Legislative Report

January 10, 2014 BOSE PUBLIC AFFAIRS GROUP INSURANCE BULLETIN XIV, NUMBER 1

In This Issue

GENERAL ASSEMBLY OVERVIEW

The 2014 Indiana General Assembly got a delayed start this week due to historically cold and snowy weather in Indiana. After canceling the scheduled Monday session day, legislators made their way to Indianapolis on Tuesday to kick off the 2014 session. As a result of the delayed start, the bill filing deadline was extended by one day. Here are some key deadlines to bear in mind: January 14 State of the State Address January 15 State of the Judiciary Address January 28 House committee report deadline January 30 Senate committee report deadline; House Second Reading deadline January 31 House fallback Second Reading deadline February 3 House Third Reading deadline February 4 Senate Second Reading deadline February 5 Senate Third Reading deadline February 25 House committee report deadline February 27 Senate committee report deadline; House Second Reading deadline February 28 House fallback Second Reading deadline March 3 Senate Second Reading deadline; House Third Reading deadline March 4 Senate Third Reading deadline March 14 Adjournment Sine Die

General Assembly Overview State Assisted Retirement Plan Unclaimed Life Insurance Benefits Group Life Insurance Beneficiary Electronic Delivery of Insurance Notices and Documents Motor Vehicle Financial Responsibility Insurance Credit Scoring Nonparty Immunity

Useful Links House Committee Schedule Senate Committee Schedule Contact Your Legislator Indiana Register Contact Us 111 Monument Circle Suite 2700 Indianapolis, IN 46204 317-684-5400 www.bosepublicaffairs.com

Committee hearings began upon adjournment on Tuesday and lasted well into the evening a sign of the compressed timeline in a short session. We continue to receive House and Senate bill lists each day for review. The House Republican Caucus released their agenda on Wednesday to include issues such as state-funding for pre-kindergarten, increasing road funding, continuing to address the skills gap in the workforce, and stopping burdensome government regulations on businesses. One agenda item drawing much attention is the House Republican proposal on elimination of the business personal property tax. The House Republican proposal is a plan that gives counties a local option to lift the personal property tax only on new business equipment, not on existing equipment as Governor Pence proposed. The most controversial and attention-grabbing bill of the session was

filed and released this week: House Joint Resolution 3. HJR 3 provides that only marriage between one man and one woman shall be valid or recognized as marriage in Indiana. If approved by the legislature this year, the language will be placed on the ballot in November, 2014 for voter approval or disapproval of amendment into the state constitution. HJR 3 is assigned to be heard in the House Judiciary Committee on Monday, January 13. An interesting twist in the debate on this legislation is the filing of House Bill 1153, marriage amendment ballot language. HB 1153 requires that the question of approval of the constitutional amendment concerning marriage proposed by the 117th general assembly be placed on the 2014 general election ballot if the amendment is agreed to by the 118th general assembly. The bill also prescribes the ballot language for the question and describes the legislative intent of offering the constitutional amendment. The House and Senate will reconvene on Monday for what is shaping to be a very active week.

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STATE ASSISTED RETIREMENT PLAN

SB 66, authored by Sen. Greg Walker (R-Columbus), establishes a state-assisted retirement plan for private employers and employees. Provides that the treasurer of state is the administrator of the plan and the manager of the plan will be contracted out to a third party. Employers can participate in the plan only if the employer does not offer its employees a pension or retirement system of any kind. It also provides a tax credit to individuals that participate in the plan. This bill puts the govt in direct competition with private industries that offer retirement products. The bill passed out of the Senate Pension and Labor Committee on Wednesday and has been referred to the Senate Tax & Fiscal Committee for consideration.

UNCLAIMED LIFE INSURANCE BENEFITS

SB 220, authored by Sen. Travis Holdman, requires insurers to use the SSAs Death Master File or a database as inclusive to help with the accurate administration of unclaimed death benefits. Although not

scheduled yet, the bill is expected to receive a hearing in the Senate Insurance Committee.

GROUP LIFE INSURANCE BENEFICIARY

HB 1094, authored by Rep. Bob Heaton, allows a key employee (as defined under federal law) insured under an employer group life insurance policy to name the employer as a beneficiary. The bill has been assigned to the House Insurance Committee.

ELECTRONIC DELIVERY OF INSURANCE NOTICES AND DOCUMENTS

HB 1058 (Rep. Peggy Mayfield) provides for the electronic delivery of insurance notices and documents instead of other modes of delivery otherwise required for such notices and documents. The bill also requires a recipient's consent to electronic delivery and a method to withdraw consent. The bill was heard in the House Insurance Committee this week and received support from the Committee. However, due to several committee members being absent due to weather, the bill was held and is expected to receive a vote next week.

MOTOR VEHICLE FINANCIAL RESPONSIBILITY

HB 1059 (Rep. Matt Lehman) makes various changes to the motor vehicle financial responsibility law, including the: (1) definition of "registration" to include the license plate issued in connection with the registration of a vehicle; (2) requirement of proof of financial responsibility and reinstatement fees; (3) suspension of a registration as a consequence of operation of the vehicle without financial responsibility in effect; and (4) requirement of proof of future financial responsibility for five years related to operating a vehicle without financial responsibility in effect. The introduced version of this bill was prepared by the interim study committee on insurance. HB 1059 was heard this week in the House Committee on Roads and Transportation and passed the committee 11-0. HB 1059 will be eligible for second reading next week.

INSURANCE CREDIT SCORING

HB 1077 (Rep. Lehman) generally prohibits an insurer from considering credit information in connection with the renewal of a personal insurance policy. The bill also provides that: (1) if an insurer uses a credit report or insurance score to re-underwrite or re-rate a personal insurance policy at the request of the insured or the insured's agent at annual renewal; and (2) if the result is that the insured is eligible to

be placed in a less favorably priced tier; the insurer is required to maintain the insured in the insured's current tier. Lastly, HB 1077 removes a disclosure exemption. HB 1077 has been assigned to the House Insurance Committee and is awaiting a hearing.

NONPARTY IMMUNITY
Senator Brent Steele filed SB 40 which prohibits a defendant from asserting a nonparty defense, under which a defendant asserts that the damages of the claimant were caused in full or in part by a nonparty, if an Indiana statute grants the nonparty immunity from liability. The bill provides that the failure to assert a nonparty defense naming as a nonparty a person granted statutory immunity does not constitute legal malpractice. SB 40 has been assigned to the Senate Judiciary Committee and is awaiting a hearing. Please note that there are still many bills yet to be filed, including the IDOI bill, Environmental Pollution Exclusion, Consumer Lawsuit Lending and Workers Compensation (to name a few).

For more information

Trent Hahn tfhahn@bosepublicaffairs.com Mike OBrien mobrien@bosepublicaffairs.com Telephone: 317/684-5400 Fax: 317/684-5432