ILLINOIS

Lawmakers Pass Kids’ Health Plan:

The Illinois House passed H.B. 806, Gov. Rod Blagojevich’s “All Kids” health insurance program on a 79-28 vote, following Senate approval on a 32-23 vote.

The program is aimed at parents who earn too much to qualify for Medicare or the state’s Kidcare program, but face hurdles in getting insurance through their own employer. Participants would pay deductibles and premiums based on income.

Swift passage of the plan through the House and Senate came after Blagojevich spent two weeks barnstorming across the state campaigning in support of the proposal.

The program will go into effect July 1, and is expected to enroll about 50,000 in the first year, according to the governor’s office. The program will be funded by moving most of the state’s 1.7 million Medicaid enrollees into a managed care style of health insurance, which officials say will save $56 million.

INDIANA

Ball State Targets More Insurance Jobs:

Indiana’s plan to market itself as an insurance hub is getting help from the faculty at the Center for Actuarial Science, Insurance and Risk Management at Ball State University in Muncie.

Steve Avila, the center’s co-director, is working with his counterparts at Indiana State University to help state leaders create more jobs in the insurance industry, according to the Muncie Star Press.

As a member of the Insurance Workforce Group, Avila is working on a strategic plan to boost insurance employment. According to data from 2003, Indiana ranked 17th in the nation with 60,240 insurance industry jobs.

The average salary for people working in insurance is $48,805, or roughly $10,000 more than the average Indiana resident makes. In 2003, insurance companies also added $175 million to the state’s tax coffers.

“There is a growing demand in the insurance industry for recent graduates who are well prepared, enthusiastic and have a strong work ethic,” said Avila, who leads the insurance and risk-management program.

Ball State has offered insurance and actuarial science courses for 30 years.

MINNESOTA

Jury Awards $720,000 for Wrongful Death:

A Minnesota jury’s award of more than $720,000 in a loss-of-relationship settlement is under fire by the insurance company involved, according to Associated Press.

A jury awarded the Hibbing, Minn., Rafinski family more than $720,000 for losing its relationship with son Ryan Rafinski, a 27-year-old who was killed in a car accident in April 2004. The lawsuit claimed damages for losing his “advice, comfort, assistance and protection.”

A plaintiff’s attorney said Western National Mutual Insurance offered $22,500 to settle before trial, arguing that plaintiff John Rafinski failed to notify it that Ryan was living with him.

John Rafinski’s attorney, Paul Schweiger, said the insurance company told him in 1999 that it could no longer insure him if Ryan was living with him because Ryan had several driving violations and two DWIs on his record.

John Rafinski was awarded $120,000 for past damages, $600,000 for future damages and about $11,000 for funeral expenses.

“This is a very large verdict, but Minnesota courts have always said that putting a value on the loss of a child is so difficult that it is peculiarly a task for the jury to undertake,” said University of St. Thomas Law School Prof. Robert Vischer.

William Mitchell College of Law Prof. Michael Steenson said the verdict wasn’t unprecedented, but, “That’s a lot of money in a wrongful-death case.”

MISSOURI

DOI Hits Felonious Bail Bond Agents:

Missouri Insurance Director Dale Finke announced a crackdown on bail bond agents with felony convictions who have obtained licenses from the Insurance Department during the past several years.

“The Missouri Supreme Court rules make it clear that convicted felons are not qualified for surety on bail bonds,” Finke said. “I have ordered a review of every bail bond agent license in Missouri and our preliminary findings are that a number of felons currently hold licenses granted during the last five years. I have ordered immediate changes to the license renewal process. Also today, we are beginning legal action to remove disqualified agents from our licensing rolls.”

Since Director Finke was sworn in as the director of Insurance, the department has denied bail bond agent licenses to eight convicted felons. However, convicted felons had been licensed as bail bond agents in prior years.

The DOI has filed an action before the Administrative Hearing Commission seeking the authority to suspend or revoke the license of James G. Cox. Cox obtained a license in May 2004, but is now in federal prison for conspiracy to violate civil rights.

NEBRASKA

Health Insurance Rises for Workers:

Nebraska state employees will pay 22.1 percent more for health insurance next year, after union representatives and administrators failed to reach a compromise.

The rising premiums will cost taxpayers about $21.4 million over the next year because the state, as the employer, pays 79 percent of the premium costs.

According to the Lincoln Journal Star, employees received a 3 percent pay increase in July, but for many, higher premiums will wipe out any take-home pay increase.

During discussions over the past few weeks, the union offered state administrators several alternatives, based primarily on the anticipation the actual cost increase would be less than the predicted 22.1 percent.

Because the plan is self-funded, the administration needs to make sure the dollars collected from premiums will cover the costs of claims.

The actuarial study indicates state employees used more health care than they had used in the past, and more than consultants predicted.

About 14,000 state employees purchase the health insurance. Employees will receive information on the increases during the health plan sign-up period Nov. 7 to Dec. 2.

NORTH DAKOTA

Insurers Need Notice on Credit Scores:

North Dakota Insurance Commissioner Jim Poolman has issued a memorandum to property/casualty insurers writing business in the state stating companies using credit-based insurance scores in the underwriting and rating of business are “expected” to provide “adverse action” notification.

In accordance with the 9th Circuit Federal Court decision in Reynolds v. Hartford Financial Services, et al., the Fair Credit Reporting Act (FCRA) requires provision of adverse action notification anytime a higher rate is charged based on credit, regardless of whether it is an initial quote or a renewal rate. The three-judge panel opinion also states that failure to make such disclosures is a “willful” violation of law, which would allow consumers to sue for damages if they can prove they were not provided notice.

The National Association of Mutual Insurance Companies (NAMIC) and other interested parties have filed briefs calling for the full 9th Circuit (en banc) to hear the case.

OHIO

Gov. Names Mabe CEO of Comp Bureau:

Ohio Gov. Bob Taft announced the appointment of William Mabe as the administrator/chief executive officer of the Ohio Bureau of Workers’ Compensation (BWC).

Mabe previously worked at Nationwide, most recently serving as the senior vice president of Nationwide Provident Operations before retiring in 2003. He currently serves as an adjunct professor at Franklin University and works as a management consultant for R.E. Nolan Management Consulting. Mabe received his law degree from Capital University and holds a bachelor’s degree from The Ohio State University.

Mabe replaces Tina Kielmeyer, who will remain with BWC as chief operating officer.

WISCONSIN

Lawmakers Pass Med-Mal Cap Bill:

The Wisconsin legislature passed Assembly Bill 766, which restores caps on non-economic damages in medical malpractice cases. However, supporters are concerned that Gov. Jim Doyle will veto the measure.

A.B. 766 was introduced after Assembly Speaker Gard (R) appointed a medical malpractice legislative task force to address a July ruling by the Wisconsin Supreme Court that invalidated the state’s caps on non-economic damages in medical malpractice cases. The Court held the caps were unconstitutional on the grounds that they violated the equal protection guarantees of the state’s constitution. The ruling was criticized by insurers, the medical community and legislative leaders.

The bill establishes a two-tiered cap on non-economic damages of $450,000 for adults and $550,000 for persons under 18. The previous $350,000 cap on non-economic damages,established in 1995, was indexed for inflation and stood at $445,775 at the time of the ruling in the case of Matthew Ferdon v. Wisconsin Patients Compensation Fund.

“The new cap was designed to address the Court’s concerns about equal protection for minors and to withstand future constitutional scrutiny. We only hope that, at a time when nearby states like Illinois and Missouri are instituting new laws addressing caps on non-economic damages, Gov. Doyle does the right thing for Wisconsin by signing AB 766,” said John Birkinbine, assistant vice president, Midwest Region of the American Insurers Association.

However, supporters are concerned that Gov. Doyle will veto the bill. Although the Assembly passed it by a veto-proof margin, Senate passage was only 19-14, strictly along party lines, after an amendment to raise the cap to $1 million was shot down.