TOP 2002 LEGISLATIVE AGENDAS

Challenges to the use of credit scoring in underwriting and rating, and consumer privacy matters related to the Gramm/Leach/Bliley Act (GLB) will top the insurance issues considered by state legislatures in 2002, according to a survey of National Association of Independent Insurers’ (NAII) lobbyists. However, NAII noted that the ongoing debate over a federal terrorism insurance backstop bill, state regulatory response to terrorism exclusions and a rapidly hardening insurance market could alter the legislative debate in some states. NAII lobbyists predict that credit scoring will be the most defensive issue for the association in more than two dozen states. Privacy was named as number two in the hit parade of expected legislative proposals. According to Robert Zeman, NAII vice president and assistant general counsel, many states rushed to pass privacy statutes to comply with GLB. Zeman said depending on how states handle these filings and how the business community reacts to the unavailability of terrorism coverage, the tone of the state legislative sessions and the issues debated by state lawmakers could change. He added, moreover, the hardening market conditions and potential market disruptions in medical malpractice and other specific lines may impact the nature of legislative agendas. Another issue that NAII will monitor is the use of competitive market parts in auto repair. Workers’ comp also fell into the top four-issue category but specific concerns vary from state to state. According to Zeman, California, Florida and other major states will likely address benefit and reform issues in their 2002 legislative sessions.