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PIACT 2018 legislative wrap-up
Resource kit 06006
By Bradford J. Lachut, Esq.
The 2018 short session came to an end on May 9, 2018, after three busy months for the legislators. PIACT also had a busy session tracking many pieces of priority legislation and offering testimony on several of them. In the end, PIACT-endorsed legislation did not make it through this session, but we are determined to move forward and introduce them again next session.
Granting continuing-education credits for active/participating association membership
One of PIACT’s biggest priorities was legislation that directed the Connecticut Insurance Department to grant continuing-education credits to active, participating members of an insurance trade association. PIACT President Ken Distel, testified in support of S.B.203, An Act Concerning Continuing Education Credits in early March. The proposal sought to require the CTID to grant at least six continuing-education credits to active members of an insurance trade association that participate in at least one educational meeting, presentation or conference sponsored by the association during the two-year license renewal period. Distel spoke to the committee about his experience with PIA and told the committee that, if it was not for his participation in the association, he would not be aware of the bills presented in front of the committee or their implications on agents and brokers.
The bill received a joint favorable report in late March, but was referred to the Appropriations Committee following the report from the Office of Legislative Research and Office of Fiscal Analysis. The report noted that it would cost over $100,000 to implement the requirement in the CTID. The Appropriations Committee then gave the bill a favorable report via voice vote on April 24, 2018. However, with other bills taking priority in the Senate and the session ending the next week, the proposal did not make it past the Senate calendar.
PIACT remains committed to this piece of legislation and will work to reintroduce it in January when the 2019 session begins.
Accurate quoting of automobile policies
Another piece of priority legislation, S.B.202, An Act Concerning Motor Vehicle Insurance Policy Quotes, was introduced on Feb. 22, 2018, and sought to require any carriers and producers representing them who utilize insureds' driving history records as an underwriting or rating factor for personal automobile policies to run these reports prior to quoting. PIACT-YIP past President and PIACT Director Nicholas Ruickoldt, CPIA, testified in support of the majority of the proposal, speaking out in favor of the spirit of the legislation, but requested a modification that would change the proposal to require the reports be run prior to binding rather than quoting the policy.
The bill received strong opposition from carriers and carrier associations. This opposition, along with PIACT’s request for a modification, led to the bill failing in the Insurance and Real Estate Committee. PIACT remains committed to the spirit of this legislation and will work to reintroduce it in January with the modification of requiring the driver’s history to be run prior to binding.
Prohibition on employers inquiring about prospective employee’s salary history
Gov. Dannel P. Malloy signed Public Act 18-8 on May 2, 2018. This legislation prohibits an employer from inquiring about a prospective employee’s salary history unless the applicant volunteers that information. However, an employer may still inquire about other elements of a prospective employee's compensation structure, as long as such employer does not inquire about the value of the elements of such compensation structure.
The Act goes into effect Jan. 1, 2019.
Electronic proof of automobile insurance
Gov. Dannel P. Malloy signed an insurance bill into law on May 22, 2018, that relates to electronic proof-of-insurance cards. Public Act 18-108 permits an individual to present an automobile insurance identification card to the commissioner or a law enforcement officer by electronic means, including by an in-person display of an electronic image on a cellular mobile telephone or other electronic device. It also prohibits the police or commissioner from considering the display of an electronic identification card as consent to view any other content on the phone or mobile device other than the insurance identification card.
The Act goes into effect on Oct. 1, 2018.
Paid family leave
S.B.1, An Act Concerning Earned Family and Medical Leave, failed to receive a favorable report from the Labor and Public Employees Committee this year in a 7-6 vote. However, H.B. 5387, An Act Concerning Paid Family Medical Leave, did receive a joint favorable report, but failed to make it past the House calendar. This is the third consecutive year that paid family leave has been proposed in Connecticut and the third time it has failed. It’s believed that the high fiscal note is one of the largest deterrents to enacting paid family leave at this time. PIACT is confident that this issue will be seen again next session.
Crumbling foundations
The legislature also took up the issue of crumbling foundations for the third consecutive session. This year, H.B.5209, An Act Concerning Long-Term Care Insurance Premium Rate Increases, was passed by both the House and the Senate and is currently awaiting Gov. Malloy’s signature. While the bill title may fool you, the body of the legislation imposes a $12 surcharge on all homeowners insurance personal risk insurance policies on owned dwellings with four or fewer units, or on condominiums that are delivered, issued for delivery, renewed, amended or endorsed on or after Jan. 1, 2019.
The surcharge is not considered premium for any purpose and will be used to fund the Healthy Homes Fund. The Fund will be a separate, nonlapsing account within the General Fund, which the Department of Housing may use for several purposes. One of the purposes is to provide $1 million to the Department of Economic and Community Development for grants-in-aid to homeowners with homes located in the Westville section of New Haven and Woodbridge for structurally damaged homes or homes with damage from water infiltration or structural damage due to crumbling foundations or collapse.
The funds are also to be used to fund a program to reduce health and safety hazards in residential dwellings in Connecticut, including, but not limited to, lead, radon and other contaminants or conditions, through removal, remediation, abatement and other appropriate methods. 5/18
