New Insurance Laws in Indiana

Following another busy legislative session, the Indiana General Assembly adjourned sine die on April 27. Numerous insurance related bills were filed this year. Here are some of the more notable bills that became law:

  • HEA 1190 – Uninsured and Underinsured Motorist Coverage – provides that UM/UIM motorist coverage is not required to be made available in conjunction with a personal or excess liability policy. The bill also requires insurers to notify their customers should coverage be reduced, changed or removed.
  • HEA 1320 – Worker’s Compensation – this act creates law governing the reimbursement of costs to medical service facilities (i.e., hospital, hospital based health facility or medical center) relative to worker’s compensation claims. In particular, the act caps reimbursement at 200% of the Medicare reimbursement rate unless otherwise negotiated between the hospital and the employer, employer’s insurance carrier, billing review service or direct provider network. The act also does the following: specifies reimbursement amounts for repackaged drugs; increases the benefit amounts to injured workers; and provides added confidentiality provisions relative to information filed with the Indiana Worker’s Compensation Bureau.
  • HEA 1321 – Insurance Matters – a comprehensive insurance bill which contains in part the following: updates to the standard valuation law (incorporating the NAIC’s recently adopted principles based reserving method) and Indiana Life and Health Guaranty Association law (incorporating 2009 NAIC amendments, including an increase in annuity coverage from $100,000 to $250,000); implementation of a limited lines travel producer’s license; revisions to risk based capital requirements; requirements for coverage of newly acquired motor vehicles; revisions to the insurance code regarding confidentiality and exam working papers; and clarification regarding imposition of penalties/fines in examination orders as well as clarification to the portable electronics insurance act.
  • HEA 1322 – Certificates of Insurance – specifies requirements related to a certificate of insurance issued in connection with property, operations or risks located in Indiana. The act limits the application of the certificate to liability insurance only.
  • SEA 431 – Property & Casualty Guaranty Association – the act provides updates to the Indiana Property & Casualty Insurance Guaranty Association, including changes to: the composition of the board of directors, coverage under the association and other insurance coverage (worker’s comp claims fully covered), the treatment of a high net worth insured, and the venue for actions involving the association (Marion County, Indiana).
  • SEA 432 – Self-Storage Insurance – provides a regulatory framework for the sale of self-storage insurance through a limited lines producers license.
  • SEA 620 – Proof of Financial Responsibility – this law allows for proof of insurance to be provided by electronic means (such as display of an image). Additionally, it provides that the BMV may enter into a contract with a third party to enforce the financial responsibility laws.
  • HEA 1328 – ACA Language Passes – Language to implement the Affordable Care Act with respect to exchanges, navigators and the state high risk pool found a home late in the session in HEA 1328 and passed the General Assembly. Specifically, this Indiana Department of Insurance-supported measure, clarifies the regulatory authority of the Insurance Commissioner to regulate plans offered in a federal exchange, establishes a certification process for navigators and assisters, and prepares the state’s high risk pool for transition to exchange coverage in 2014. In conference committee, language was also added directing the Family and Social Services Administration to report to the Health Finance Commission information regarding an expansion of managed care in Indiana.

Click on the image below for the entire Bose Public Affairs Group End-of-Session Report.

Pages from 2013 End of Session Report

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