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Subcommittee advances bill allowing Tennessee banks to join multi-employer welfare arrangement
Summary
House Bill 329 passed the House Insurance Subcommittee on Feb. 12 to permit Tennessee banks to join an existing multi-employer welfare arrangement (MEWA), a pooled insurance model, with supporters citing cost savings and existing example in North Carolina.
The Tennessee House Insurance Subcommittee on Feb. 12 advanced House Bill 329, a bill to allow Tennessee banks access to a multi-employer welfare arrangement (MEWA) already operating in North Carolina, the bill’s sponsor said.
Sponsor Chairman Martin told the committee the MEWA — described in the hearing by acronym AMIWA — pools risk across employers in the same industry and can lower insurance costs for small community banks. He said the arrangement in North Carolina has operated for 25 years and that the bill includes membership rules, enrollment caps, and requires compliance with Tennessee licensure, solvency and tax laws.
Chairman Martin said the Tennessee Bankers Association supports the legislation and that language was developed with the Department of Commerce and Insurance. There was no recorded opposition during the committee discussion and no amendments were offered.
On a roll call, Representatives Bob Freeman; Youssef Hakim; Renee Jones; Anssavi Kumar; Kevin Raper; Chairwoman Esther Hilton Haines; and Rick Scarborough voted to advance the bill (7 ayes, 0 nays). The bill will be considered next by the full House Insurance Committee.
The measure, as presented in committee, does not itself set solvency standards beyond requiring compliance with existing Tennessee law; additional regulatory review by the Department of Commerce and Insurance would occur if the bill becomes law.
