Here are several new Insurance Laws that take effect January 1st
The new legislation would continue to bar the use of credit information in decisions to deny, cancel or non-renew auto, homeowners, casualty and fire and inland marine coverage. However, insurers would be permitted to use credit information and insurance scores to determine options and availability for premium installment payments. Michigan currently only allows insurers to use credit information in offering “good credit” discounts, barring its use in underwriting decisions and in charging any sort of bad credit surcharge to a policy.
HB 523(Chapter 235)/ SB 369(Chapter 346) will become effective on Jan. 1, 2013. The bill adds a section to the fire insurance policies chapter, requiring insurers issuing new or renewal policies of fire insurance, or fire insurance in combination with other insurance coverage, which exclude coverage for damage caused by earthquake, to provide a written notice that explicitly states that “earthquake coverage is excluded unless purchased by endorsement.” This notice must state that information regarding such coverage is available from the insurer or the agent if earthquake coverage is otherwise available from the insurer.
The NRS 691A.020 is scheduled to go into effect on Jan. 1, 2013. It will require each insurer which provides a policy for a personal line of property insurance covering a manufactured home or mobile home in Nevada that was manufactured within the immediately preceding 15 years shall offer to an insured, on a form approved by the Commissioner and in addition to any other insurance, the option of purchasing insurance to pay the replacement value of the manufactured home or mobile home in the event of a total loss of the manufactured home or mobile home.
Act 32 (H.B. No. 994, H.D. 1), relating to motor vehicle insurance, goes into effect in January 2013. The Act excludes benefits paid or incurred under the workers’ compensation law from the covered loss deductible, according to the state’s Department of Commerce and Consumer Affairs.
HB 119 Motor Vehicle Personal Injury Protection (PIP) Insurance The law also applies two coverage limits for PIP medical benefits, based on the severity of the individuals medical condition. Policyholders could receive up to $10,000 in benefits for emergency medical care and $2,500 for other less serious injuries. Follow up medical care must also be consistent with the underlying medical diagnosis rendered when the initial services and care were received.
In addition to the $10,000 in medical and disability benefits, $5,000 in death benefits is offered. The death benefit was previously the lesser of the unused benefits, up to a limit of $5,000.
HB 2012-H7484A/SB 2012-S2597A will take effect Jan. 2013 and will be applicable to policies issued or renewed on or after Jan. 1, 2013. The legislation limits a hurricane deductible to only once per hurricane season, so that a homeowner cannot be hit with a second deductible in the unlikely event that a second hurricane hits the state during a hurricane season.
It also provides a hurricane mediation process as a non-adversarial and non-binding alternative dispute resolution process for claims arising from a hurricane in which the property owner and the insurance company will work to resolve potential claims.