Many Comp Bills Introduced, But Few Pass

ORLANDO, FLA.--The number of bills introduced in state legislatures this year to change workers' compensation laws soared by 60 percent, but few measures have passed, an industry group reported.

The lawmaking activity was a topic during a workshop on regulatory and legislative trends at the National Council on Compensation Insurance Annual Issues Symposium here yesterday.

Helen Westervelt, NCCI president of regulatory services, said the number of workers' comp-related measures in state legislatures hit 7,372 this year, compared with 4,500 last year.

Among top topics were medical and indemnity benefits, first responders, independent contractors and health care, she said.

However, despite all the bills being introduced, seven legislatures have already adjourned their sessions, with only 23 measures passed.

Ms. Westervelt said the increase in legislation had been prompted by midterm elections that brought in new officeholders and changed the complexion of state legislatures.

At this point, she noted, there has been a 5 percentage point change in party control, with Democrats controlling both houses in 23 states and Republicans leading the two chambers in 15 states. Party control is split in 11 states. Nebraska is unicameral.

Ms. Westervelt mentioned that there has also been more change in state insurance regulators, with 15 newly-elected or appointed commissioners. Among all state commissioners, the majority have less than two years in office, she said.

At the federal level, she said, the top legislative issues for the comp sector are: ensuring there is a government backstop for insurers' terrorism catastrophe losses; protecting the McCarran-Ferguson Act provisions that allow exchange of loss data and other actuarial information; and the application of any optional insurance company charter measure.

On the state level, she said, terrorism risk insurance is an issue, as well as regulation of professional employer organizations and independent contractors.