05/14/1999 02:23 PM Senate L&C

                                                                                                                                
CHAIRMAN MACKIE announced HB 158 to be up for consideration.                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG, sponsor, said this bill is important to                                                                
pass this year, because it meets the biennial licensing cycle.  It                                                              
authorizes the Division of Insurance to make inquiries of the                                                                   
health insurers as to the numbers of individual or group policies                                                               
that they write in this State.  Representative Rokeberg said as a                                                               
member of the Labor and Commerce Committee for five years, he has                                                               
wondered who is really covered by insurance mandates, because they                                                              
sound real good, but have a negative impact on the affordability of                                                             
insurance to people.  Most people are covered by ARITHA or self                                                                 
insured plans which the insurance mandate bills don't reach out to.                                                             
There may be under 100,000 people who are actually affected by any                                                              
insurance mandate bill.  This provision allows the Division to get                                                              
that information.                                                                                                               
                                                                                                                                
The second thing this bill does is because of a situation with an                                                               
83 year old neighbor who forgot to pay his premium and got in an                                                                
automobile accident.  It requires the insurance industry to give                                                                
notice to everyone in the state that a person over 70 years of age                                                              
may request and have designated a third party to which their                                                                    
insurance premiums and notifications will be mailed to.  Industry                                                               
has also indicated to Representative Rokeberg that they are willing                                                             
to do this in their general publications on all insurance policies                                                              
sent within the state.                                                                                                          
                                                                                                                                
He noted that this only covers personal insurance like auto and                                                                 
home owners.  It's not meant to go into other areas.                                                                            
                                                                                                                                
Number 136                                                                                                                      
                                                                                                                                
SENATOR KELLY asked why the age wasn't set at 65.                                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG said that statistics show that the onset of                                                             
ADRD type dementia disease start when you get into the older ages.                                                              
                                                                                                                                
SENATOR DONLEY asked if section 2, repealing existing notice                                                                    
requirements, changes any the notice requirements for anyone under                                                              
70 years of age.                                                                                                                
                                                                                                                                
MR. JOHN FERENCE, Division of Insurance, answered that it didn't                                                                
change those requirements.  It adds the opportunity for an extra                                                                
notice for someone over 70 years of age.                                                                                        
                                                                                                                                
Number 176                                                                                                                      
                                                                                                                                
MR. JOHN GEORGE, National Association of Independent Insurers, said                                                             
that this version is better than the original bill which industry                                                               
did not support.                                                                                                                
                                                                                                                                
SENATOR DONLEY asked if section 2 overturns any court cases or                                                                  
change any current rules as far as providing notice to the elderly.                                                             
                                                                                                                                
MR. FERENCE answered no.                                                                                                        
                                                                                                                                
SENATOR LEMAN moved to report HB 158 from committee with individual                                                             
recommendations.  There were no objections and it was so ordered.