Lininger-Property & Casualty Legislative Up-date 2013-10


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Brett S. Lininger, Esq., Principal at Semmes, Bowen, Semmes presented - “Property & Casualty Legislative Up-Date” at the October 2013 67th Annual F. Addison Fowler Seminar held by The Insurance Roundtable of Baltimore in Hunt Valley, MD

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Lininger-Property & Casualty Legislative Up-date 2013-10

  1. 1. Insurance Roundtable of Baltimore 67th Annual F. Addison Fowler Seminar PROPERTY AND CASUALTY LEGISLATIVE/REGULATORY UPDATE Brett S. Lininger, Principal Semmes, Bowen & Semmes October 11, 2013
  2. 2. PROPERTY and CASUALTY • Legislative Activity • Regulatory Activity WORKERS’ COMPENSATION • Legislative Activity • Regulatory Activity 2014 STATE ELECTIONS
  3. 3. PROPERTY and CASUALTY LEGISLATIVE ACTIVITY HB 342 (Chapter 270)/SB 446 (Chapter 269) Homeowner's or Renter's Insurance and Private Passenger Motor Vehicle Insurance - Bundling Requirement – Prohibited • Prohibits an insurer from denying, refusing to renew, or cancelling coverage because individual fails to carry another line with insurer or another insurer in the same insurance holding company system
  4. 4. PROPERTY and CASUALTY HB 392 (Chapter 111) Motor Vehicle Liability Insurance - Personal Injury Protection Coverage - Prohibition on Premium Increase • Prohibits an insurer that issues a policy with PIP from increasing the premium on the policy due to a PIP claim or payment
  5. 5. PROPERTY and CASUALTY HB 537 (Chapter 377) Insurance Producers - Continuing Education - Online Courses • Prohibits Insurance Commissioner from disapproving CE course solely on the basis of methodology or technology used to deliver instruction to individuals taking course • Allows producer to obtain all or part of required CE credit hours from correspondence or online courses
  6. 6. PROPERTY and CASUALTY HB 585 (Chapter 505) Procurement - Subcontractor Equal Access to Bonding Act of 2013 • Prohibits prime contractor from requiring sub-contractor to provide a bid, performance, or payment bond on procurement contract for services, supplies, or constructionrelated services with State, more stringent than current law • Requires prime to accept bond by sub if it would be accepted by State and provided by surety company authorized to do business in State or Maryland Small Business Development Financing Authority
  7. 7. PROPERTY and CASUALTY HB 695 (Chapter 383) Homeowner's Insurance - Anti-Concurrent Causation Clause Notice and Study • Notification requirements • Study of how anti-concurrent clauses have been applied in other states and to determine with whom insureds communicate for an explanation of a clause
  8. 8. PROPERTY and CASUALTY Bulletin 13-18 Homeowners Insurance Anti-Concurrent Causation Clause – Notice & Study • Clarifies the applicability of the notice required by HB 695 is to insurers offering homeowner’s insurance which includes coverage for fire, extended coverage, vandalism and malicious mischief, burglary, theft, or personal liability • • Does not include an umbrella policy Committees conducting study
  9. 9. PROPERTY and CASUALTY HB 1089/SB 919 Motor Vehicle Laws - Rental Vehicles - Required Security • Would have allowed coverage for owners of rental vehicles to be secondary behind the renter's primary coverage • Stems from Virginia holding that self-insured car rental company was permitted to seek reimbursement from renter's personal automobile insurer after company satisfied damages caused by renter of vehicle • Referred to interim study by Committees of jurisdiction
  10. 10. PROPERTY and CASUALTY HB 1132 (Chapter 74) SB 749 (Chapter 73) Maryland Automobile Insurance Fund - Operational Changes • • • • • Restructures MAIF Board Removes the AG's office as legal counsel Removes MAIF employees from State Personnel System State auditors no longer responsible for auditing MAIF Exempts MAIF from procurement laws relating to real estate
  11. 11. PROPERTY and CASUALTY SB 930 (Chapter 334) MAIF – Acceptance of Premium Payments on Installment Basis and Premium Finance Agreements • Authorizes MAIF to accept premiums on installment basis • Requirements of MAIF installment plan • For 12 month policy w/ less than $3k annual premium, initial payment at least 25% of annual premium and offer no more than 6 installment payments • If more than $3k, initial payment at least 20% of annual premium and no more than 8 installment payments
  12. 12. PROPERTY and CASUALTY HB 1203 (Chapter 406) Homeowner's or Renter's Insurance - Policy Exclusions for Specific Breeds or Mixed Breeds of Dogs – Notices • Requires insurers to disclose when policy excludes coverage for certain breeds of dogs and which breeds or mixes
  13. 13. PROPERTY and CASUALTY SB 736 (Chapter 311) Insurance - Fraudulent Insurance Acts - Compensation for Deductible • Prohibits contractors from directly or indirectly compensating (or offering or promising to do so) an insured, with intent to defraud an insurer, for any part of an insurance deductible under insured's property or casualty insurance policy if payment for services will be made from proceeds of policy • Violation is fraudulent insurance act, subject to criminal penalties
  14. 14. PROPERTY and CASUALTY HB 1205 (Chapter 407) Study of Captive Insurers • Requires MIA to study methods to establish and properly regulate captive in Maryland
  15. 15. PROPERTY and CASUALTY REGULATORY ACTIVITY Bulletin 13-25 Rate Filings – Content of Filings and Right of Public Inspection • Reminder that all P&C rate filings and any supporting information filed is open to public inspection • “any supporting information” includes underwriting standards except when confidentiality is requested & they serve to determine eligibility with no impact on premium
  16. 16. PROPERTY and CASUALTY Bulletin 13-09 Underwriting Period – Discovery of a Material Risk Factor • SB 531 (Chapter 253) • Allowed insurer to recalculate premium during underwriting period based on finding material risk w/o cancelling • Draft Regulations called for insurer to identify the newly discovered material risk(s) and specify how each risk impacted premium • Industry would prefer to disclose material risk(s) but show before and after comparison
  17. 17. PROPERTY and CASUALTY Percentage Deductible MIA Regulations held up by AELR Committee • MIA held meeting with industry to address applicability concerns • No substantive changes made to regulations
  18. 18. PROPERTY and CASUALTY MAIF Regulations Binding Rules • An attempt to address how to handle a producer’s loss of license • Sought to make MAIF policies the sole and exclusive property of MAIF • Would have allowed MAIF to terminate producer’s right to service MAIF if producer’s right to bind coverage was terminated • Regulations pulled due to agent community response and willingness to discuss alternative solutions
  19. 19. WORKERS’ COMPENSATION LEGISLATIVE ACTIVITY HB 370 (Chapter 226)/SB 313 (Chapter 225) Workers' Compensation - Anne Arundel County Deputy Sheriff • Specifies that, in Anne Arundel County, the deputy sheriff is eligible for enhanced workers' compensation benefits for a permanent partial disability
  20. 20. WORKERS’ COMPENSATION SB 139 (Chapter 184) Health Care Practitioners - Prescription Drug or Device Dispensing - Medical Facilities or Clinics That Specialize in Treatment Reimbursable Through Workers' Compensation Insurance • Requires dentists, physicians and podiatrists that primarily treat workers’ compensation patients to obtain a dispensing permit in order to dispense a prescription drug or device • Removed an existing exemption
  21. 21. WORKERS’ COMPENSATION HB 1330 (Chapter 676) Workers' Compensation - Insurance Coverage - Employer Compliance • Modifies procedures for the Workers’ Compensation Commission to enforce requirement that employers secure workers' compensation insurance for covered employees • Alters the penalty for noncompliance not to exceed $10,000 to be paid to the Uninsured Employers' Fund • Establishes liability for companies who are unable to pay any fine which is imposed upon them
  22. 22. WORKERS’ COMPENSATION SB 65 (Chapter 16) Workers' Compensation - Claim Processing - Electronic Delivery of Decisions • Authorizes the Workers' Compensation Commission to send copies of its decisions and orders electronically if the party's attorney of record or, if unrepresented, the party itself consents
  23. 23. WORKERS’ COMPENSATION SB 80 (Chapter 177) Public Health - Prescription Drug Monitoring Program Disclosure of Prescription Monitoring Data • Adds the Division of Drug Control to the list of entities to which the Prescription Drug Monitoring Program must disclose prescription data
  24. 24. WORKERS’ COMPENSATION HB 1389/SB 914 Workers' Compensation - Reimbursement for Drugs - Fee Schedule and Requirements • Introduced on behalf of the national workers' compensation insurers who were seeking to establish a fee schedule to address the issue of physician dispensing prescriptions to workers' compensation patients • On the heels of an effort, in 2011 and 2012, by the Workers' Compensation Commission to promulgate regulations in same vein • Called for the Commission to develop regulations using the manufacturer's average wholesale price for prescriptions in this setting
  25. 25. WORKERS’ COMPENSATION HB 174/SB 247 Workers' Compensation - Payment for Physician-Dispensed Prescriptions - Limitations • Did not pass, but very important • • • • Sought to address the ongoing problem of physicians dispensing prescriptions in their offices to workers' compensation patients Originally limited the insurers' or employers' liability for such prescriptions to 72 hours after first consultation Amended to limit liability to 30 days after first consultation Goal of educating the respective committees was met
  26. 26. WORKERS’ COMPENSATION HB 959 Workers' Compensation - Retaliation by Employer Prohibition • Would have prohibited employer from retaliating in any way against a covered employee because employee files claim for workers' compensation • Would have authorized a covered employee who is aggrieved by a violation to bring civil suit against employer • Supported by trial bar • Referred to interim study by House Economic Matters
  27. 27. WORKERS’ COMPENSATION HB 955 (Chapter 394) Task Force to Study Temporary Disability Insurance Programs and the Process for Assisting Individuals with Disabilities at Local Departments of Social Services • Study benefits available under State and Federal law to people who become disabled due to non-work related illness or injury • Study wage replacement benefits available • Make recommendations for temporary disability insurance program in Maryland
  28. 28. WORKERS’ COMPENSATION HB 1314/SB 681 Workers' Compensation - Insurance Coverage - Employer Compliance • Sought to delay by two years effective date of changes to the medical presumptions for firefighters and related personnel to allow medical expert to conduct study on presumption issue • Expect issue of presumptions for firefighters and other emergency personnel to be ongoing debate
  29. 29. WORKERS’ COMPENSATION Workers’ Compensation Commission Stability • • • • • One of the strongest systems in the country Forward thinking Commission Commissioners routinely reappointed No regulatory complaints against insurers in the WC arena Audits of insurers and self-insurers going well
  30. 30. WORKERS’ COMPENSATION REGULATORY ACTIVITY Regulatory Re-write Statutorily required non-substantive review of regulations • Held preliminary hearings on draft regulations • • WCC pulled regulations to revisit with new AAG Expected to be completed by end of year
  31. 31. 2014 STATE ELECTIONS Gubernatorial • Lt. Governor Anthony G. Brown • Democrat • Former Delegate from Prince George’s County • Ken Ulman (Lt. Governor Candidate) – Howard County Executive
  32. 32. 2014 STATE ELECTIONS Gubernatorial • Attorney General Douglas F. Gansler • Democrat • Montgomery County State’s Attorney • Has not announced Lt. Governor Running Mate
  33. 33. 2014 STATE ELECTIONS Gubernatorial • Heather R. Mizeur • Democrat • Delegate from Montgomery County
  34. 34. 2014 STATE ELECTIONS Gubernatorial • David R. Craig • Republican • Harford County Executive • Former State Senator
  35. 35. 2014 STATE ELECTIONS Gubernatorial • Ron George • Republican • Delegate from Anne Arundel County
  36. 36. 2014 STATE ELECTIONS Attorney General • Brian Frosh • Chair of Senate Judicial Proceedings Committee • Senator from Montgomery County for 18 years • Practicing attorney for 37 years
  37. 37. 2014 STATE ELECTIONS Attorney General • Jon Cardin • Delegate from Baltimore County since 2003 • Name recognition • Practicing attorney for 12 years
  38. 38. 2014 STATE ELECTIONS Attorney General • C. William (Bill) Frick • Delegate from Montgomery County since 2007 • Practicing attorney for 13 years
  39. 39. 2014 STATE ELECTIONS Attorney General • Aisha Braveboy • Delegate from Prince George’s County since 2007 • Practicing attorney for 13 years
  40. 40. 2014 STATE ELECTIONS Comptroller • Peter Franchot • Contemplated run for Governor • Will seek re-election
  41. 41. 2014 STATE ELECTIONS Maryland General Assembly • Over 38 current members will not maintain current seats • Over 20% of the Legislature
  42. 42. 2014 STATE ELECTIONS Maryland General Assembly • Senate Finance Committee • Major changes • 4 out of 11 leaving • Chairman Thomas McClain (“Mac”) Middleton • Democrat, District 28, Charles County • Should be safe despite changing demographics • Vice Chairman John Astle • Democrat, District 30, Anne Arundel County • Should be safe
  43. 43. 2014 STATE ELECTIONS Maryland General Assembly • Rob Garagiola • Democrat, District 15, Montgomery County • Former Majority Leader • Resigned as of September 1, 2013 • Barry Glassman • Republican, District 35, Harford County • Running for Harford County Executive • Unopposed • Delores Kelley • Democrat, District 10, Baltimore County • Tougher than normal race due to redistricting
  44. 44. 2014 STATE ELECTIONS Maryland General Assembly • Allan Kittleman • Republican, District 9, Carroll & Howard Counties • Running for Howard County Executive • Katherine Klausmeier • Democrat, District 8, Baltimore County • Should be safe • Jim Mathias • Democrat, District 38, Somerset, Wicomico & Worcester Counties • Should be safe, although had tough race to get the seat
  45. 45. 2014 STATE ELECTIONS Maryland General Assembly • E. J. Pipkin • Republican, District 36, Caroline, Cecil, Kent & Queen Anne's Counties • Resigned August 2013 to pursue master’s degree in sports management • Catherine Pugh • Democrat, District 40, Baltimore City • Should be safe • Victor Ramirez • Democrat, District 47, Prince George's County • Should be safe
  46. 46. 2014 STATE ELECTIONS Maryland General Assembly • House Economic Matters Committee • Significant change • 8 out of 23 leaving House of Delegates • Chairman Dereck Davis • Democrat, District 25, Prince George's County • Should be safe • Vice Chairman David Rudolph • Democrat, District 34B, Cecil County • Should be safe
  47. 47. 2014 STATE ELECTIONS Maryland General Assembly • Charles Barkley • Democrat, District 39, Montgomery County • Should be safe • Benjamin Barnes • Democrat, District 21, Anne Arundel & Prince George's Counties • Should be safe • Aisha Braveboy • Democrat, District 25, Prince George's County • Running for Attorney General
  48. 48. 2014 STATE ELECTIONS Maryland General Assembly • Emmett Burns • Democrat, District 10, Baltimore County • Not seeking re-election • Galen Claggett • Democrat, District 3A, Frederick County Counties • Running for Mayor of Frederick • Brian Feldman • Democrat, District 15, Montgomery County • Filled Senator Garagiola’s vacated seat
  49. 49. 2014 STATE ELECTIONS Maryland General Assembly • Jeannie Haddaway-Riccio • Republican, District 37B, Caroline, Dorchester, Talbot & Wicomico Counties • Running for Lieutenant Governor on Republican ticket • Stephen Hershey • Republican, District 36, Caroline, Cecil, Kent & Queen Anne's Counties • Filled Senator Pipkin’s vacated seat • Tom Hucker • Democrat, District 20, Montgomery County • Should be safe
  50. 50. 2014 STATE ELECTIONS Maryland General Assembly • Rick Impallaria • Republican, District 7, Baltimore & Harford Counties • Should be safe • Sally Jameson • Democrat, District 28, Charles County • Tough race as a result of changed demographics • Ben Kramer • Democrat, District 19, Montgomery County • Should be safe
  51. 51. 2014 STATE ELECTIONS Maryland General Assembly • Mary Ann Love • Democrat, District 32, Anne Arundel County • Seeking re-election? • Brian McHale • Democrat, District 46, Baltimore City • Not seeking re-election • Warren Miller • Republican, District 9A, Howard County • Should be safe
  52. 52. 2014 STATE ELECTIONS Maryland General Assembly • Sonny Minnick • Democrat, District 6, Baltimore County • Not seeking re-election • John Olszewski, Jr. • Democrat, District 6, Baltimore County • Running for Norman Stone’s Senate seat (retiring) • Steve Shuh • Republican, District 31, Anne Arundel County • Should be safe
  53. 53. 2014 STATE ELECTIONS Maryland General Assembly • Kelley Schulz • Republican, District 4A, Frederick County • Should be safe • Donna Stifler • Republican, District 35A, Harford County • Running? • Should be safe • Michael Vaughn • Democrat, District 24, Prince George's County • Should be safe
  54. 54. 2014 STATE ELECTIONS Important Dates • Primary Election • June 24, 2014 • General Election • November 4, 2014