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

Illinois legislative activity reminds us that this was just one of the many states this year that enacted a version of the Portable Electronics Insurance Act, with its Act 366. This type of insurance, generally offered to the consumer by a vendor authorized under the individual state's statutory provisions limited lines insurance licensing process, requires certain disclosures. These can include the identity of the insurer underwriting the coverage, claims filing information, as well as a statement that the insurance purchase is not a requirement of the sale or lease of the device and that coverage may duplicate existing coverage under a personal homeowners' or renters' policy.

Navigating Auto Underwriting

Illinois also passed HB 1378, effective Aug. 9, 2011, to addresses motor vehicle insurance underwriting. Insurers are prohibited from refusing to issue vehicle insurance to a person solely because the applicant is a volunteer driver. Similar prohibitions are also established regarding surcharges or rate increases for this type of insurance policy.

Automobile insurers writing in the neighboring state of Michigan have upcoming certificate of insurance requirements under this year's SB 441. Beginning on Dec. 30, 2011, those insurers must provide to the insured one certificate of insurance for each insured vehicle. Moreover, for private passenger non-fleet automobiles listed on policies, insurers will be required to provide the secretary of state information. This includes the insurer's name, the named insured, the named insured's address, the vehicle identification number (VIN) for each such vehicle listed on the policy, and the policy number. The data reporting timeframe, frequency, and format will be determined by the secretary of state's office.

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

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

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

Special Reports /

Lengthy Sessions and Notable Changes in Midwest

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