CONN. REAPPOINTS COGSWELL:
Conn. Governor Jodi Rell has asked Susan Cogswell, current insurance commissioner, to remain in the post, and Cogswell has accepted the reappointment. Rell had directed that the state's 60 commissioners submit letters of resignation when she was sworn into office last month to succeed John Rowland, who resigned under an ethics cloud. Rell sought to review all gubernatorial appointments so she could put her own stamp on state government. Her status having been clarified, Cogswell says she's pleased to serve. "I am honored and pleased to be chosen by Governor Rell to remain as the head of the Connecticut Insurance Department. I look forward to continuing productive relationships with the insurance industry here in the state as we work on regulatory issues that will help to grow insurance businesses, as well as provide consumers with the protections they deserve," Cogswell commented in a statement. Cogswell, a Torrington resident, was appointed by Rowland in June 2000. She is the state's first female commissioner.
CONN. ADOPTS TERROR EXEMPTION:
The Connecticut Department of Insurance has implemented a limited commercial lines exemption from terrorism liability under the state's standard fire insurance policy. Public Act 04-140's limited exclusion applies only when a commercial policyholder has rejected federal Terrorism Risk Insurance Act (TRIA) coverage and will end when TRIA expires on Dec. 31, 2005. If the federal TRIA is not reauthorized or extended, the exclusion will not apply for any subsequent events and revised filings will be required. Commercial lines insurers using the limited exclusion must also provide a credit or premium reduction to reflect any savings projected from the exclusion. Additionally, insurers must provide the policyholder either with a notice of non-renewal or a conditional renewal notice with a prominent disclosure of the new exclusion. This notice must comply with the same 60-day advance notice requirements of any policy non-renewal notification, according to the rules announced by Commissioner Susan Cogswell. Of the 28 states with standard fire policies, eight including Connecticut have adopted commercial lines exclusion for terrorism risks.
VERMONT WINDSHIELDS FIXED:
A new pilot project will give up to $250 to help cover the cost of a smashed car window as long as the smashing took place in Burlington, Vt. The victim, who needn't live in Burlington, must have a household income of less than $45,000 and car insurance that has a deductible of more than $250 or isn't comprehensive. The project is funded to the tune of $10,000 by the Vermont Center for Crime Victim Services in Waterbury and has helped 19 victims. It's administered by the Community Justice Center in partnership with the Burlington Police Department and the Waterbury agency. The project was the brainchild of Sharon Davis, a special projects coordinator for the victim service center and a former staff member of the First Response Team, a group of volunteers who help people affected by property crimes. Davis said the windshield program is funded from the victims agency's "special funds," which come from court fees.
MASS. MOVES AUTO DATE:
Massachusetts Gov. Mitt Romney has signed into law a bill changing from January 1 to April 1 the date that annual private passenger auto insurance rates take effect. The measure had been backed by the Massachusetts Association of Insurance Agents (MAIA) to reduce costs and confusion surrounding the annual change in rates. The insurance commissioner typically does not announce rates until the December 15 deadline. This law change gives insurance companies and consumers a longer period of time between approval of the rates and their effective date. In other action, lawmakers approved HB 4485, a bill that irequires insurers to check with the Department of Revenue to see if a claimant owes past-due taxes prior to making any nonrecurring payment in excess of $500. This bill is similar to an existing law requiring insurers to check for past due child support before claims are paid. Insurers opposed the measure due to the additional administrative burden.
MAINE STRESSES COMP EVIDENCE:
The Maine Workers Compensation Board is not subject to the more strict rules of evidence governing other courts and should be open to evidence from a variety of sources so long as it is sufficiently reliable, the state Supreme Court reminded in a recent ruling involving a Scarborough police officer who sued over wrongful termination. In Michael Maietta v. Town of Scarborough the high court said a state workers' compensation hearing officer erred when he excluded evidence from arbitrated proceedings under the police department's collective bargaining agreement that found Maietta had not been wrongfully dismissed. The court vacated and remanded the case for a new hearing. Addressing the discipline of police officer Maietta for excessive absenteeism, a hearing officer found that "by and large the discipline was taken in good faith by the employer." But the high court maintained that the decision of the labor arbitration panel, after a fully litigated arbitration proceeding, was obviously relevant to the question of the motivation for the discipline of Maietta. While it would decide whether the labor arbitration decision should control the workers' compensation hearing officer's decision, "it is certainly relevant to inform the critical decision that the hearing officer had to make regarding the motivation for the termination decision," the court wrote.
N.Y. GETS CREDIT SCORING LAW:
New York Gov. George Pataki has allowed a bill governing insurers' use of credit scoring to become law without his signature. The bill is based on the industry-supported model developed by the National Conference of Insurance Legislators (NCOIL). Under the new law, insurers may continue to use credit-based insurance scores as a factor in underwriting and rating homeowners and auto insurance. But the new law prohibits the use of certain factors like income, address, zip code, race, religion, color, sex, disability, national origin, ancestry, or marital status. It also requires insurers to disclose the use of insurance scores, and to provide written notification if credit use results in a negative action. Insurers must also file their scoring models with the department. Nineteen other states have adopted the NCOIL model. "This bill was by far preferable over other legislation which would have established an outright ban on credit use, " commented Donald Cleasby, assistant vice president for the Property Casualty Insurers Association of America. Agents also praised the new law. "This bill will enact significant consumer protections to ensure that insurance companies use credit information accurately and fairly for New Yorkers who buy homeowners, rental and auto insurance," said T.J. Derella, president of the Professional Insurance Agents of New York. Derella also urged lawmakers to extend the protections to commercial lines. This suggestion has yet to be addressed in Albany.
N.J. OFFERS 150 LANGUAGES:
The New Jersey Department of Banking and Insurance has new program designed to tear down language barriers and make it possible for consumers to be heard in more than 150 languages. The department has contracted with Language Line Services, a provider of over-the-phone interpretation from English into the caller's native language. The service is available through the department's consumer line (1-800-446-SHOP) and its Camden and Newark offices. "This new service enhances our ability to help consumers, regardless of their ethnic background or their ability to communicate effectively in English," Commissioner Holly C. Bakke said. When calling, consumers who speak languages other than English are prompted to identify the language they are most comfortable using, and a time that is most convenient for them to speak with an interpreter and a department staff member. The staff member will then contact Language Line Services and a three-way conversation will ensue.
DELAWARE SESSION DISAPPOINTS:
Delaware Gov. Ruth Ann Minner has signed a number of bills of interest to the property/casualty industry since the 2003-2004 legislative session ended July 1, most recently a personal injury protection measure and a workers' compensation subclassification bill. "Many bills of interest to the business community were passed during the legislative session and signed into law, but we were disconcerted that a full discussion on reigning in workers' compensation costs did not take place," said Richard Stokes, regional manager and counsel for the Property Casualty Insurers Association of America (PCI). PCI was also disappointed that lawmakers increased the fee for national driving records from $4 to $15 and increased from $8 to $20 the cost of handling special requests to certify records or notarize affidavits. Gov. Minner signed several other bills: SB 166, which spells out all deductible options available and ensures the policyholder acknowledges the cover and costs associated with the policy he or she selects, takes effect Oct. 1; HB 430 permits employers to develop subclassifications within the uniform classification system that better recognize their particular risk; HB 43 makes a failure to wear a seat belt a primary traffic violation; HB 280 creates professional public adjuster licenses, and HCR 40 urges all insurers to review driver education curriculum to potentially offer a premium reduction.
MARYLAND UPHOLDS PIP WAIVER:
A Maryland appeals court has upheld a 2003 circuit court decision by maintaining that personal injury protection (PIP) waivers remain effective until withdrawn in writing. The Property Casualty Insurers Association of America (PCI) filed an amicus brief on behalf of the insurer defendant. "In its July 23 ruling, the appeals court clearly supports a signed PIP waiver over the assertion of the plaintiff," Robert Hurns, counsel for PCI, said. "It's another victory for the validity of insurance contracts." In the original case, a GEICO policyholder injured in a 2003 auto accident attempted to recover PIP benefits. GEICO rejected the claim because the plaintiff had reportedly signed a PIP waiver in 1998. The plaintiff claimed the waiver was invalid because he had since signed a policy with new terms and conditions. However, at the circuit court trial, which the plaintiff did not attend, the GEICO underwriting manager testified the updated policy included two pages of information about PIP coverage and that the plaintiff had signed off on the policy. The circuit court entered judgment in favor of GEICO and the plaintiff appealed. In its written opinion, the appeals court cited case history and the state insurance code in supporting both GEICO's coverage decision and the legitimacy of the PIP waiver, which was approved by the insurance division.
