Sunday, February 5, 2012

IIAV's Fifth Report of the 2012 Session

A Nervous But Successful Week

We are pleased to report to you that this past Thursday, IIAV's proposed legislation on certificates of insurance - HB 867 – passed by unanimous vote in the House Commerce and Labor Committee.  The bill was amended in order to accommodate federal or state certificate requests where the language requested on the certificate was very specific, but the cert must still reflect the underlying policy.  EPA, DOD and DEQ certificates are federal/state departments with specific certificate language.  Our Senate bill has passed the Senate and when it gets to the House it will be amended to mirror HB 867. 

We are not out of the woods yet. While it's unlikely (knock on wood) opposition could still come out of the woodwork and attempt to do harm to our bills but at this point it would be rather difficult. Having said that, both Joe Hudgins and I will be keeping an alert eye on our bills to make sure nothing happens to them. Keep your fingers crossed.

We've had a little bit of "fun" this week. The Governor has supported two bills (HB 523 and SB 369) that would require a notice on homeowner policies that "earthquake coverage may not be included" in the policy. Additional proposed language requires that the notice be "conspicuous" and also include language that states, "that information regarding earthquake insurance is available from the insurer or the insurance agent."

Of course, debate on this notice follows the debate on the Progressive bill where virtually everyone agreed that people don't read their insurance policies. And just how would you make the language "conspicuous" over say, the flood notice?? And finally, we've had a bit of fun on this as our friends at Allstate don't like the "contact the insurer or agent" language because.... Allstate doesn't offer earthquake coverage! Senator Reeves introduced the bill in the Senate on behalf of the Governor and of course he's a State Farm agent.

Does seem odd however to simply have a notice that says something might not be covered and NOT provide the consumer with some recommended recourse.

Last week a House Commerce and Labor subcommittee reviewed all of the legislative proposals on a Virginia State Health Benefit Exchange. The Governor has strongly argued that we don't need legislation on a HBE this year but many business interests have urged the legislature to craft a bill that everyone could agree with and "carry it over" so if the Supreme Court decision affirms the Federal Health Care Bill we would have a bill already agreed to. Our interest in the debate is the ensure that insurance agents can make positive contributions to the HBE Advisory Board or Governing Council, to ensure that agents can sell policies both inside and outside the exchange and to keep legislators out of the contracts between agents and companies. Debate on the issue is contentious. In a surprise move this past week the House C&L subcommittee voted to table all of the HBE bills - thereby setting them aside for the year. The Senate has not taken action yet on the four bills in that side of the Chamber dealing with an HBE but it appears that their fate would be certain if they make it to the House.

During debate on the House bills, a representative from AARP testified that insurance agents and companies have an inherent conflict of interest and should not be represented on an HBE Board or Advisory Council....of course AARP stands ready to be a navigator for the program. GEEE I wonder if the AARP has any interest in health insurance plans.....

It's been a long time since I saw Joe Hudgins turn such a bright shade of red. Let's just say that Joe and the AARP representative had a bit of a discussion that may continue. I believe I see an amendment supported by IIAV that "any non-profit organization with contractual interests in an insurance program cannot be navigators for the HBE."


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 this week. 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 to register for Day on the Hill.

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

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