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.