Legislation that will allow business owners to lower their insurance costs highlighted the action on insurance-related measures during the recently concluded legislative session, according to Sam Sorich, regional vice president of the Property Casualty Insurers Association of America (PCI).
“The pro-business bill is HB 2192. It will give businesses a cost-saving option in selecting their fire insurance coverage that does not now exist. Under the current law, all commercial fire policies must include coverage for acts of terrorism,” said Sorich.
“HB 2192, which was sponsored by PCI, will allow business owners to purchase fire policies without the terrorism coverage and, thereby, lower their premiums.”
The bill was signed into law by the governor on April 25.
In other insurance-related action, the Legislature this session approved:
SB 1089, which would require the impound of a vehicles if the drivers have had their driving privileges revoked. Insurers would not be required to cover the cost of the impoundment. This measure was passed by the Legislature on May 11. The governor has until May 25 to act on the bill.
SB 1420, which increases the penalties for failure to comply with the financial responsibility requirements. This bill was signed into law on April 18.
SB 1251, which allows the awarding of punitive damages and attorney fees in liability cases involving abuse by an elder care provider. The bill was signed into law April 18.
HB 2190, which makes it clear that at least one person in any office where surplus lines insurance is transacted must hold a surplus lines brokers license. The bill was signed into law May 9.
HB 2600, which amends the financial requirements for captive insurance companies. The bill was signed into law April 20.
The bills signed into law by the governor will become effective Aug. 12, 2005. The only exception is HB 2190, part of which becomes effective June 30, 2005.
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