Jan 18, 2018

PIACT sets priorities for 2018 legislative session

PIACT is gearing up for the upcoming short session of the Connecticut General Assembly, which begins Wednesday, Feb. 7, and runs through Wednesday, May 9.

The Joint Committee on Insurance and Real Estate is one of 26 committees, each consisting of representatives of the House and Senate. There are 21 members of the Insurance Joint Committee, including three joint-chairs this session. Due to the even split in the Senate, there is a Democrat co-chair, Sen. Timothy Larson, and a Republican co-chair, Sen. Kevin Kelly. They are joined by Rep. Sean Scanlon as the House co-chair. Once the proposed bills have been referred to the Joint Committee, the committee discusses them in a closed meeting. In this meeting, the bills are voted on and drafted, and are later released to the general public for comment. The public is invited to give comment at public hearings held throughout the session. Unlike in other states, Connecticut brings proposed legislation directly to the general public for open comment. Currently, the Committee has met once in an organizational meeting, but will meet more in the coming weeks.

Through a recent member survey, as well as committee and board discussions, PIACT has identified the legislative priorities on which members want it to focus for the upcoming year. The top priorities include:

Accurate quoting of automobile policies. This issue originated from the perceived practice of carriers re-rating policies as a result of running individuals’ motor vehicle reports after quoting or binding coverage. So, when an applicant agrees to the terms and price of a policy, he or she is not aware that the policy could be re-rated and often the premium is increased substantially. Colloquially, this issue is known as "bait-and-switch." This practice is damaging to professional independent producers. PIACT is committed to addressing this issue to ensure a level playing field for producers.

Cybersecurity regulations. Mitigating the impact any impending cybersecurity regulation the state may consider is important, since it would have a major impact on agents and brokers who have resident and nonresident licenses in the state. Recent implementation of the New York cybersecurity regulation requiring insurance agents and brokers (among other entities) to establish and maintain a cybersecurity program to protect consumers has been incredibly difficult to comply with, and it affects resident and nonresident licensees. Since then, the National Association of Insurance Commissioners has incorporated aspects of New York’s regulation into the final draft of its model legislation. PIACT has been tracking this issue since New York announced its regulations.

Liquor liability. During the 2016 session, PIACT introduced, advocated for and testified on legislation creating this insurance requirement. Ultimately, the bill died in committee during that session. Under current state law, an establishment that serves alcoholic beverages is not required to carry liquor-liability insurance. While there is a dram-shop law in effect that imposes liability on the seller of alcohol and allows for an injured party to sue that seller, it does not provide any guarantee that the party will be able to recover damages. A mandatory liquor-liability policy required prior to the granting of a liquor permit would provide the consumer with a guarantee that financial recourse is available.

Association continuing education. PIACT plans to actively pursue legislation or regulation that allows the insurance commissioner to grant continuing-education credits for active membership in good standing of a qualified association. The concept recognizes that Connecticut’s insurance producer associations promote professionalism, best practices, ethical compliance, CE training and networking opportunities to their members; and that membership in these associations provide younger members an opportunity to be mentored by more established insurance producers thereby enhancing their business prospects.

For more information, access QS06104 in the PIA QuickSource library.