2006 INSURANCE LEGISLATIVE PROGRAM

Following is The Business Council's 2006 Legislative Program. It identifies priority issues to be addressed by the Committees and Councils during 2006.

General

  • Support measures to reform New York State's tort system.

  • Support reduction in premium taxes on the insurance industry in New York.

  • Oppose the excessive sub-allocation of funds from the Insurance Department budget to other agencies, which are funded by assessments on insurance carriers.

  • Oppose legislation to place limitations on policy or coverage exclusions.

  • Establish performance standards for the Department of Insurance Fraud Unit including an annual report on the activities of the unit.

  • Support the reform of Sections 240 and 241 of the Labor Law.

  • Support legislation repealing joint and several liability.

  • Oppose any further prohibition, restrictions or penalty for the use of statistically valid risk indicators.

  • Support reasonable standards to promote insurance company solvency and oppose unreasonable restrictions and burdensome reporting requirements on investment powers of the insurance industry.

  • Ensure that identity theft and social security number restriction legislation continues to permit insurers to use SSNs and credit reports for necessary business functions.

  • Oppose the use of fines and penalties for specific revenue purposes.

  • Support legislation to make permanent the law allowing the expanded use of derivative and replication transactions as part of an insurer's investment plan.

Health & Life

  • Support the continuation of the streamlined process for file and use policy forms with the insurance department.

  • Support "speed-to-market" initiatives and the Interstate Compact Proposal which will serve to expedite uniform product approval processes, as set forth by the National Association of Insurance Commissioners (NAIC), the National Conference of Insurance Legislators (NCOIL) and the National Conference of State Legislatures (NCSL).

  • Oppose increases in the premium tax or the imposition of any new taxes on insurers.

  • Support legislation to regulate viatical and life settlements provided such legislation does not impose unreasonable requirements on life insurers.

  • Oppose the inclusion of variable life insurance and variable annuities within the definition of "security" in the Uniform Securities Act as proposed by the National Conference of Commissioners on Uniform State Laws (NCCUSL).

  • Support health plan flexibility to market products that increase cost sharing through flexible copayments of specific services or providers.

  • Support legislation which would authorize designation of funeral firms as beneficiaries of certain life insurance policies and allow for the payment of commissions on such policies to funeral directors who are also licensed life insurance agents.

  • Oppose efforts to limit health insurer/HMO ability to recover overpayments, incorrect payments, etc., from health care providers without having to demonstrate fraud.

  • Oppose efforts to limit or prohibit insurer/HMO subrogation rights when a subscriber is awarded is damages from a third party, including health care costs, for services paid for by a health insurer/HMO.

  • Oppose efforts to broaden the standard of liability and increases in damages on health plans and providers.

  • Oppose further expansion of mandatory and make-available health insurance coverage of specific benefits and services, and support the requirement of a fiscal analysis of all insurance mandates prior to legislative consideration.

  • Oppose universal health insurance measures which require employers to either provide health insurance or pay financial assessments.

  • Support the adoption of health plans risked based capital standards or increased reserve requirements.

  • Support the adoption of the Medicare 95% standard used to determine if a health plan is compliant with statutory prompt payment requirements.

  • Oppose efforts to change existing utilization management and prompt payment requirements that would prevent proper investigation of fraud and abuse.

  • Support increased funding for report card and other quality measurement tools to provide more meaningful information and accountability to group purchasers.

  • Encourage managed care for all applicable lines while opposing legislation which impedes the growth of managed care including "any willing provider" and "unitary pricing" proposals.

  • Support increasing the capacity for international investments by life insurers.

  • Support legislation that will make permanent the revision to the formula establishing surplus limits for certain domestic life companies.

Property & Casualty

  • Support voluntary market solutions to insurance market availability problems, including but not limited to coastal insurance issues.

  • Support rate and form modernization to promote market based solutions.

  • Support legislation reforming the Workers Compensation system that results in cost savings to the system.

  • Support proposals to deter no-fault fraud.

  • Support long-term reform of state guaranty fund system to help secure stability and solvency of the guaranty fund.

  • Support legislation amending the Standard Fire Policy to eliminate coverage for "fire following" a terrorist event.

Click here for the 2006 Legislative Program for all Issue areas.