Insurance department says omnibus amendments to SB2374 due Monday; two sections likely removed

John Arnold, deputy insurance commissioner, told the Senate Industry and Business Committee that stakeholders have largely submitted feedback on Senate Bill 2374 and that the Department of Insurance aims to file an omnibus amendment by Monday so the committee can act the following Wednesday.

"We have received feedback from, I believe, all but 1 of the, stakeholder groups," Arnold said, and added, "we are to have an amendment to you by Monday, so we can get this out of committee by next Wednesday." The update followed a request from committee leadership for the department to summarize outstanding changes.

Arnold said the department is still reviewing a number of suggested changes and plans either this afternoon or the following morning to consolidate them into a single amendment for committee review. He said two sections introduced in the bill — identified in committee discussion as sections 2 and 3 — are likely to be removed after further investigation with the National Association of Insurance Commissioners (NAIC) because the NAIC accreditation standards make those provisions too difficult to adopt as written.

John Ward, representing the Association of North Dakota Insurers, told the committee that industry stakeholders remain engaged in drafting language and expect to provide suggested text by Monday. Ward said Chris Owen has proposed language for the surplus-lines portion of the bill (referred to in committee discussion as section 10).

Committee members and witnesses discussed several recurring amendment topics: the definition of "large commercial risk," surplus-lines language, rebating provisions and an arbitration clause. Arnold said the department is working with the Professional Insurance Agents (PIA) and with APCA on rebating and other concerns.

This was an informational update; no formal committee action or vote occurred on SB2374 during the meeting. The department and stakeholder groups told the committee they will return Monday with consolidated amendment language and that the goal remains to have the item ready for committee action the following Wednesday.

Next steps: committee staff and the insurance department will circulate the omnibus amendment to members and stakeholders when it is filed on Monday; the committee indicated it expects to take up the amended bill at its next scheduled meeting the following Wednesday.