The winding down mode has started. Local malls are alreadydecked out for the holidays, and the retail industry is awaitingthe much anticipated and beloved "Black Friday." In the insuranceindustry, those essentially year-long legislative sessions, whilealready having delivered gifts wrapped up as "acts," still holdpotential holiday surprises. A brief look back at some enactedbills in Midwestern states with lengthy sessions—Illinois,Michigan, and Wisconsin—provides us with some key changes, as wellas anticipation of what might be in store in the coming months. 

Illinois legislative activity reminds us that this was just oneof the many states this year that enacted a version of the Portable Electronics Insurance Act, with its Act 366. This typeof insurance, generally offered to the consumer by a vendorauthorized under the individual state's statutory provisionslimited lines insurance licensing process, requires certaindisclosures. These can include the identity of the insurerunderwriting the coverage, claims filing information, as well as astatement that the insurance purchase is not a requirement of thesale or lease of the device and that coverage may duplicateexisting coverage under a personal homeowners' or renters'policy.

Navigating Auto Underwriting

Illinois also passed HB 1378, effective Aug. 9, 2011, toaddresses motor vehicle insurance underwriting. Insurers areprohibited from refusing to issue vehicle insurance to a personsolely because the applicant is a volunteer driver. Similarprohibitions are also established regarding surcharges or rateincreases for this type of insurance policy.

Automobile insurers writing in the neighboring state of Michiganhave upcoming certificate of insurance requirements under thisyear's SB 441. Beginning on Dec. 30, 2011, those insurers mustprovide to the insured one certificate of insurance for eachinsured vehicle. Moreover, for private passenger non-fleetautomobiles listed on policies, insurers will be required toprovide the secretary of state information. This includes theinsurer's name, the named insured, the named insured's address, thevehicle identification number (VIN) for each such vehicle listed onthe policy, and the policy number. The data reporting timeframe,frequency, and format will be determined by the secretary ofstate's office.

Also on the automobile front, Wisconsin's AB 4, effective Nov.1, 2011, once again revises the minimum limits for auto insurancecoverages and takes some additional steps in the fight againstphantom vehicle fraud.  

What could the rest of this year bring from these states? Onepossible candidate for enactment is the currently pending MichiganHB 5002, which proposes some significant changes to workers'compensation insurance. Among those changes are revised definitionsof an injury and wage earning capacity, with the latter meaning"the wages the employee earns or is capable of earning at a jobreasonably available to that employee, whether or not actuallyearned." Potential changes like this one have already resulted inmuch controversy and debate in the legislative process.

Like holiday gifts, there really is no one-size-fits all when itcomes to legislative changes in the insurance industry. Whether youare welcoming some of these changes, or dreading what lies ahead,there is no doubt the coming months will hold a level ofanticipation for everyone involved.