Government Law Newsroom

NAMIC Offers Initial Preview of Its 2005 National State Legislative Agenda

NAMIC has announced its national state legislative agenda for 2005.

Its issue list includes rate reform, underwriting freedom (insurance scoring and Comprehensive Loss Underwriting Experience [CLUE] reports), tort reform, asbestos reform, market conduct reform, standard fire policy exemptions and farm mutual modernization.

“NAMIC state advocacy is based on issues of national scope,” said Roger H. Schmelzer, senior vice president of state and regulatory affairs. “NAMIC’s state affairs managers will execute strategies with NAMIC’s state insurance trade association partners to seek adoption of this priority legislative agenda in targeted states.”

Since the NAMIC Board of Directors approved the agenda in September, the broker compensation issue has surfaced and is likely to become an issue in several states this year. NAMIC staff will monitor this issue closely, especially if it ends up affecting producers, and not just brokers.

The following is an initial preview of the NAMIC agenda as the state legislative season begins. The NAMIC State Affairs staff prepared it. Monthly updates are planned throughout the legislative year.

Tort Reform

Legislative action is expected in Connecticut, Georgia, Indiana, Kentucky, Minnesota, Missouri, New Hampshire, New York, South Carolina and possibly West Virginia this year.

In Connecticut, the Insurance Association of Connecticut plans an aggressive tort reform agenda, including offer of judgment, mitigation of damages for failure to wear a seat belt, jury instructions on economic and non-economic damages, and collateral offset.

In Georgia, Republicans gained control of the House in November for the first time since Reconstruction. This has created some renewed optimism that tort reform is possible. One pre-filed bill proposes a “Texas-style” aggregate cap on non-economic damages of $750,000.

In Indiana, the Insurance Institute of Indiana plans to clarify and limit UM/UIM coverages to personal lines, address two negative workers’ compensation cases, and pursue a more reasonable premises liability standard for not-for-profit entities.

The Insurance Institute of Kentucky plans to introduce legislation to overturn the Lanier v. Wal Mart decision, which makes a merchant prima facie liable for injuries caused when a customer falls in a store.

In Minnesota, local lobbyists plan to pursue statute of limitations language that reduces the state’s standard from six years to something less.

Missouri’s new Republican Gov. Matt Blunt has promised tort reforms this year. For the past two years, lawmakers have approved reforms, only to see them vetoed by outgoing Democratic Gov. Bob Holden.

In South Carolina, Republican Gov. Mark Sanford has proposed tort reforms, including a $300,000 cap on non-economic damages, a sliding cap on punitive damages of three times actual damages; elimination of joint and several liability, limits on venue shopping and allowing evidence of seat belt usage at trial.

West Virginia’s new Governor Joe Manchin has expressed interest in tackling some tough issues in his first year, including comprehensive tort reforms. However, local industry observers believe only modest reforms are likely.