Agent News

Federal

The insurance industry has started initial lobbying efforts in Washington to extend the terrorism risk insurance program, which expires at the end of 2020. The program was created after the attacks on Sept. 11, 2001, when carriers suffered excessive losses and eventually highly populated commercial areas across the Nation were unable to secure coverage. In an effort to maintain market stability, AF Group will work with Congressional leaders over the next 18 months in support of a timely renewal.

Florida

The Florida Legislature is considering two bills, SB 1636 and HB 1399, that address workers’ compensation. SB 1636, proposes reasonable fixes for the Florida Supreme Court’s adverse decisions a few years ago that invalidated both the statutory contingent attorney fee provision (Castellanos) and the 104-week limitation on temporary total disability (Westphal).  The Senate proposal seems the preferable approach as an overall reform vehicle, although H.B. 1399 does have one favorable provision that is lacking in S.B. 1636, as it would tie outpatient hospital reimbursement to Medicare, in lieu of the current charge-based approach. We anticipate some form of merged compromise to occur between the Senate and House proposals.

Maryland

SB 854 would require carriers to provide injured workers with medical cannabis, which would be characterized as “medicine”; and require compensability even where an accident is solely caused by medical cannabis, if it was administered or taken in accordance with a physician’s written certification and instructions.  In general, the industry opposes mandatory marijuana reimbursement under workers’ compensation system, based on both the federal illegality of cannabis and the lack of sufficient objective medical evidence of its efficacy in treating workplace injuries.  We are aware that some insurers want the discretion to recommend or treat with marijuana when it appears in a case to be a suitable alternative to opioids. The bill now awaits consideration by the House Economic Matters Committee.

California

The industry is closely monitoring Senate Bill 567, which establishes various presumptions for hospital employees.  According to the proposal infectious diseases, cancer, musculoskeletal injuries, post-traumatic stress disorder, and respiratory diseases; would be presumed work related injuries for hospital employees. The future of this initiative is unclear at this time.

Illinois

As previously communicated, enacted Senate Bill 1737, requires carriers to send employer and agency premium increase notifications on all Illinois policies issued or renewed on or after January 1, 2019 that have premium in excess of 5% of the rate recommendation filed with the Department. The industry had previously been misadvised this provision applied to all Jan. 1, 2020 new business. AF Group has invested in system changes and created new processes/procedures in an effort to ensure compliance and timely communication with all stakeholders when notification are required.

South Carolina

The South Carolina Workers’ Compensation Commission approved the 2019 Medical Services Provider Manual (MSPM) with changes taking effect April 1, 2019.  The summary of the changes can be found at the following link: https://wcc.sc.gov/sites/default/files/Documents/Main/Insurance_and_Medical_Services/Medical_Services_Division/Medical_Fee_Schedules/2019%20MSPM%20%20Changes%203.21.pdf.