is especially important. The vast majority of Americans either do not have flood insurance or are not aware that their policy does not cover flood. In recognition of National Insurance Awareness Day, NCOIL is reminding business owners and consumers to take the time to talk to an insurance agent, review their insurance plans, or get a policy that offers the security needed to recover losses. The value of items can shift over time and situations can change, as we have all experienced in 2020.”

More information on National Insurance Awareness Day can be found here:

National Insurance Awareness Day 2020 – June 28

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NCOIL is a national legislative organization with the nation’s 50 states as members, represented principally by legislators serving on their states’ insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy-five years ago, and to serve as an educational forum for public policymakers and interested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues

For Immediate Release
June 4, 2020
Contact: Cara Zimmermann
(732) 201-4133

NCOIL WORKERS’ COMPENSATION INSURANCE COMMITTEE HAS INTERIM CONFERENCE CALL
Discussed Impact of COVID-19 on Workers’ Compensation Insurance Marketplace

Manasquan, NJ – The National Council of Insurance Legislators (NCOIL) Workers’ Compensation Insurance Committee, Chaired by Kentucky Representative Bart Rowland, held an interim conference call on May 29th to discuss the overall impact of COVID-19 on the workers’ compensation insurance marketplace. The discussion was highlighted by the efforts taken by several states to expand access to workers’ compensation coverage for COVID-19 to include all workers labeled “essential.”

Chair Bart Rowland (Rep. – KY) stated, “[t]hank you to all who participated on this call to discuss some very important and timely issues that our nation is facing. After listening to comments from both supporters and opponents of presumptions for COVID-19, NCOIL can better assess the situation going forward.”

“The interim conference call meeting was the highest attended teleconference meeting NCOIL has held since I’ve been here, or that is reflected in NCOIL’s records” stated Cmsr. Tom Considine, NCOIL CEO. “We had over 100 participants which included 18 legislators from 14 states, which is just terrific,” he continued. Minutes from the call can be found on the NCOIL website here.

“Of course, panelists had different views on the matter, which we expect when we have discussions like this at NCOIL. I feel that this was very beneficial, and the call gave the committee members much to consider. One thing most of us can agree on is that this virus is unlikely to go away soon and pressure is growing to help the employees of essential businesses, which naturally puts some attention on the workers’ compensation system,” Rowland concluded.

Consistent with NCOIL’s longstanding policy, panelists presented views from multiple perspectives on the issue. Speakers included: Jeff Eddinger, Senior Division Executive for the National Council on Compensation Insurance (NCCI); Mitch Steiger, Legislative Advocate at the California Labor Federation (CLF); Richard Marcolus, Chair of the New Jersey Council of Safety & Health (COSH); Dr. Robert Hartwig, Clinical Associate Professor in the Finance Department and Director at the Center for Risk and Uncertainty Management at the Darla Moore School of Business University of South Carolina; and Erin Collins, Vice President of State Affairs for the National Association of Mutual Insurance Companies (NAMIC).

NCOIL President, IN Rep. Matt Lehman stated, “The long-term economic impact of COVID-19 is currently unknown. NCOIL is dedicated to learning as much as it can in order to find the best solutions to the devastating effects of the virus. In the context of the workers’ compensation system, it is paramount that industry solvency is maintained and employees have benefits when they need them most.”

Considine said, “When issues like this arise, NCOIL is a great forum to help educate legislators from different states with similar goals by having a conversation to improve the quality of public policy. There is no question that there is a natural tug to want to provide compensation to essential workers who have fallen ill to COVID-19. The workers’ compensation system exists because of the risk of getting sick or injured on the job, but the illness or injury has to arise ‘out of the employment’ or in the ‘course of employment’ to be covered. The dilemma is twofold whether COVID meets either of those tests and whether the system can handle a pandemic. Congress and state legislature must best balance the interests of businesses, employees and insurers in making these policy choices.”

If you joined the call and would like to the chance to discuss any issues further, please reach out to NCOIL General Counsel Will Melofchik at [email protected].

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NCOIL is a national legislative organization with the nation’s 50 states as members, represented principally by legislators serving on their states’ insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy-five years ago, and to serve as an educational forum for public policymakers and interested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues.

For Immediate Release
May 28, 2020
Contact: Cara Zimmermann
(732) 201-4133

NCOIL APPLAUDS INTRODUCTION OF THE PANDEMIC RISK INSURANCE ACT
Also Urges Congress to Focus on Current Business Interruption Losses

Manasquan, NJ – The National Council of Insurance Legislators announced today that is applauds the introduction of the Pandemic Risk Insurance Act of 2020 (PRIA), which was formally introduced on Friday, May 22nd. NCOIL President, IN Representative Matt Lehman stated, “While NCOIL is conceptually supportive of PRIA, we will need further discussion together on the details. Also, while PRIA would provide a backstop for losses after its passage, it is imperative that Congress continue focusing on those current, mounting uninsured losses that fall outside business interruption and event cancellation policies’ protection.”

PRIA, sponsored by Rep. Carolyn Maloney (D, NY), would provide for a transparent system of shared public and private compensation for business interruption losses resulting from a pandemic or outbreak of communicable disease. The new legislation is pulling from lessons learned during the business interruption the country saw around the 9/11 terrorist attacks. PRIA would operate entirely prospectively, enabling businesses, professionals and associations to procure pandemic coverage in the future because insurers will not exclude it once a federal backstop is in place, much like terrorism insurance became available once the Terrorism Risk Insurance Act (TRIA) passed. PRIA would be triggered if industry losses exceed the $250 million threshold.

“We look forward to working with Congresswoman Maloney to make sure that there is not unlimited liability for the insurance industry. NCOIL agrees that it is important that the insurance industry participate in the PRIA system; however, it is imperative that any legislation not threaten the solvency of the industry or companies within it,” Lehman continued.

Following the tragedy of 9/11/2001, Congress moved in a way that addressed both the immediate crisis and a prospective solution by enacting both TRIA and the Air Transportation Safety and System Stabilization Act and included within it the Victims Compensation Fund (VCF). NCOIL urges a similar solution now for the legion of businesses and professionals who are suffering from unprecedented costs from the interruption of their businesses as well as the many associations who have had to cancel their events, virtually all of whom have an exclusion in their business interruption and event cancellation policies for communicable diseases.

Lehman concluded that “it is important that NCOIL remains part of the discussion with Congress since, among other things, any plan will involve the states’ role in maintaining insurance industry solvency”.

In the VCF it was necessary to construct an entire claims adjudication process. NCOIL believes this can be avoided for the current pandemic emergency. These claims, while contractually excluded, are not novel; they are the very type of claims that U.S. insurers have been adjudicating for over a century. In addition to PRIA, NCOIL suggests that a Congressional Act creating a COVID-19 Business Interruption & Cancellation Claims Fund (COVID Claims Fund) incorporate the usage of the insurance industry’s claims processing systems to handle claims processing for the Fund in order to ensure all claims are validated prior to payment, removing any that do not meet the established criteria.

NCOIL CEO, Commissioner Tom Considine said, “While the introduction of PRIA is a positive development to protect businesses, professionals, and associations from losses due to a future pandemic or outbreak of communicable disease, it is imperative that a COVID Claims Fund be enacted and set up so that those that have already been harmed by COVID-19 receive the help that they deserve. NCOIL’s communication with Congresswoman Maloney regarding PRIA will be vital in ensuring there is not crippling exposure for the insurance industry.”

Bill text for H.R. 7011, the Pandemic Risk Insurance Act of 2020, can be viewed below:
https://maloney.house.gov/sites/maloney.house.gov/files/PRIA%20bill%20text.pdf

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NCOIL is a national legislative organization with the nation’s 50 states as members, represented principally by legislators serving on their states’ insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy-five years ago, and to serve as an educational forum for public policymakers and interested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues

For Immediate Release
April 21, 2020
Contact: Cara Zimmermann
(732) 201-4133

NCOIL AND RUTGERS CENTER FOR RISK AND RESPONSIBLITY TO HOST WEBINAR TO DISCUSS LEGISLATIVE RESPONSES TO BUSINESS INTERRUPTION INSURANCE AND COVID-19

Manasquan, NJ – The National Council of Insurance Legislators (NCOIL) and the Rutgers Center for Risk and Responsibility at Rutgers Law School are sponsoring a webinar to discuss legislative responses to business interruption insurance and COVID-19 on Friday, April 24, at 1:00 p.m. Eastern time.

During this time of global crisis, the issue of business interruption insurance coverage for losses related to the outbreak of COVID-19 has been a constant in both headlines across the country and the NCOIL mailbox. Bills have been introduced in multiple state legislatures as well as Congress that would mandate coverage and would create backup funding mechanisms for insurers.

Legislation has been discussed or introduced in Louisiana, Massachusetts, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and South Carolina that would retroactively enact business interruption coverage into existing policies despite an absence of the physical damage required in property policies and/or express exclusions for communicable diseases in those policies.

NCOIL President, IN Rep. Matt Lehman, said, “We understand that the nation is facing unprecedented, urgent social and economic issues. NCOIL is working to ensure that sound public policy relating to COVID-19 is enacted to help resolve the impacts of the crisis. I look forward to speaking with my insurance legislator colleagues and business professionals from all over the country to discuss NCOIL’s opposition to this type of retroactive legislation and set forth NCOIL’s support for Congress to take action and enact legislation that would guard against future harm related to a pandemic or outbreak of communicable disease, and help those that have already been harmed by COVID-19.”

The webinar will cover business interruption insurance coverage issues, the legislative proposals, the reason for and the cost of proposals, and state and federal constitutional issues.

Participants will include NJ Asm. Lou Greenwald, NJ Assembly Majority Leader; IN Majority Leader Rep. Matt Lehman, NCOIL President; Jim Lynch, Chief Actuary and Senior VP of Research and Education at the Insurance Information Institute (III); and Jay Feinman and Adam Scales, Professors of Law at Rutgers Law School and Co-Directors of the Rutgers Center for Risk and Responsibility.

Distinguished Rutgers Law School Professor, Jay Feinman stated, “We at the Rutgers Center for Risk and Responsibility explore ways in which society makes choices about risk, its proper allocation, and compensation for the harm caused when risks materialize. Scholars at the Center are closely studying the crisis rising as a result of claims under these insurance policies. Businesses faced with huge and unexpected losses naturally turn to their insurance for compensation, and legislators who are looking to help businesses out see insurance as a vehicle for doing so.”

“NCOIL is pleased to host this webinar with the Rutgers Center for Risk and Responsibility, a nationally known center for insurance expertise. The timing of this webinar is critical as NCOIL has reached out to states and Congress to express concerns about retroactive insurance coverage legislation and to advocate for the creation of a COVID-19 Business Interruption & Cancellation Claims Fund (COVID Claims Fund),” stated NCOIL CEO, Commissioner Tom Considine.

“We urge a similar solution to the 9/11 Victims Compensation Fund enacted by Congress in 2001, now for the legion of businesses & professionals who are suffering from unprecedented costs from the interruption of their businesses as well as the many associations who have had to cancel their events, virtually all of whom have an exclusion in their business interruption and event cancellation policies for communicable diseases,” Considine concluded.

Please follow this link to register:
https://rutgers.webex.com/rutgers/onstage/g.php?MTID=e25985f1513ef0355998751d6dd1e4965

Please also visit the NCOIL COVID-19 Resource Page for information and updates on industry, state, and federal insurance-related initiatives relating to the outbreak of COVID-19: https://ncoil.org/ncoil-covid-19-resource-page/

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NCOIL is a national legislative organization with the nation’s 50 states as members, represented principally by legislators serving on their states’ insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy-five years ago, and to serve as an educational forum for public policymakers and interested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues.

For Immediate Release
April 6, 2020
Contact: Cara Zimmermann
(732) 201-4133

NCOIL COMMENTS ON FEDERAL LEGISLATION
The Preventing Credit Score Discrimination in Auto Insurance Act and The Catastrophe Loss Mitigation Incentive and Tax Parity Act of 2019

Manasquan, NJ – The National Council of Insurance Legislators (NCOIL), announced its opposition to a piece of federal insurance legislation today, while supporting an unrelated disaster mitigation bill. Commissioner Tom Considine, NCOIL CEO, wrote to Rep. Rashida Tlaib opposing H.R. 1756, the Preventing Credit Score Discrimination in Auto Insurance Act, as well as to Rep. Mike Thompson, Chair of the House Subcommittee on Select Revenue Measures, in support of H.R. 5494, the Catastrophe Loss Mitigation Incentive and Tax Parity Act of 2019.

H.R. 1756 seeks to ensure there is no unfair discrimination in automobile insurance underwriting. While the intent of the bill is noble, NCOIL believes there remains confusion and misinformation surrounding how and why insurers use certain factors to underwrite, such as credit information. The business of insurance is centered on predicting the level of risk an applicant or policyholder represents and charging a premium that corresponds to that level of risk. Credit-based insurance scores have proven to be a very accurate predictor of risk within the
property and casualty insurance industry.

In 2002, NCOIL adopted the Model Act Regarding use of Credit Information in Personal Insurance (Model) in an effort to both recognize the benefits of credit-based insurance scores and to afford consumers protections with respect to the use of their credit information. The Model has been adopted by 30 states and has served to protect consumers while helping to promote competitive insurance marketplaces. The Model can be viewed here.

NCOIL President, IN Rep. Matt Lehman, said, “The issue of credit score discrimination in insurance has been a recurring hot topic for the last 20 years. It is also important to note that states have jurisdiction to regulate the business of insurance pursuant to the McCarran-Ferguson Act of 1945. In this instance, NCOIL opposes federal involvement as an infringement on the states’ well-established authority to oversee the business of insurance and determine what is best for their individual states.”

Considine stated that he was “perhaps as surprised as anyone, and more surprised than most, when the use of credit score proved to be an actuarially sound factor to consider in auto insurance underwriting, but you cannot argue with the conclusions. The statistically supported validity of the numbers is compelling.”

H.R. 5494 would exempt from federal taxation state-based grants that support pre-disaster mitigation for homes against wildfires, windstorms, and earthquakes. NCOIL recognizes the fact that natural disasters are occurring with more frequency, and that steps need to be taken to ensure that people are encouraged to take action with respect to utilizing pre-disaster mitigation programs.

Currently, there is inconsistent tax treatment of state and federal disaster mitigation grants. Congress previously excluded grants provided by FEMA from federal income tax, but state grants are subject to federal income tax. By simply fixing this inconsistency and providing tax parity for certain state-based pre-disaster grant programs, homeowners will be further empowered to protect their homes from natural disasters.

NCOIL CEO Commissioner Tom Considine stated, “We at NCOIL commend Chairman Thompson for introducing H.R. 5494 and taking action to alleviate the harmful impact of future natural disasters. This bipartisan legislation would encourage property owners to utilize federal aid to enhance their safety rather than being penalized for receiving these resources that could protect against disasters. NCOIL supports these vital mitigation efforts and looks forward to other steps to help safeguard Americans from natural disasters.”

The letter on H.R. 1756 can be viewed here.

The letter on H.R. 5494 can be viewed here.

Information and updates on H.R. 1756 can be viewed here.

Information and updates on H.R. 5494 can be viewed here.

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NCOIL is a national legislative organization with the nation’s 50 states as members, represented principally by legislators serving on their states’ insurance and financial institutions committees. NCOIL writes Model Laws in insurance and financial services, works to preserve the State jurisdiction over insurance as established by the McCarran-Ferguson Act seventy-five years ago, and to serve as an educational forum for public policymakers andinterested parties. Founded in 1969, NCOIL works to assert the prerogative of legislators in making State policy when it comes to insurance and educate State legislators on current and longstanding insurance issues.