State Legislative/Regulatory News

Exclusive Reporting for the Week of May 29, 2014

May 29, 2014 — This is your weekly update of state legislative/regulatory developments affecting companies involved in the self-insurance/alternative risk transfer marketplace. Should you have any questions on information provided in these reports and/or would like to alert SIIA to new state legislative/regulatory activity (health care, workers’ compensation and/or captive insurance matters) we may have missed, please contact Adam Brackemyre, Director of State Government Relations directly at 202/463-8161, or via e-mail at

New York – Stop Loss Legislation
The Assembly Insurance chair is deciding whether he will sponsor the Assembly’s stop-loss prohibition fix legislation or delegate lead sponsorship to a colleague.

In New York, the committee chairs are very powerful. If one seeks to introduce legislation, the chair must be supportive and given the first right of refusal to sponsor the legislation. Before moving to other members of the Insurance Committee, like SIIA’s retained counsel is prepared to do, the chair must decide whether he will sponsor the legislation. This decision is expected any day.

As soon as legislation is introduced, SIIA will initiate the next phase of its aggressive grassroots strategy to build support for the this legislation, a companion bill to legislation expected to be passed out of the state Senate next week. The legislature will adjourn for the summer in late June, so we have a window of opportunity that will be closing soon.

Member companies already actively engaged in the grassroots lobbying effort include Berkley A&H, Lawley Benefits Group, Sun Life, HCC Life Insurance Company, East Coast Underwriters, Standard Insurance, Meritain Health, Relph Benefit Advisors and Gerber Life Insurance.

Please contact Adam Brackemyre right away if you would like to participate as part of this grassroots strike team. Thank you again to everyone who is already helping.

Washington, DC – Stop-Loss Legislation
As reported last week, legislation has been introduced in the District of Columbia to restrict the availability of stop-loss insurance based on attachment points, among other regulatory provisions.

At this point, there is no indication that the DC Council will deem this legislation to be an “emergency” like the assessment legislation passed earlier this summer. Therefore, it is likely that the legislation will follow regular order, which for DC means:
• First, the bill will posted on the legislative calendar and heard at a public hearing. SIIA will testify in opposition to the stop-loss provisions.
• At a second hearing, the committee of jurisdiction will discuss the bill. No testimony is taken from the public at this hearing.
• Finally, the full DC Council must vote to approve the final legislation two times.
The DC Council adjourns for the summer between mid-July and mid-September. Currently, the Council is debating budget legislation. SIIA friends close to DC Council are trying to confirm a timeline. One source said that there could be a public hearing before the summer break, but he did not believe that passage before July was likely.

In preparation of the anticipated hearing, SIIA is working with allied stakeholders to develop a lobbying strategy and will provide additional reporting in the coming weeks.

SIIA’s 34th Annual Conference
SIIA’s National Conference and Expo is scheduled for October 5-7, 2014 in Phoenix, AZ, which will feature a dedicated Legislative/Regulatory/Legal update session. Conference details, including registration forms, can be accessed on-line at, or by calling 800/851-7789.