They’re Baaaaack!

The lawmakers are back, at least in most of the Western states, such as Arizona, Colorado, Hawaii, Idaho, Montana, Oregon, Nevada, New Mexico, Utah, Washington and Wyoming. California legislators are back as well, but it appears that they’re present more so in body than in mind and spirit.

In Oregon, legislators are considering a bill that would prohibit premium increases based on a consumer’s request to have his or her insurance/credit score re-rated. The bill, if passed, could create a variable rating system, in which consumers with the same scores could pay different rates, according to the Independent of Insurance Agents and Brokers of Oregon, which opposes the bill.

Meanwhile in Washington, legislators are considering implementing pay-as-you-drive insurance premiums based on mileage driven, if they can come up with a sound proposal to track mileage without violating an individual’s privacy.

Wyoming and Montana are evaluating their states’ workers’ compensation systems. Some in Wyoming hope to hold oil and gas operators liable for their own negligence in on-the-job injuries, whereas currently such companies owe no “duty of care” to contract employees. And Montana lawmakers are aiming for more oversight of the State Fund, in which the Fund would undergo financial examinations.

In Utah, legislators are considering restricting the use of cell phones while driving, an issue that is not exactly insurance, but definitely has an impact on the industry. The bill would prohibit texting and e-mailing while driving, and specifically ban teens from using any wireless device while driving.

And despite all of that legislative activity, the Golden State has been stymied by lawmakers’ inability to pass a budget. As of press time, Gov. Arnold Schwarzenegger noted the state was ready to begin layoffs for 20,000 government workers and halt work on public works projects — all because legislators could not agree on a plan to close the state’s $42 billion shortfall. In 2009 alone, the state is facing a $11.2 billion revenue shortage.

The proposed budget currently needs two-thirds majority in the state Assembly to end the stalemate. Democrats are accused of using the state’s fiscal crisis as an excuse to raise taxes, which Republicans oppose. But regardless of whether you’re a Republican or Democrat, after day 104 the legislature’s “failure to act” on the budget, as tallied by the Governor, it’s reasonable to begin questioning why these lawmakers were elected.

The main job of any legislative body is to pass and amend laws that shape politics, economics and society — something that’s clearly not happening in California. Until these politicians put some of their differences aside to come to a compromise, the state is in a standstill that will trickle down to other businesses. (Some restaurants are already complaining about drops in income in locations where state employees have been furloughed.) So, let’s hope they soon realize that more layoffs and shut-downs in business operations won’t help any industry operating in the state, insurance included.

Topics Legislation Oregon Montana