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February 21, 2014 BOSE PUBLIC AFFAIRS GROUP INSURANCE BULLETIN XIV, NUMBER 7
In This Issue
General Assembly Overview Unclaimed Life Insurance Benefits IDOI Bill Tax Credits Electronic Delivery of Insurance Documents Motor Vehicle Financial Responsibility Pollution Exclusion Lawsuit Lending Workers Comp Abortion Coverage Mandate Biosimilar Drug Bill Welfare Drug Testing
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the SSAs Death Master File or a database as inclusive to help with the accurate administration of unclaimed death benefits for policies and contracts issues or entered into after June 30, 2015. During committee, the AGs office expressed concern that with the prospective language it would only allow the AG to conduct audits on policies issued after June 30, 2015. The AGs office offered a clarifying amendment, which would give them the power to continue conducting audits on all inforce policies. The amendment was rejected and the bill passed out of committee with the prospective language. However, discussions between the author, AGs office and life industry continue. It appears that the bill may be amended back to its original form, i.e., applies to all in-force policies and contracts.
IDOI BILL
HB 1206, authored by House Insurance Chairman Matt Lehman (R), does the following: (1) removes a requirement for life insurers to submit individual investments to the Department of Insurance; (2) removes a requirement that a foreign or alien insurer submit an application for admission to do business in Indiana in duplicate; (3) changes from March 15 to July 1 of each year the due date for certain insurance holding company filings; (4) adopts ORSA; (5) repeals a provision requiring the Commissioner to examine and publish a foreign or alien insurers annual condensed statement of assets and liabilities; and (6) specifies requirements for service contracts. The bill was heard in Senate Insurance Committee yesterday and was amended in committee to include (1) removal of IC 27-1-1316(c) regarding the requirement to stamp envelope if residential policy if coverage has been reduced, restricted or removed; (2) a $2,500 registration fee for captive insurers doing business in Indiana; (3) clarifying language regarding service contracts. As amended, the bill passed out of committee 8-1.
removed from the bill. The bill is scheduled to be heard again on Monday. As a result of Chairman Browns intention to remove the credit sunsets, Sen. Hershman (Chair of the Senate Tax & Fiscal Committee and author of SB 367), placed all the credit sunsets in HB 1020 with a revised sunset date of 1/1/20. HB 1020 passed out of Senate Tax & Fiscal while the above mentioned Ways and Means was going one. HB 1020 was engrossed on second reading in the Senate yesterday and will be on third reading next week. Were told indiscussions with key leaders that this language is not likely to survive as they understand the substantial negative effect of allowing these credits and offsets to expire but were working closely with legislators to make sure that happens.
POLLUTION EXCLUSION
HB 1241, authored by Rep. Martin Carbaugh (R), is a resurrection of last sessions HB 1269, which clarifies when environmental coverage is excluded from a commercial general liability insurance policy. Amendments were adopted on second reading in the House which include additional consumer notification provisions as well as
language that would apply the bill prospectively. The bill is scheduled for hearing next Thursday (2/27) in the Senate Insurance Committee.
LAWSUIT LENDING
HB 1205, authored by House Chairman Matt Lehman (R), regulates the practice of lawsuit lending subject to the jurisdiction of the Indiana Department of Insurance. It caps the interest rate at 38%. The bill has been removed from the Senate Civil Law Committee schedule and the author may be looking for another home to advance the bill.
WORKERS COMP
SB 294 (an encore to HEA 1320 from last year) contains more restrictive language relative to repackaged drugs, clarification with respect to the definition of a medical service provider, and prohibition of double billing for implants. The bill passed out of the House Employment and Labor committee this week. It was then amended on the House floor by Rep. Lehman to remove language requiring company officers to be covered by workers comp. As amended, the bill was engrossed on second reading.
The bill will be on the House floor for amendment and final vote next week. No changes were made in the House committee so if none are made on the floor the bill will go straight to the governor.