Fourth Report of the 2012 Session

Continuing to learn important lessons!

First, let me thank everyone who has contacted their delegate in support of HB 867 - IIAV's legislative proposal on certificates of insurance. And let me encourage those who have not contacted their delegate to do so in support of HB 867. Yes we were contacted by a minor little company - AIG - who wanted to be exempt from our legislation and who also presented us with an amendment that would likely have brought the huge coalition down on our bill. But when we actually listened to what they were not saying, we understood that indeed our legislation needed an important amendment that would actually enhance the integrity of the bill. Having said that, Joe Hudgins and I met with the Bureau of Insurance and we drafted acceptable language to us, the Bureau, AIG and would not affect the wide range of businesses and industries who have agreed to either support - or not oppose - HB 867.

While there's a long story in relation to this event - which I'm sure will be part of our 2012 Laws and Regulations Class - the important lesson is to stop, listen and find out the specific objection to something before you say "no" to something. AIG or similar companies will not be exempt to HB 867, but their ability to conduct business in unusual circumstances is protected.

HB 867 will now likely be heard before the House Commerce and Labor Committee on Thursday, February 2nd.

The Senate Commerce and Labor Committee on Monday, January 30th, and the House Commerce and Labor Committee on Tuesday, January 31st will begin hearings on all of the varied bills establishing a Virginia Health Care Exchange. The McDonnell administration has adamantly stressed that legislation is NOT needed this year and that in fact, they have the legislative authority to create the exchange without further legislation if it becomes necessary - given a Supreme Court ruling in the middle of this year. Many legislators look at anything related to the exchange as a political hot potato. We're working with the Virginia Health Underwriters to ensure that legislators know that insurance agents are part of the solution to the discussion on health care reform and that we're not part of the problem. And indeed there are a number of favorable initiatives presented in the proposed bills. The problem is however like when you tell you spouse that you hit all the numbers for the lottery but it took five different tickets to get all the numbers. Even Senator McEachin's bill had something we liked - he was the only one who put a health insurance agent on the exchange's advisory board - although Senator Watkin's bill said that the Exchange's Director must listen to a wide constituency group...including health insurance agents. No before you get excited about supporting Senator McEachin's bill recognize that his bill also had the state or the exchange involved in establishing commission agreements for agents and companies. If there's one thing we absolutely DON'T want is government intrusion in agent commissions.

Once again, take a look at the Legislative Table and if you have any questions or concerns about any of the proposals listed, please don't hesitate to let me know. Also - PLEASE plan on attending IIAV's Insurance Day on the Hill - co-hosted with the National Association of Insurance and Financial Advisors - Virginia Chapter and the Virginia Association of Health Underwriters. It's critically important this year that insurance agents show their presence both from property/casualty industry but also the health insurance industry. Click here for a Day on the Hill registration form.

As always, if you have any questions, please don't hesitate to contact me by e-mail at Rbradshaw@iiav.com or through my cell phone at 804-929-4134.

URGENT: Legis Alert - Certificates

Yesterday morning (1/24) we learned that a company was prepared to present an amendment to IIAV's proposal on certificates - HB 867- that would have exempted them from the act. The amendment clearly would have a) abrogated the intent of the bill, and b) started a "Christmas Tree" where industry after industry seeks to exempt themselves from the legislation. Clearly this was not acceptable.

At first we were taken aback at the brazen attempt to exclude themselves from the legislation. However following their conversation with the Bureau of Insurance and us it was apparent that there was indeed an unintended consequence to a strict interpretation of our legislative proposal that would have made it difficult for agencies doing work with the federal or state government where specific certificate language was requested. With the Bureau of Insurance's assistance we have crafted an amendment to HB 867 that should satisfy the complaining company. Specifically our amendment notes that as long as a certificate "accurately reflects the terms and conditions of the underlying policy", it can take any number of different formats through Acord forms or otherwise.

IIAV has worked with a wide range of interested organizations that either support our bill or have agreed not to oppose the bill. We have revisited with many of these groups to assure them that our amendment in no way changes the underlying principal of our legislative proposal. Moreover, we have assured them that we are not interested in carving out an exception for any group or industry to the legislation - simply put; it must have a uniform application.

We have presented the amendment we drafted with the assistance of the Bureau to the complaining company. We are absolutely confident that our amendment addresses their concern.

HB 867 is now scheduled to come before the House Commerce and Labor Committee next Tuesday, January 31st. While we wouldn't normally do this, we need the IIAV membership to flex their muscle and let the legislature know that HB 867 must pass as long as it has the approval of the Bureau of Insurance and IIAV. It should pass without outside amendments that do not have the approval of the Bureau or IIAV!


If your Delegate serves on the Commerce and Labor Committee it is especially critical that these legislators be contacted by you. They are listed here with links to their contact information:

Kilgore (Chairman), Purkey, Byron, Ware, R.L., Hugo, Rust, Marshall, D.W., Cline, Miller, Merricks, Loupassi, Cosgrove, Bell, Robert B., Comstock, Habeeb, Johnson, Joannou, Alexander, McClellan, Ward, Lewis, Tyler

Again, please ask your Delegate to approve HB 867 SOLEY with IIAV or Bureau supported amendments! We know of no other opposition to HB 867 except for this one company - although it's entirely possible that some company may come out of the woodwork in opposition. We are prepared and with your help we can overcome any opposition to this legislation. WE MUST STOP THIRD PARTY DEMANDS TO FALSIFY CERTIFICATES OF INSURANCE!

Thank you for your assistance and if you have any comments, questions or concerns, please feel free to contact either Joe Hudgins - jhudgins@iiav.com - or me at rbradshaw@iiav.com. Your voice can make a difference. Please contact your Delegate As Soon As Possible.

Thank you for your assistance.

Third Report of the 2012 Session

"You might want to sit down Mr. Bradshaw"

Richmond - Last week our first opportunity to present our bill on certificates came before the Senate Commerce and Labor Committee. Previously we had met with all Senators and still had not heard of any opposition to SB47. Having said that, Joe Hudgins and I were certain that someone or some company would come out of the woodwork and oppose our bill.

So, we were prepared for our committee hearing and I had worked extensively on my committee presentation. And Joe was prepared for the questions that were sure to come our way. So our bill was called and Senator Watkins presented the bill using our talking points. Then it was our turn. This is it! This is our time! I started making my comments whereupon Senator Norment stopped me in mid-sentence and asked "Mr. Bradshaw (he's very formal in committee), are you aware of any opposition to your bill?" To which I replied "no", and he responded "then you might want to sit down Mr. Bradshaw." And as a good salesman when the sale is made....you just sit down and our bill passed with unanimous support. Yesterday if passed the final vote in the full Senate. So...HB 47 goes to the House of Delegates.

Next Tuesday afternoon our House companion bill - HB 867 - will be heard in the House Commerce and Labor Committee. Delegate Rob Bell has also introduced a certificate bill - which did not provide for the Bureau of Insurance's regulatory authority - and it will be rolled into HB 867. Again, I don't mean to sound like a worry wart, but we're ready for opposition but just are not aware of any just as yet.

Yesterday the IIAV Legislative Committee decided to support HB 523 and the companion SB 369 which would require notices on insurance policies that earthquake insurance is excluded. This would be similar to the notices indicating that flood coverage is excluded. The legislation would require that the notice suggest that the consumer discuss earthquake coverage with their insurer or agent. It certainly couldn't hurt to get the dialog started and is a reminder following the sale of the policy.

January 31st had been set aside for a subcommittee of the House Commerce and Labor Committee to review and hear all of the insurance exchange bills - of which there are several introduced by both parties. The McDonnell administration has actively presented to legislators that no legislation is needed during this session on a Virginia exchange and that we can wait to receive the results of the Supreme Court hearing in March - with their expected ruling in July. Should be an interesting discussion and members of IIAV's Health Task Force will be in attendance.

Once again, take a look at the Legislative Table and if you have any questions or concerns about any of the proposals listed, please don't hesitate to let me know. Also - PLEASE plan on attending IIAV's Insurance Day on the Hill - co-hosted with the National Association of Insurance and Financial Advisors - Virginia Chapter and the Virginia Association of Health Underwriters. It's critically important this year that insurance agents show their presence both from property/casualty industry but also the health insurance industry. Click here for a Day on the Hill registration form.

As always, if you have any questions, please don't hesitate to contact me by e-mail at Rbradshaw@iiav.com or through my cell phone at 804-929-4134

Second Report of the 2012 Session

A Quick Start - Might want want to contact your Senator

RICHMOND – On Monday afternoon, January 16 the Senate Commerce and Labor Committee will take up IIAV’s proposal on certificates of Insurance – SB 47 sponsored by Senator John Watkins. If your Senator is on the Commerce and Labor Committee – we would encourage you to contact them and ask that they support SB 47. Here’s a listing of the Senators on C&L:

2012 SESSION

Senate Commerce and Labor

MEMBERSHIP

Watkins (Chairman), Colgan, Saslaw, Miller, Y.B., Norment, Stosch, Edwards, Wagner, Newman, Puckett, Herring, Martin, Obenshain, Stuart, McWaters, Stanley

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We weren’t expecting SB 47 to come up so quickly but better now then never. Our bill has also been introduced in the House HB 867 by Senator Tom Rust but this bill is not on the committee docket as of yet. We continue to meet with legislators and industry representatives and have yet to find anyone who’s opposed to our certificate proposals….but we’ll soon see who shows up.

While we don’t normally ask that you call your legislator unless it’s necessary – call me a little paranoid on this one. We’ll report back to you following the Senate action and let you know what happened.

Looking at the rest of the proposals, there are certainly some interesting ones out there. We were certain that some legislation would be introduced related to earthquakes and sure enough there is/are. The ADMINISTRATION has asked for both HB 523 and SB 369 to be introduced which would require insurance companies to post a notice on policies that exclude coverage that earthquake coverage is excluded and that it may be available for an additional cost. A similar notice to that for flood polices. That will sure take care of the problem….right? I guess following an earthquake you would be able to use the affirmative defense against a claim saying that the General Assembly didn’t require discussion pre-purchase and the client simply didn’t read their policy.

This year you can certainly tell the “brochure bills” by the number of bills that would prohibit texting while driving. They’re too numerous to count. I once heard a policeman ask – for primary offense laws, “now how am I to know if someone is texting while driving?” If they’re driving erratically they can be stopped for that and cited for reckless driving. I don’t mean to diminish the concern for this important safety issue but isn’t reckless driving already illegal?

Take a look at the Legislative Table and if you have any questions or concerns about any of the proposals listed, please don’t hesitate to let me know. Also – PLEASE plan on attending IIAV’s Insurance Day on the Hill – co-hosted with the National Association of Insurance and Financial Advisors – Virginia Chapter and the Virginia Association of Health Underwriters. It’s critically important this year that insurance agents show their presence both from property/casualty industry but also the health insurance industry. Click here for a Day on the Hill registration form.

As always, if you have any questions, please don't hesitate to contact me by e-mail at Rbradshaw@iiav.com or through my cell phone at 804-929-4134.

First Legislative Report for 2012

Let the people’s business begin!

We’ve got a slow beginning to this year’s legislative session.  Usually by this time – only one day out – we’re reviewing thousands of proposals to see if they impact our members and/or industry.  At this point only a couple hundred bills in total have been made public and for a long session, we know that this simply is too good to be true.  It’s possible but not probable that a long session will NOT generate a lot of proposals.

Having said that I’ve attached our legislative table with a couple of pieces of legislation that we’re tracking at the moment.  We’ve noted a couple of company sponsored bills and one from the Bureau of Insurance although we’re aware of much more to come.  We’ve noted a drafting error on IIAV’s Bill – SB 47 – Certificates of Insurance that needs to be corrected.  Once the session starts we can get this cleared up in the nature of a substitute.  We STILL don’t have a bill number for our certificate legislation in the House which will be introduced by Delegate Tom Rust.

Of course, what good would a legislative session be without some odd strange bills – that clearly reflect the urgent needs of today.  So far my nomination is bi-partisan – one from a Republican and another from a Democrat.

HB19 – Introduced by Delegate Terry Kilgore provides for an income tax deduction that shall not exceed $8,000 if you contract to have your cremated remains sent into space on a commercial space flight.  The bill is effective for taxable years beginning January 1, 2013 but before January 1. 2021. – This leave so very many questions……

Then there’s

HB124 – Introduced by Delegate Joe Morrissey which imposes a tax of 20 cents on plastic bags used in stores.  There are exemptions in the bill for bags used for ice cream, meat, fish, poultry, leftover restaurant food….and retailers are allowed to retain some of these fees if they have a “customer bag credit program.”  Oh yes, there are fines for retailers who fail to collect and remit the tax.  I’m just wondering what I’m going to use for my dog walks if this passes.

So we’ll follow up with future reports to keep you informed and this is our first ever legislative “blog” which will allow you to comment on some of the information we report.  We hope you like this blog effort.

Finally….don’t forget to register for the Insurance Day on the Hill.  We very much need your attendance and support this year both on the health side and the property casualty side.  I look forward to seeing you in Richmond…..

With that said…Let the “games” begin.  The 2012 Legislative Session begins on Wednesday, January 11.

Robert N. Bradshaw
IIAV President & CEO
Rbradshaw@iiav.com