After the General Assembly’s 2000 legislative session came to a close, Gerald L. Zimmerman, the National Association of Independent Insurers’ (NAII) New England counsel, was left bitterly disappointed that a lead paint bill failed to clear the House of Representatives.
Zimmerman acknowledged that the proposed bill was not perfect, but it was a start, he said.
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“The whole purpose of lead paint legislation is to help sick children get better, and prevent healthy children from being exposed to lead poisoning,” Zimmerman said in an interview with the Providence Business News after the 2000 session. “Perhaps next year the plaintiff lawyers and the real estate groups will put aside their own interests for the larger good.”
Zimmerman could be in line for further frustration in 2001 with regard to lead paint measures.
With the new legislative session set to open in a month, there remains uncertainty as to whether proponents of lead paint liability legislation will be able to build upon whatever momentum they gained last year.
Stephen D. Zubiago, a lawyer with Nixon Peabody in Providence, serves as local counsel for the NAII. Zubiago described the failure of the lead paint bill in the 2000 session “a travesty.”
Something, he said, needs to be done. But Zubiago is also unsure that something will get done in 2001.
“It is really unclear as to what is going to happen,” he said. “The underlying issues that gave rise to the proposed legislation still exist. There is still no incentive for property owners to clean up the lead.”
The most strident opponents of the lead paint legislation have been the trial bar and the real estate community.
The insurance lobby in general would seem to benefit by the ascension of Sen. William V. Irons, as Senate Majority Leader. The East Providence Democrat succeeds Sen. Paul S. Kelly, of North Smithfield. Irons is a long-time life insurance agent who clearly understands industry issues.
“He understands business and economic development needs,” Zubiago said. “And because he has an insurance background, he understand insurance issues. He’s also got a reputation for listening to both sides of a dispute and being fair. That’s all you can ask.”
Other insurance issues likely to surface are producer licensing standards and a push by the Rhode Island auto body shops to institute higher labor rates.
Overall, the legislative climate in 2001 throughout New England could be a volatile one for the independent insurer’s lobby.
“The November elections have shaken things up a bit in several of the legislatures, which could make it challenging for insurers to advocate their interests,” said Zimmerman.
Zimmerman outlines other issues indigenous to each New England state. They include:
Connecticut: Seen by the NAII as a state where many members of the trial bar sit in the legislature. NAII’s local counsel there, Jay Jackson, recommends that insurers seek equal access to evidence, improving the exchange of auto accident information, and allowing attorneys to use lack of seat belt use in accidents as trial evidence. The state insurance department is considering adopting producer-licensing standards, a move that may be supported by the NAII if there is an exemption for customer service representatives. Automobile issues such as territorial rating and a study on credit in underwriting are also expected to be among the subjects debated.
Maine: As a term limit state, Maine saw its legislature change drastically in the November election, according to Bruce Gerrity, the state’s local counsel. Insurance issues, he said, could include after-market parts, workers’ compensation reform rollbacks and the reintroduction of an insurer self-audit bill.
Massachusetts: Insurers are troubled by the fact that the Bay State’s insurance commissioner finalizes rate approvals in December, which means insurers must go through the expense of rebilling policyholders to reflect changes. Other issues include commercial lines deregulation, a competitive rating bill for workers’ compensation rates and a push to eliminate the state body shop licensing board. In addition, rate making remains a hot topic in a state that saw three insurers go insolvent last year.
New Hampshire: This state is expected to spend the first two months of its impending legislative session trying to pass a state income tax in an effort to bail out its schools. As for insurance issues, workers’ compensation dominates the agenda. In addition, the NAII may introduce another version of an insurer self-audit bill, which failed to gain approval in the 2000 session. There is also interest in looking at an after- market auto parts bill, possibly one designed by the Certified Auto Parts Association (CAPA), to counter body shop attempts at outlawing after market parts. CAPA’s model bill would require party certification of all non-OEM, original equipment manufacturer parts, ensure that there is no penalty to owners of leased vehicles for using certified after market parts, and require car manufacturers to disclose specifications for cosmetic crash parts.
Vermont: The insurer self-audit concept has apparently caught the attention of Insurance Commissioner Elizabeth Costle, according to Ed Miller, the NAII’s local counsel. Costle wants full access to audit information. Other possible issues, according to Miller, include commercial lines deregulation, adding a night driving restriction to last year’s graduate drivers license law, and a producer licensing reciprocity bill.
Zimmerman added that privacy standards and the potential rollback of workers’ compensation reforms are matters of concern throughout New England.
“Privacy will remain in the forefront, primarily because of the pressure to bring the states in line with the federal Gramm-Lech-Bliley requirements,” he said.
