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PIA to Attend Meetings with State Legislators Nov. 21-24

The National Conference of Insurance Legislators will meet in Nashville, TN November 21 – 24 to discuss several key issues facing the insurance industry...
November 20, 2013

The National Conference of Insurance Legislators (NCOIL) will meet in Nashville, TN November 21 – 24 to discuss several key issues facing the insurance industry. PIA National Assistant Vice President for Regulatory Affairs David Eppstein will represent PIA National at the meetings. Congressman Jim Cooper (TN-05) will offer the keynote address and provide an update on developments.

NCOIL President Charles Curtiss (TN) has focused much of the organization’s attention on healthcare during his term and it is expected that President-elect Greg Wren (AL), who will assume the role as president during this meeting, will continue the focus on issues surrounding implementation of the Affordable Care Act (ACA).

In addition to healthcare, the legislators will be asserting themselves more in international insurance discussions. PIA sees this as a positive development because international standards are increasingly influencing domestic regulation. As the primary authority over insurance public policy decisions, we believe our state legislators should have an active role in these discussions.

The NCOIL International Insurance Issues Committee, chaired by NCOIL Past President Senator Carroll Leavell (NM), will consider a resolution reaffirming support for the U.S. state-based system in international insurance regulatory discussions. The resolution is in response to a recent Financial Stability Board (FSB) report that suggests the U.S. consider a more federalized regulatory approach. The resolution requests that all representatives of the U.S. in international insurance regulatory discussions advocate positions that are consistent with U.S. state-based oversight. PIA National strongly supports this resolution and we appreciate the attention our state legislators are giving to these important international issues.

The NCOIL Property-Casualty Committee, chaired by Representative Matt Lehman (IN), will continue its discussion regarding proof of coverage for use in large commercial property transactions. NCOIL passed a model law addressing certificates of insurance with substantial support from PIA. The legislators also crafted a binder model to try to alleviate concerns brought forth by some in the lending community that binders offer inadequate proof of coverage because they lack basic coverage details and expire in some jurisdictions.

Having passed these two models to clarify the use of certificates and binders, the legislators asked the industry to try to alleviate any further concerns through the Association for Cooperative Operations Research and Development (ACORD). PIA supports the ACORD process for creating and/or amending insurance forms and we look forward to working with our industry partners to make sure lenders have access to adequate proof of insurance coverage. Representatives from ACORD will update the legislators on the latest developments during this meeting.

Committee members will also discuss their Post-Assessment Property and Liability Insurance Guaranty Association Model Act which establishes a comprehensive framework for the protection of claimants when a P/C insurer becomes insolvent.

The Workers’ Compensation Committee will consider a proposed model act on workers’ compensation coverage for volunteer firefighters, sponsored for discussion by Committee Chair Rep. Bill Botzow (VT).