2004 LEGISLATIVE PROGRAM - INSURANCE
Following is The Business Council's 2004 Legislative Program. It identifies priority issues to be addressed by the Committees and Councils during 2004.
- Support legislation which would amend Article 13 of the Insurance Law to allow New York companies to comply with the new NAIC Statutory Accounting Practices and Procedures, with respect to admitted assets such as positive goodwill, EDP equipment and aircraft.
- Support legislation that would require the legislature to provide a fiscal analysis of all insurance mandates prior to legislative consideration.
- Oppose legislation which would place limitations on policy or coverage exclusions.
- Support an investment tax credit to provide companies with a credit for purchased or leased computer equipment used in the business of insurance in New York State.
- Support legislation which would establish procedures that must be followed when transferring the benefits, rights, privileges or options accruing under an annuity contract funding a structured settlement.
- Establish performance standards for the Department of Insurance Fraud Unit including an annual report on the activities of the unit.
- Support the repeal of Sections 240 and 241 of the Labor Law.
- Support the continuation of the streamlined process to file and use rates, as well as forms with the insurance department.
- Support legislation to create a new certified capital investment company to encourage development in lower Manhattan.
- Support legislation to expand insurers ability to access capital markets.
- Support tort reform proposals and other reforms to the civil justice system which would result in a fairer, more balanced and predictable system which minimizes regional differences.
- Oppose proposals to assess interest penalties, court costs, attorney's fees, or punitive damages in connection with claim settlements.
- Oppose proposals that would require prejudgment interest in personal injury actions or that would provide for non-economic damages in wrongful death cases.
- Oppose any further prohibition, restrictions or penalty for the use of statistically valid risk indicators.
- Oppose broadening the application of the Unfair Claims Settlement Practices Act, the Unfair Trade Practices Act, and Article 22-A of the General Business Law.
- 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 reasonable standards to promote insurance company solvency and oppose unreasonable restrictions and burdensome reporting requirements on investment powers of the insurance industry.
- Oppose legislative or regulatory restrictions on the ability of insurers to re-insure some or all of any risk written.
- Oppose the use of fines and penalties for specific revenue purposes.
- Oppose any mandate that integrates health and medical insurance with
auto medical and workers compensation insurance.
Health & Life
- Support "speed-to-market" initiatives 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), such as the Coordinated Advertising Rate & Form Review Authority (CARFRA) and the Interstate Compact proposals.
- Support legislation to make permanent the law allowing the expanded use of derivative and replication transactions as part of an insurer's investment plan.
- Support legislation to regulate viatical and life settlements provided
such legislation does not impose unreasonable requirements on life
- Oppose the Uniform Computer Information Technology Act (UCITA) as proposed by the National Conference of Commissioners on Uniform State Law (NCCUSL). 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 co-payments of specific services or providers.
- Oppose legislation defining medical necessity that would prohibit insurance carriers from performing utilization review.
- 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 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.
- Oppose universal health insurance measures which require employers to either provide health insurance or pay financial assessments.
- Oppose further expansion of the requirement to employ community rating/open enrollment beyond current law.
- 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 continuation and expansion of individual market subsidy programs so that group purchasers will not have to cross subsidize individual rates.
- Support increased funding for report card and other quality measurement tools to provide more meaningful information and accountability to group purchasers.
- All HCRA funding initiatives should be included in the approved state
Property & Casualty
- Support voluntary market solutions to insurance market availability problems, including but not limited to terrorism or coastal insurance issues.
- Support legislation to exempt large commercial risks from rigid rate and form regulation.
- Oppose further regulatory or legislative expansion of flex-rating for those lines that are presently open rated.
- Oppose legislative and regulatory expansion of dual authority between the Insurance Department and the Department of Motor Vehicles.
- Oppose mandated residual market mechanisms to lead liability problems
in order to encourage legislation promoting a lead safe environment.