Nashville to Washington

Public Chapter 23 – Insurance Holding Company Systems Act

Makes various changes to the "Insurance Holding Company System Act," including a requirement to file an annual group capital calculation, requirements regarding the use and filing of results of a liquidity stress test, and other related changes. Adds definitions for "group capital calculation instructions," "NAIC liquidity stress test framework," and "scope criteria" to the Act. Part of Administration Package. Effective July 1, 2023

Public Chapter 91 – Paid Family Leave Act

This bill enacts the "Tennessee Paid Family Leave Insurance Act," which creates a new line of insurance, known as paid family leave insurance, under which an insurer licensed to engage in the business of life insurance or disability income insurance in this state may issue policies covering against risk related to paid family leave in accordance with rules adopted by the commissioner of commerce and insurance. The bill defines "family leave insurance" as an insurance policy issued to an employer related to a benefit program provided to an employee to pay for a percentage or portion of the employee's income loss due to (1) the birth or adoption of a child by the employee;

(2) placement of a child with the employee for foster care; (3) Care of a family member of the employee who has a serious health condition, which the bill defines as an illness, injury, impairment, or physical or mental condition, including transplantation preparation and recovery from surgery related to organ or tissue donation, that involves inpatient care in a hospital, hospice, or residential healthcare facility, continuing treatment, or continuing supervision by a healthcare provider as defined in an issued insurance policy; or (4) The status of a family member of the employee who is a service member on active duty or who has been notified of an impending call or order to active duty.

Under the bill, such family leave insurance may be written as an amendment or rider to a group disability income policy or life insurance policy, included in a group disability income policy or life insurance policy or as a separate group insurance policy purchased by an employer. The bill was an initiative of Unum and is effective January 1, 2024.

Public Chapter 246 –Genetic Information and Life Insurers Prohibits a life insurance provider from canceling a life insurance policy based on genetic information, from requesting or requiring genetic testing as a condition of insurability, and from accessing the genetic data of an individual without consent. Effective July 1, 2023.

Public Chapter 104 – Electronic Delivery of Notices by Health Insurer

Authorizes a plan sponsor of a health benefit plan, on behalf of covered persons on the plan, to provide consent to the delivery of all communication related to the plan by electronic means, including the electronic delivery of a health insurance identification card. Requires the insurer for the health benefit plan to provide the insured with an opportunity to opt-out of delivery by electronic means and implement and adhere to a policy satisfying certain criteria before providing delivery by electronic means. Effective July 1, 2023.

Big “I” Legislative Conference

While we spend most of our time advocating at the State Capitol in Nashville, more than a dozen agents and representatives from the Insurors traveled to Washington, D.C. for the 2023 Big “I” Legislative Conference to do our part at the federal level.

This year we were successful in meeting with Tennessee’s elected representatives from Tennessee providing critical input on legislation and public policy matters important to Insuror members across the state. The participation and engagement by Insurors of Tennessee each year is vital in maintaining relationships and lines of communications with our elected leaders in Washington.

Following (page 8) is a rundown of the issues and messaging developed by our colleagues at Big “I” and delivered by Insurors to our Tennessee delegation in Washington.

Maintain Small Business Tax Fairness & Incentivize Mitigation Through Tax Credits

Insurors supported legislation which would make permanent the 20% small business deduction (Section 199A) passed as part of the 2017 Tax Cuts & Jobs Act. The deduction, which is scheduled to expire at the end of 2025, is heavily relied upon by many Big “I” members and their clients to expand their small businesses, hire more employees, and better serve their communities. Pass-through entities have factored this deduction into their operations so its expiration would result in a tax increase on many small businesses. Such an increase would create an unlevel playing field and put passthroughs at a disadvantage to those businesses filing taxes at the corporate rate. Additionally, we ask Congress to support legislation that encourages risk mitigation by providing targeted tax credits to individuals and businesses that proactively strengthen their homes and buildings against damages caused by natural disasters, such as wildfire, flood, and wind.

Ensure State Implementation of Federal Data Privacy Standards

Congress established data privacy standards for insurance agencies, insurers, and other financial institutions with the passage of the Gramm-Leach-Bliley Act (GLBA) in 1999. That statute requires financial entities to disclose informationsharing policies and inform consumers of their ability to stop the sharing of protected information with certain third parties. GLBA adopted a framework based upon functional regulation that appropriately empowered state insurance commissioners to implement and enforce these privacy protections for the insurance market. Congress is now considering significant revisions to these requirements, and it is critically important to leave implementation and enforcement of federal privacy standards in our industry to state insurance regulators and not cede authority to federal regulators. Additionally, federal privacy legislation must not include a private right of action, which would allow trial lawyers and judges to become de facto regulators and enforce the law through litigation. Finally, any new mandates must be clear, reasonable, and workable as well as recognize the differences between large and small businesses.

Extend & Reform the National Flood Insurance Program (NFIP)

With the NFIP extended through September 30 of 2023, Insurors called on policymakers to pass a long-term reauthorization of a modernized NFIP that would increase take-up rates, both in the NFIP and the private market. Specifically, the Big “I” supports H.R. 900, which would allow for private flood insurance to satisfy continuous coverage requirements and ensures that if consumers leave the NFIP for the private market and later must return, they can do so without penalty. The Big “I” also supports allowing refunds for unearned premiums for the mid-term cancelation of NFIP policies if a consumer elects to purchase a policy from the private flood insurance market. The Big “I” opposes any policies that would harm the Write-Your-Own (WYO) Program (including WYO reimbursement reductions) and undercut the valuable and trusted role that independent agents play in the sale and servicing of flood insurance. Finally, with Risk Rating 2.0 now implemented, it is essential for FEMA to clearly communicate with agents so they can explain rate setting and changes in premiums to their customers.

Protecting the Federal Crop Insurance Program (FCIP)

The current Farm Bill expires on September 30 of 2023. As Congress negotiates a new 5-year bill, it is critical to support policies strengthening the stability and effectiveness of the FCIP. Over the past several years, crop insurance has helped farmers navigate the challenges posed by weather disasters, supply chain disruptions, and uncertain markets. The Big “I” supports a strong and robust FCIP that provides certainty for our farmers and communities and will continue to oppose legislative and regulatory efforts to weaken the efficient and effective private sector delivery of crop insurance. Specifically, the Big “I” asks Congress to oppose any cuts to crop insurance.

Oppose Federal Trade Commission (FTC) Non-Compete Proposal

The FTC has proposed a national prohibition on the use of most non-compete agreements. Although this proposal is targeted at employment agreements that block workers from securing employment or starting a competing business