Layman's Terms
Advocacy Update: Looking Back at Legislative Accomplishments of the Last Decade Insurors Director of Government Relations, Jim Layman, J.D., breaks down the legal and legislative issues facing our industry. With the first legislative session of the 2020s upon us, I thought it’d be fun to take a quick look back at some of the major accomplishments on the advocacy front for the Insurors over the last decade. Here is a list of some of the major topics our association has worked on at the state level: Producer Bill of Rights This was a bill brought by the Insurors and our partners in the legislature in 2011 to provide more due process and protection for agents that are under investigation by the Tennessee Department of Commerce and Insurance (TDCI). The bill required TDCI to provide notice to agents if they are under investigation and for TDCI to close pending investigations within two years. Insurors helped ensure the passage of this legislation. Duty to Read In 2012, following a couple of harmful court decisions, Insurors worked with industry and legislative partners in passing “Duty to Read” legislation. This legislation protects agents by requiring courts to presume that insureds have accepted their coverage if they have paid their premiums. Legal issues still exist with this statute and Insurors and its partners are currently working to ensure that the statute continues to protect agents. Certificates of Insurance In 2012, Insurors was successful in convincing the Department to issue a department bulletin on the impropriety of issuing certificates that attempt to amend, expand, or alter the terms of the underlying insurance policy. The Department declared
The Tennessee Insuror
that such conduct is a prohibited unfair trade practice. Certificates remain an issue though as third parties continue to request certificates that seek to alter the underlying policy. Insurors is pursuing legislation this year to define what a certificate of insurance is, and to make it a violation for an person to prepare, issue, or request a certificate that attempts to alter the policy or is otherwise misleading or deceptive. Workers’ Comp Opt-Out This was a proposal in 2014 that would have allowed employers in Tennessee to not provide workers’ compensation. Such a plan would have been devastating not only for our members but also for workers across the state. Insurors partnered with stakeholders in the business community to ensure that this legislation was defeated, but it is possible the idea could be proposed again. Health Insurance Fees Following the passage and implementation of the Affordable Care Act, many health policies did not allow for agent commissions. In 2017, Insurors helped pass legislation that allowed agents to charge fees for health insurance. Surplus Lines Convenience In 2019, after several months of raising concerns with TDCI, the Department changed its policy to only require proof of one declination in order to provide surplus lines coverage for most coverage categories. Insurors worked with the Department in requesting this change. Referral Fees In 2019, Insurors advocated for passage of legislation that ensures agents can adequately compensate employees and individuals that they employ or are in business with. This leg-
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