Sunday, January 29, 2012

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.

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