What’s old is new again

After a flurry of activity last Monday, February 4 – the legislature reached cross-over.  This means that the Senate can only hear House bills and the House of Delegates can only year Senate Bills.  Monday was extremely hectic because so many bills of interest were yet to be acted upon by the Senate Commerce and Labor Committee.  But hear them it did for a long afternoon and evening.  Of particular interest to IIAV was our legislation on navigators – SB 1261.  It must be good because some legislators think we went too far and others think we didn’t go far enough.  The bill passed the committee on a 12 – 4 vote and then passed the Senate on effectively a 29-11 vote.

Following the vote however we learned that Attorney General Cuccinelli had communicated with both of our bills sponsors – Senator Puckett and Delegate O’Bannon – that he now opposed our bills and might have his staff speak against the bills following crossover.  Our House bill by the way, HB 2246 passed the House on a 81-19 vote.  We have been trying to meet with the AG’s staff to ascertain why this change of position/interest and the first explanation left us wondering if his office had in fact read our bill.  The IIAV bill does in effect two things – makes navigators subject to Virginia’s applicable fair trade and privacy regulations and subjects them to the regulatory authority of the Bureau of Insurance for violations of those Code sections.  This is virtually no different than the Federal and State GLBA laws.  While our original bill provided substantial regulation over navigators, we backed off this effort given arguments that have not been established on whether or not the Bureau would have the regulatory authority to conduct such authority over navigators.  Thus is the complicated nature of Affordable Care Act and its constantly moving regulations.

As you review the updated – post crossover – legislative table, you’ll see that there’s just not that much left to get worked up about.  You’ll see that a lot of tort reform bills have worked their way through the system and we might even see a strong prohibition on texting and driving bill move through the legislature.  Having said that, you’ll see most of the remaining activity in the legislature on transportation issues and amending the budget.  If we hear more about the AG’s opposition to our navigator bills, we’ll let you know.

Otherwise, if you have any questions, please don’t hesitate to contact me.

Robert N. Bradshaw
IIAV President & CEO
804-929-4134

Legislative ALERT

On the last day of crossover IIAV's legislative proposals on health care navigators has passed both the House and Senate having survived significant opposition.  The Affordable Care Act has created a classification of health care navigators who are supposed to "help facilitate enrollment" in the health care plans in a Federal Exchange.

In short, IIAV's proposals:

·         Protects the Virginia consumer by ensuring that Federally approved navigators do not abuse their functions or improperly use private information;
·         Establishes that navigators are subject to Virginia fair trade practices and privacy regulations;
·         Establishes that navigator functions are limited as set forth by the Affordable Care Act and that they are NOT licensed agents;
·         Gives Virginia consumers an avenue of assistance through the Bureau of Insurance if they have difficulty with navigators; and
·         Requires the Bureau of Insurance to report back to the House/Senate Commerce and Labor Committees in 2014 and 2015 on any issues related to navigators.

Now HB 2246 carried by Delegate O'Bannon must go to the Senate and SB 1261 carried by Senator Puckett will go to the House and if they pass would then go to the Governor for his signature.  The Federal Exchange could be operational in Virginia by January 1, 2014 with navigators activated as early as October this year.

The bills faced significant opposition from legislators who were opposed to anything related to the Federal law despite the consumer protection functions of IIAV's bills.

IIAV worked closely with the Bureau of Insurance, consumer groups and representatives of VAHU and NAIFA-Virginia.  Stay tuned to a possible important announcement on these bills later this week.

The Navigators are coming, the Navigators are coming!

After a long and grueling week with Joe and I visiting all members of the House Commerce and Labor Committee, our navigator bill HB 2246 passed the committee on a 15 to 6 vote.   On the same afternoon our amendment to the "cancel by email" HB 1607 was accepted and approved without fanfare.  Having said that, following the vote on 1607 some legislators had second thoughts on their vote when they could not find that the consumer absolutely has to opt in to dealing with the insurer electronically.  Legislators quickly came to us and we had to show them the opt in reference.  Nothing like rescuing a bill you don't like in the first place. 

As mentioned, the debate on Navigators won the award for most contentious and longest debated of the day. There remains substantial confusion on the Affordable Care Act and several legislators were reluctant to vote for our bill until the Federal Health and Human Services Department (HHS) provides more information and final guidance.  As well they were concerned about acting based on today's deadlines since HHS has not met any deadlines to date asking if we could wait until next year for our legislation.  Some wanted more regulation then we proposed while others felt any vote on our bill was a vote in support of "Obama Care". 

So there are now two areas of concern.  The Navigator bill now goes to the floor of the House where it's sure to receive another debate.  And our companion bill in the Senate – SB 1261 -  comes before the Senate Commerce and Labor Committee on Monday. Another busy day. While Joe and I have met everyone on Senate C&L, we again expect a “spirited” discussion.  And crossover is Wednesday.  In short each house must complete work on bills that generated in their house by the end of the day on Tuesday.  Then the Senate must work on House bills and the House must work on Senate bills. 

Also on Thursday the House Commerce & Labor Committee took off the table the Bureau's bill that prevents felons from owning agencies.  The bill was amended that say that felons could not "own and operate" an agency.  IIAV strongly supported the original language of this bill and certainly supported this watered down version. 

So take a look at the table that accompanies this report and let me know if you have any questions.  We're here at the General Assembly for you until the bitter end - February 23. 

By the way, thanks to everyone who attended the Insurance Day on the Hill.  We had a great program and even heard news in progress with the report by Lt. Governor Bill Bolling. 

Call me if you have any questions! 

Robert N. Bradshaw
IIAV President & CEO
804-929-4134

How Many Miles in a Day Does a Lobbyist Travel?

This has been a very busy week for Joe and I.  Primarily we’ve been working on HB 1607 where USAA wants to be able to cancel insurance policies electronically.  We have recommended an amendment that would essentially protect insurance agents from customers who  inadvertently send “new” addresses to the agent….but not the company.  There’s an interesting – if not unexpected – split among the committee from those who don’t believe that electronic delivery should be treated any differently  then mail and those who don’t believe cancellation notices should be allowed at all by e-mail.  Having said that we have worked out an arrangement with the bill’s sponsor – Tim Hugo – that he would accept our amendment but would place a sunset clause it.  So in three years we’ll have to prove our case again. 

All told this has again taught Joe and I that there are those who frankly are willing to stretch the truth significantly in order to get their positions accepted by legislators.  I would especially like to thank those of you who contacted your delegates on this issue.  It was obvious that our messages had been heard and actually opened some doors that previously had been closed to us.  Again, your contacts were essential.

Otherwise we have been working on getting a wide range of groups on board with our health care bill regulating navigators.  Working with Bill Gray – lobbyist for the Health Underwriters – it looks like we have agreement among many groups and at least not vehement opposition from the Bureau of Insurance which it was clear that we had with our original bill.

In this week’s Legislative Table I draw your attention to the tort reform measures that passed the House  Courts Committee this week after a full court press by business group coalition – of which IIAV is a member.  Several of these bills have been attempted for many years without success and could stand to further improve the business climate in Virginia.  The trial lawyers got the bills amended somewhat but there was a true business industry success in these efforts. 

Course these bills need to get through the Senate and after recent events there doesn’t seem to be a lot of interest in cooperation among the parties this year.  

So we’re ready for another interesting week dealing with condo master policies, health care navigators, electronic notification, and numerous remaining bills related to workers compensation.

If you have any questions, please don’t hesitate to contact us.

Robert Bradshaw – Rbradshaw@iiav.com – 804-929-4134

Joe Hudgins – 804-929-4138

By the way – it’s not too late to register for the Insurance Day on the Hill this week.  Register Now!

A long strange week – plus a “shout out” to Ben Winters!

Joe Hudgins and I have been working most on HB 1607 where USAA wants to be able to cancel policies by e-mail (or “electronic means”… you say tomato….).  The bill was placed on the House Commerce and Labor Committee agenda three times and passed by for the day twice this week.  I want to thank our members who have contacted their legislators who sit on the House Commerce and Labor Committee.  Our sense is that we have made our point and legislators will accept our amendment where agents will not have to review each and every e-mail received to see if it’s a new e-mail address for the customer.  In fact, I sense that some legislators are not excited about the cancellation of insurance through e-mail is a good idea in the first place.

I suspect that HB 1607 will again be on the committee agenda for this coming Tuesday afternoon.  If you can re-contact your legislators if they are on the Commerce and Labor Committee, it probably would not be a bad idea.  Again, ask them to support the “Big I” amendment to HB 1607.

PIA objected to a Bureau bill that would prohibit felons from having ownership interest in insurance agencies – HB 1838.  They felt that the bill would have unintended consequences and their argument prevailed over the Bureau’s objections and the bill was tabled.  We hope to work with the Bureau on replacement language that would pass committee objections.

Also on the agenda this coming week are hearings on IIAV and VAHU’s legislation related to regulation of navigators.  Whether we have a state or federal health care exchange, the Affordable Care Act calls for “navigators” who will help facilitate enrollment in the exchange.  The Bureau doesn’t believe that they could meet the deadlines required by our legislation by October 2013.  We’ll be working with VAHU, some consumer groups and the Bureau on this legislation that is on the Senate Commerce and Labor Committee agenda for Monday.  I think we’ll need this bill to go by for the week.

Finally, young agent Ben Winters with Winters Oliver Agency in Mechanicsville, Virginia joined us last Thursday to testify on three bills.  Two related to nursing homes and the third related Home Care Organizations – HB 1445 – which clarifies liability insurance coverage for home care organizations.  After waiting for over an hour the committee “passed by for the day” the two bills related to nursing homes. Then it was a wait until 5:00 (with the threat of snow in the air) for the health subcommittee to take up HB 1445.  An earlier visit by Joe Hudgins and Ben with the bill’s sponsor Delegate Chris Head proved to be productive when the proposed language was shown to be technically flawed. 

Our thanks to Ben for helping the legislature actually redraft legislation so our industry can respond to Code requirements.  We will of course follow up with the regulators following the session to help clarify the resultant regulations.

Accompanying this report is our updated legislative table.  If you have any questions, don’t hesitate to contact us.  AND – don’t forget to sign up for the Insurance Day on the Hill.  We need YOU to come visit with your legislators.

Until next week:

Robert N. Bradshaw
IIAV President & CEO
804-929-4134

First Legislative Report is an ALERT! How’s that for a start???

The 2013 legislative session starts with numerous Work Comp bills but first…

 

RICHMOND -  Delegate Tim Hugo has introduced HB 1607 on behalf of USAA and we knew that one day this would be coming.  In short, the bill would allow for companies to cancel or non-renew policies by electronic means IF the customer has agreed to communicate and do business electronically in the first place.  While we don’t want to tell USAA that they can’t conduct business by their electronic business model, an unintended E&O consequence of this legislation would require independent agents to potentially check each and every e-mail received and ensure that it is the “electronic address of record” submitted to the insurance company.

 

We have TRIED to work with our company lobbyist friends (PCI, AIA, State Farm and others) and at this point have submitted FOUR friendly amendments designed to protect agents.  Presently our amendment is as follows:

 

Line 223 of HB 1607

38.2-325

E.  The notification to the insurance company of any change of electronic address for the named insured shall be the sole responsibility of the named insured.  Notice of such change of the insured’s electronic address given to the agent of record by any person shall not be deemed as notice to the insurance company unless it is specifically identified as a change and receipt has been accepted.

 

This amendment:

 
1.  Does not impact how USAA does business – they don’t have agents.  This ONLY applies if there is an “agent of record” associated with the client.
2. This would protect the agent who receives hundreds of e-mails each day from having to check if any are “new” addresses.
3. The insurance company lobbyists are saying the agent solution to the E&O land mine is to agree to completely take ourselves out of the electronic loop.  Then this legislates the agent out of business and takes them out of the electronic customer service business.  We are NOT going to be dinosaurs!

This bill was carried over by the Commerce and Labor Committee and is presently scheduled for Tuesday afternoon.  IF YOUR LEGISLATOR IS ON THE HOUSE COMMERCE AND LABOR COMMITTEE – PLEASE CONTACT THEM IMMEDIATELY!  Ask them to support and endorse the Big I amendment to HB 1607!  Here are the members of the committee and their contact information:

 

Terry Kilgore, Chairman    804-698-1001  Deltkilgore@house.virginia.gov

Lee Ware, Vice Chairman   804-698-1065  DelLWare@house.virginia.gov

Bob Purkey   804-698-1082  DelBPurkey@house.virginia.gov

Kathy Byron  804-698-1022  DelKByron@house.virginia.gov

Tim Hugo      804-698-1040  DelTHugo@house.virginia.gov

Tom Rust       804-698-1086  DelTRust@house.virginia.gov

Danny Marshall        804-698-1014  DelDMarshall@house.virginia.gov

Ben Cline       804-698-1024  DelBCline@house.virginia.gov

Jackson Miller           804-698-1050  DelJMiller@house.virginia.gov

Don Merricks            804-698-1016  DelDMerricks@house.virginia.gov

Manoli Loupassi      804-698-1068  DelMLoupassi@house.virginia.gov

John Cosgrove          804-698-1078  DelJCosgrove@house.virginia.gov

Rob Bell         804-698-1058  DelRBell@house.virginia.gov

Barbara Comstock    804-698-1034  DelBComstock@house.virginia.gov

Greg Habeeb             804-698-1008  DelGHabeeb@house.virginia.gov

Joe Johnson   804-698-1004 DelJJohnson@house.virginia.gov

Johnny Joannou        804-698-1079  No e-mail

Jennifer McClellan   804-698-1071  DelJMcClellan@house.virginia.gov

Jeion Ward    804-698-1092  DelJWard@house.virginia.gov

Lynwood Lewis       804-698-1000  DelLLewis@house.virginia.gov

Roslyn Tyler 804-698-1075  DelRTyler@house.virginia.gov

Lionell Spruill          804-698-1077  DelLSpruill@house.virginia.gov

 

If you do not know who your legislator is, check here.

 

Again, please contact your legislator TODAY and before 11:00 am on Tuesday, January 15!

 

The first legislative table accompanies this report.  This appears to be the year of the Work Comp bill.  I’ve never seen so many introduced in one year. Many bills are yet to come.  In fact, IIAV’s bill that defines health care navigators has not dropped yet but we expect them to drop both in the House and Senate by early next week.

 

So….more to come.  If you have any questions or concerns, please feel free to contact us:

 

Bob Bradshaw – Rbradshaw@iiav.com – 804-929-4134

Joe Hudgins – Jhudgins@iiav.com – 804-929-4138

 

After speaking with your delegate about HB 1607, if you could let us know about your conversation, it would be greatly appreciated.

 

Until next week…..we’re working as hard as we can on your behalf.

Prepared for a fight…but the other side doesn’t show

I’m not particularly sure why, but when we showed up to support the Volunteer Fire Fighter legislation before the Senate Commerce and Labor Committee – HB1202 -  it became apparent that the company lobbyists were not going to oppose the bill after their strong opposition the previous week.  Their position was clearly tempered by their 16 to 4 loss in the House C&L Committee and then 97 to 1 loss when the bill came before the full House.  An argument could even have been made at the time to abandon the bill coming before the Senate committee, as the Senate bill was heading toward the Governor’s office even if the Senate took no action on the House companion bill. [Now are you confused??]  In short, we were prepared for battle and thankfully it didn’t have to come to that.  I felt somewhat sorry for Joe Hudgins as he spent a good part of his weekend working on talking points for Senator Puckett. 

Joe and I then proceeded to sit in the Senate gallery and watch the debate on HB153 – Workers’ compensation: exclusion of certain employees.  Introduced by our friend Delegate Lee Ware, the legislation would end the practice of companies having to participate in BOTH the Virginia Workers Compensation program AND the Longshore and Harbor Workers Compensation Act.  Essentially, businesses will be able to pick one or the other to support their employees instead of having to purchase redundant coverage.  As you can imagine, union interests supported participation in both programs and businesses were pleading for relief.  Discussion on the floor of the Senate became quite heated (although this bill was just the tip of the iceberg creating tension among legislators) and legislators started ascribing issues that had nothing to do with reality.  HB 153 became a political discussion instead of a debate on issues.  As a result, the bill ultimately passed on a 20 to 19 vote. 

For the most part, nothing moving toward the Governor’s office for signature should give us heartburn.  Particularly since our legislation on certificates of insurance is heading in that direction.

Clearly some “brochure” bills are heading to the Governor’s office – a couple of which he asked for, such as the notices regarding earthquake coverage, or the lack thereof. 

Accompanying this report is our Legislative Table which provides an update on all of our interested bills as of today.  As always, if you have any questions, please don’t hesitate to give me a call at 804-929-4134 or e-mail me at rbradshaw@iiav.com.   

And don’t worry – citizens are “safe” to text and drive until next year.  SB219 – the last of the text messaging bills – was tabled by Senator Barker when one of the Delegates promised to work with him on a stronger bill for 2013.  We’ve heard that story before.  In short, reckless driving is reckless driving with significant penalties attached to it, and you can NOW be stopped while driving for texting, reading e-mails, shaving, eating, brushing your teeth, putting on make-up… 

This will be our final report for the 2012 legislative session.  If something comes up of an urgent nature we will certainly alert you to this ASAP.  The last day of the session – Sine Die – is scheduled for March 10 but that’s predicated on the legislators passing a budget.  If you remember a couple of years ago, they didn’t pass a budget until early June!   

For in-depth details on the new legislation, sign up for one of IIAV’s Laws and Regulations classes.  We have a great video for you, too.  Maybe even your choice of videos. 

Finally, let me thank Joe Hudgins – IIAV’s Vice President of Education and Technical Affairs and long term-friend - for his help during this session of the General Assembly.  While I might have a good handle on the politics, Joe is just unsurpassed in his technical knowledge on insurance issues.  His ability also to explain a complicated insurance situation to legislators has been invaluable and his help on the certificate issue has been critical.  IIAV members should be proud to have Joe working for you this session. 

Until next legislative session….I hope to see you at an IIAV Laws & Regs class…or at our convention….or at your office or ours!