Legislative Update is a brief synopsis of relevant legislative activity currently taking place in Accident Fund core and accommodation states. For more details or further documentation on any of these legislative activities, contact your business development consultant.
Federal
National Association of Registered Agents & Brokers
The National Association of Registered Agents & Brokers (NARAB), established by legislation that also extended the federal government’s terrorism insurance backstop through 2020, will be a nonprofit. Its board of directors, consisting of eight current and former state regulators and five other members with expertise in producer licensing, will set membership standards for eligible nonresident insurance producers and provide access to every state on a nonresident basis.
The law, supported by the National Association of Insurance Commissioners, preserves states’ rights on resident licensing, continuing education and other issues of interest to state regulators. There’s a lot that has to go well before the national broker licensing clearinghouse is up and running. The first step could be complete in April, when President Barack Obama names the 13 board members, which the law requires be done within 90 days of the law’s Jan. 12 effective date. Still, questions of standards required of producers to participate, as well as how the body will be funded, remain unanswered.
Growing Threat of Prescription Drug and Opioid Abuse
The Subcommittee on Oversight and Investigations, has scheduled a hearing entitled, “Examining the Growing Problems of Prescription Drug and Heroin Abuse: State and Local Perspectives.” The subcommittee will continue its review of the growing prescription drug and opioid abuse problem across America.
State
Tennessee
The proposed Tennessee opt-out initiative, SB 721, is anticipated to receive an Advisory Council hearing in the near future. AFHI’s national trade partner AIA will offer opposition testimony against the bill at that meeting. We do not expect the bill to receive a positive recommendation from the Advisory Council. However, the Council’s recommendation is not binding upon the General Assembly and we expect the Senate Commerce and Labor Committee will pass substitute opt-out proposals regardless of the Council’s failure to recommend passage. It appears the proposal may not currently have strong support in the House. AFHI will keep you apprised of further developments.
Illinois
Numerous workers’ compensation legislative proposals have been introduced in both the House and the Senate. Many of these proposals’ chances of success are minimal and it appears many are headed to subcommittees for possible consideration. Recently, the House Labor Committee met and heard testimony on the effects of the workers’ compensation reforms that were enacted in 2011. In brief, NCCI outlined a cumulative 18.1% advisory rate reduction (over four years), business groups noted the modest to limited effect of the reforms, medical providers decried the fee reductions and the labor/attorney coalition voiced concern over carrier profits. AFHI will continue to monitor the political situation in Illinois, taking action in coordination with the Illinois Insurance Association, if we feel it benefits the industry.
North Carolina
North Carolina Rules Review Commission approved the Industrial Commission’s Workers’ Compensation Medicare-based fee schedules. These fee schedules were the result of a two-year negotiation between the industry, business community, hospitals and doctors. The fee schedule regulations become effective April 1, 2015 and July 1, 2015.
Disclaimer of Liability
This document is provided for informational purposes only and does not constitute legal advice. This information is subject to change. Every effort is made to provide accurate and complete information in Accident Fund Holding’s Legislative Update. However, Accident Fund Holdings makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents of the Update and expressly disclaims liability for errors and omissions in the contents of this newsletter.
We would like to thank agents who have attended our Annual Agent Meetings this year. We’ve enjoyed spending time with you as we celebrated another great year of partnership while recognizing some of our top agents and outlining our plans for 2015.
As your trusted business partner, we’re committed to providing you with resources and materials that help you easily sell the value of Accident Fund to prospective policyholders and at renewal. We offer you a wealth of materials that promote our loss control services, our superior claims management, our ease of doing business philosophy and our overall strength and stability.
