The act repeals provisions which require individual risk premium modification rating plans used by workers' compensation insurers to be actuarially justified, not result in premiums which are excessive, inadequate, or unfairly justified, and to be applied on a statewide basis. The act also removes the prohibition on the removal or reduction of premium credits unless there is a change in the insurer, the insurer amends or withdraws the rating plan, or there is a change in the insured employer's operations.

When premium modifications result due to a schedule rating plan with an underwriter determining individual risk characteristics, then up to an additional ten percent credit may be given for a reduction in the insurer's expenses, rather than "an additional ten percent" reduction.

These provisions are identical to provisions in HCS/HB 1955 (2016) and SCS/HB 2429 (2016).

Insurance companies may file one affidavit, in cases of adopted market conduct reports from the Department of Insurance, indicating acceptance of such reports rather than requiring all directors of a company to file an affidavit. This affidavit will be executed by its general counsel or chief legal officer.

This provision is identical to HB 2611 (2016).

Currently, an insurer must meet certain notification requirements before refusing to renew a homeowner's insurance or an automobile insurance policy. The act provides that an insurer does not need to meet such notice requirements when: 1) the insurer assigns or transfers the policy to an affiliate or subsidiary within the same insurance holding company, 2) the assignment or transfer is effective upon the expiration of the existing policy, and 3) prior to providing coverage for a subsequent policy term the insurer accepting the assignment or transfer provides notice of the assignment or transfer to the insured.

If after the assignment or transfer of a policy the coverage will not be substantially equivalent to the coverage in the policy prior to the assignment or transfer, then the insurer must notify the policyholder that some coverage provisions will change.

These provisions are similar to SCS/SB 974 (2016).

This act allows property and casualty insurers and reinsurers to write limited amounts of life insurance that are attached as riders to policies outside of the United States, provided that the aggregate premium assumed annually does not exceed three percent of the capital and surplus of the company as of December 31st of the preceding year.

This provision is identical to HB 1668 (2016).

This act creates a regulatory system for self-service storage insurance and the selling of such insurance. This act allows a limited lines self-service storage producer to offer and disseminate self-service storage insurance. Producers shall meet certain licensing and training criteria. Producers shall also maintain a register of individuals that offer the self-service storage insurance on the producers' behalf and make the information contained in the register available to the Department of Insurance, Financial Institutions, and Professional Registration upon request. The producers shall also require each employee and authorized representative of the producer whose duties include offering and disseminating self-service storage insurance to receive training that meets minimum standards outlined in the act, which shall be reviewed and approved by the Director of the Department.

Producers offering and disseminating self-service storage insurance shall provide brochures or other print materials to prospective purchasers that meet minimum standards as outlined in the act. Self-service storage insurance producer's employees and authorized representatives shall not engage in certain activities including evaluating the technical terms of the policies or holding themselves out as insurance producers. Limited lines self-service storage insurance producers, operators, employees and authorized representatives may offer and disseminate self-service storage insurance policies in an amount not to exceed $5,000 per customer per unit.

This provision regarding self-service storage insurance is identical to SCS/SB 862 (2016) and is similar to HB 2167 (2016), SB 780 (2016), SCS/SB 503 (2015), and HB 1225 (2014).

JESSI BAKER