LICENSURE REFORM (SB 280/HB 333 -- Sen. Steve French/ Rep. Warren Beck)
Historically, the renewal period for insurance producers, service representatives and adjusters has been annual. This bill will change the renewal period to biennial. The legislation also changes the continuing education requirement to 24 hours over two years instead of 12 hours over one year. The legislation also mandates that licensees take three hours of courses in producer ethics or business practices.
SB 280 was approved by the Senate Banking & Insurance Committee and received its second reading on February 24.
HB 333 passed the House on March 1 and is now pending in the Senate Banking & Insurance Committee.
INSURANCE REGULATION INTERSTATE COMPACT (HB 632 - Rep. James Buskey)
To ensure the future of state-based insurance regulation, the National Association of Insurance Commissioners has proposed an Interstate Compact, which has been adopted by nine states to streamline the approval of life, disability, long-term care and annuity products in the Compact member states. The Compact will be fully operational once 26 states or states representing 40 percent of the market have adopted the legislation. The legislation benefits consumers and companies by allowing newer, more competitive products into the market on a timely basis. Alabama has been a leader in the development of this compact. Commissioner Bell serves as chair of the NAIC committee that is developing the standards for the products. If this legislation is not enacted, then those who wish to strip regulation of insurance from states to the federal government will gain momentum. This bill has passed the House twice.
Current Status: HB 632 pending in House Banking & Insurance Committee since 3/15.
HIPAA AMENDMENTS (SB 314 / HB 202 -- Sen. Larry Means / Rep. Charles Newton)
Non-controversial, technical amendments to bring Alabama's insurance laws into compliance with federal HIPAA regulations. This bill has passed the House several times and has bogged down in the Senate.
SB 314: Approved by Senate Banking & Insurance Committee 3/16
HB 202: Passed the House on February 22 and is now pending in the Senate Banking & Insurance Committee.
Other Bills affecting ALDOI
- Insurance Fraud (SB 259 / HB 370 -- Sen. Quinton Ross/Rep. Mike Hill) -- Agents associations taking lead on this bill, negotiating with companies and Alabama Trial Lawyers Association.
SB 259 is pending in Senate Judiciary Committee. (ALDOI supports in current form.)
HB 370 was approved by the House Banking & Insurance Committee and received its second reading on February 24. (ALDOI does not support some of the amendments added in Committee.)
- Pre-Need Amendments (SB 257/HB 381 -- Sen. Rodger Smitherman/ Rep. Terry Spicer) -- Alabama Funeral Directors Association taking lead on amending Pre-Need Act.
SB 257 is pending in the Senate Judiciary Committee. (ALDOI supports in current form.)
HB 381 was approved by the House State Government Committee and received its second reading on 3/3. (ALDOI supports in current form.)