Several Insurance Bills Pass in 2020 Legislative Session
A number of bills with an insurance impact passed during the 2020 legislative session. The key bills were as follows:
- HB 417 (Rep. Bart Rowland) – Credit for Reinsurance Model Act Amendments: In 2019, the National Association of Insurance Commissioners gave its approval to amendments to the Credit for Reinsurance Model Law and Regulation. These standards are part of the uniform accreditation standard applicable to all NAIC-accredited jurisdictions, including the KY Department of Insurance. HB 417 amended KY’s statutes to conform with the amendment to the Model Act and assures that KY’s Department of Insurance will meet that accreditation standard.
- HB 154 (Rep. Ed Massey) – Kentucky Uniform Powers of Appointment Act: This bill adopted a model act related to the powers of attorney. IIK worked with the sponsor to add a section to the bill to fix an issue with the power of attorney form required when auto insurers seek a salvage title for salvage vehicles.
- HB 378 (Rep. Thomas) – County Clerk Liability for Salvage Titles: This bill gave County Clerks immunity from liability on the transfer of salvage title vehicles when they rely on information provided by the owner of the vehicle. IIK supported a provision that allows e-signature transfer of salvage titles from the owner to an insurance company.
These bills all take effect on July 15, 2020.