Comments Off on IIK Leads in Passage of HB 313 – Fixes Two Issues
IIK Leads in Passage of HB 313 – Fixes Two Issues
IIK worked with Rep. Joe Fischer to pass HB 313 in order to modernize two aspects of KY insurance law:
Auto Alarm Systems:
Kentucky statutes specify discounts that insurers must give for auto alarm systems. Those statutes were written in 1986 and specify outdated technology. In addition, the discounts required do not match the risk reduction associated with the use of alarm systems. HB 313 fixes this by requiring insurers to give appropriate discounts based on actuarial data on the system installed. This will allow auto alarm system discounts to work the same as virtually all other insurance discounts offered.
Insurers in KY are required by law to report suspected insurance fraud to DOI’s Division of Insurance Fraud Investigation, and the law provides limited immunity for making those reports. In addition, most insurers share information about suspicious claims with NICB, a national, not-for-profit organization that works with member companies and law enforcement to investigate suspected fraud.
While insurers have limited civil immunity for their reporting to DOI’s Division of Insurance Fraud Investigation, NICB does not. HB 313 closes the immunity gap so that insurers can share information with NICB and NICB can share it with DOI with the same limited immunity provided to insurers.
The bill passed unanimously in each the House and the Senate, and it was signed into law by the Governor. The Auto Alarm System provisions will be effective for policies issued on or after January 1, 2021 and the NICB Immunity takes effect on July 15, 2020,