Conference committee keeps rebating limits in SB 2374, adds study on towing for liability-only vehicles

A Senate–House conference committee voted unanimously Tuesday to amend engrossed Senate Bill 2374 to remove a proposed exemption for large commercial insurance risks from the state—s rebating restrictions, clarify that federal crop insurance is subject to the same rebating rules, and add language directing a study into towing and recovery costs for motorists who carry liability-only coverage.

The change to SB 2374 came after extensive discussions with insurers, agents and stakeholders, and a presentation from Deputy Insurance Commissioner John Arnold. "The proposed amendments ... are to remove the large commercial rebating from the bill, and keep the rest of the bill intact," Deputy Insurance Commissioner John Arnold told the conference committee.

The committee's action follows concerns raised by industry representatives and state law enforcement about two separate problems: uncertainty over how rebating rules should apply across different sizes of insured entities, and increasing incidents in which motorists with…