NAMIC: N.D. Loss-History Bill Will Have ‘Immediate Impact’

Legislation enacted by the North Dakota legislature will have “a fundamental and immediate impact” on how insurers conduct business in the state, according to a spokesman from the Indianapolis-based National Association of Mutual Insurance Cos.

Among the key developments during the 76-day session, which ended April 23, were proposals to restrict an insurers’ use of loss-history reports and to create a terrorism exclusion to the state’s Standard Fire Policy.

SB 2186 restricts the use of loss-history reports in personal insurance. Gov. John Hoeven signed the bill into law on April 22 and it will become effective on Aug. 1 of this year. According to NAMIC, the legislation will prohibit insurers from surcharging, canceling, nonrenewing or declining coverage for personal insurance under the following circumstances:

—An insured’s inquiry into the type or level of coverage or an inquiry into whether a policy will cover a loss;
—An insured’s inquiry regarding coverage for a loss if the insured files no claim;
—A claim if the insurer conducts no investigation of a claim or initiates no other claim activity and the claim does not involve deceptive practices on the part of the insured;
—A claim if the insurer makes no payment to or on behalf of the insured and the claim does not involve deceptive practices on the part of the insured;
—A first-party property claim resulting from wind or hail if the insured had no previous wind or hail claim on that property within the previous five years regardless of the insurer unless the insurer can provide evidence that the insured unreasonably failed to maintain the property and the failure to maintain the property contributed to the loss; or
—A claim if the claim is more than 10 years old, unless the insurer can provide evidence that the insured unreasonably failed to maintain the property and the failure to maintain the property contributed to the loss.

NAMIC praised Commissioner Jim Poolman for his support of SB 2094, which creates a terrorism exclusion in the state’s Standard Fire Policy.

Topics Carriers Profit Loss Property