NCOIL Spring Meeting Recap
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The National Council of Insurance Legislators’ (NCOIL) 2024 Spring Meeting took place April 11-14, 2024, in Nashville, Tennessee. More than 50 legislators were joined by 8 state insurance commissioners and many representatives from the insurance industry and their customers.
The opening session featured Zurich’s Mike Saporito, Vice President, Life, Accident, & Health, in a panel discussion on workers’ compensation alternatives for independent contractors. The discussion, which also included Brad Nail speaking as a representative of Uber, focused on insurance options for drivers in the gig economy. Mike described Zurich’s Occupational Accident Product, which allows independent truckers to obtain coverage for work-related injuries without the expense of purchasing workers’ compensation. He also described how the product could be translated to drivers for Delivery Network Companies, who are frequently categorized as independent contractors, and how the platforms could assist in ensuring drivers can obtain cost-effective coverage.
The meeting also saw the second introduction of a Third-Party Litigation Financing (TPLF) model law by Indiana Representative Matt Lehman, who you may recall participated in a Government & Regulatory Relations Town Hall last fall. The first attempt at a TPLF model occurred in the early 2010s but was defeated by a single vote. Rep. Lehman observed that the legal landscape has changed since then, citing a proliferation of ‘nuclear’ verdicts which are ultimately paid for by policyholders, the lack of transparency in the funding of mass tort lawsuits, questions about whether the claimants are truly in control of their litigation, and the use of courtrooms as a ‘trading floor’ by hedge funds and foreign state investors. It’s also important to note that social inflation not only escalates the costs of claims which could influence insurance premiums, but also that the ultimate financial burden is shouldered by policyholders and end consumers as a result of this.
Panelists were largely in agreement over the need for a model, with only the representatives for the trial bar objecting to mandatory disclosure in all cases. Several panelists also suggested bifurcating the model by separating the provisions applicable to consumer litigation from those applicable to commercial litigation.
Other topics that were addressed included:
- Model laws on catalytic converter theft prevention, Strengthen Homes Program Model, a draft of an Online Marketplace Guarantees Model (submitted by Airbnb), and an Earned Wage Access Model, as well as proposals for readoption of several life insurance-related models.
- A conversation with state insurance commissioners recapping the events at the recent National Association of Insurance Commissioners (NAIC) Spring Meeting, and ongoing activities such as a framework for regulating insurer investments, the status of the implementation of the NAIC model bulletin on the use of artificial intelligence, Auto and Home insurance affordability, and efforts to support financial literacy courses in high schools.
- Discussions on addressing the affordability/availability of personal lines auto and homeowners’ coverage, and the cost and coverage of weight loss drugs.
The next meeting of NCOIL will be held in July in Costa Mesa, California.
By John Zillmer
Assistant Vice President, Regulatory Affairs
NCOIL Spring Meeting Recap
Share this
The National Council of Insurance Legislators’ (NCOIL) 2024 Spring Meeting took place April 11-14, 2024, in Nashville, Tennessee. More than 50 legislators were joined by 8 state insurance commissioners and many representatives from the insurance industry and their customers.
The opening session featured Zurich’s Mike Saporito, Vice President, Life, Accident, & Health, in a panel discussion on workers’ compensation alternatives for independent contractors. The discussion, which also included Brad Nail speaking as a representative of Uber, focused on insurance options for drivers in the gig economy. Mike described Zurich’s Occupational Accident Product, which allows independent truckers to obtain coverage for work-related injuries without the expense of purchasing workers’ compensation. He also described how the product could be translated to drivers for Delivery Network Companies, who are frequently categorized as independent contractors, and how the platforms could assist in ensuring drivers can obtain cost-effective coverage.
The meeting also saw the second introduction of a Third-Party Litigation Financing (TPLF) model law by Indiana Representative Matt Lehman, who you may recall participated in a Government & Regulatory Relations Town Hall last fall. The first attempt at a TPLF model occurred in the early 2010s but was defeated by a single vote. Rep. Lehman observed that the legal landscape has changed since then, citing a proliferation of ‘nuclear’ verdicts which are ultimately paid for by policyholders, the lack of transparency in the funding of mass tort lawsuits, questions about whether the claimants are truly in control of their litigation, and the use of courtrooms as a ‘trading floor’ by hedge funds and foreign state investors. It’s also important to note that social inflation not only escalates the costs of claims which could influence insurance premiums, but also that the ultimate financial burden is shouldered by policyholders and end consumers as a result of this.
Panelists were largely in agreement over the need for a model, with only the representatives for the trial bar objecting to mandatory disclosure in all cases. Several panelists also suggested bifurcating the model by separating the provisions applicable to consumer litigation from those applicable to commercial litigation.
Other topics that were addressed included:
- Model laws on catalytic converter theft prevention, Strengthen Homes Program Model, a draft of an Online Marketplace Guarantees Model (submitted by Airbnb), and an Earned Wage Access Model, as well as proposals for readoption of several life insurance-related models.
- A conversation with state insurance commissioners recapping the events at the recent National Association of Insurance Commissioners (NAIC) Spring Meeting, and ongoing activities such as a framework for regulating insurer investments, the status of the implementation of the NAIC model bulletin on the use of artificial intelligence, Auto and Home insurance affordability, and efforts to support financial literacy courses in high schools.
- Discussions on addressing the affordability/availability of personal lines auto and homeowners’ coverage, and the cost and coverage of weight loss drugs.
The next meeting of NCOIL will be held in July in Costa Mesa, California.
By John Zillmer
Assistant Vice President, Regulatory Affairs
