Wednesday, January 25, 2012

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.

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