Insurance Subcommittee advances three bills to full committee

NASHVILLE — The Tennessee House Insurance Subcommittee voted Feb. 12 to advance three bills to the full Insurance Committee, approving House Bills 119, 329 and 161 after brief presentations and roll-call votes.

House Bill 119, presented by Chairman Hicks, would centralize the issuance of certificates tied to cash bonds or deposits under the Department of Revenue rather than splitting the process between two departments. "This legislation streamlines the entire process of accepting cash or bond ... so that the customers only have to communicate with one state department instead of currently two," Chairman Hicks said. Committee members asked no questions; the clerk conducted a roll call and the subcommittee recorded seven ayes and zero nays. The bill was recorded as passed and will go to the full Insurance Committee.

House Bill 329, presented by Chairman Martin, would allow Tennessee banks to join an established multi-employer welfare arrangement (AMEWA) that the presenter said has operated in North Carolina for 25 years. "This legislation permits Tennessee banks to join the AMEWA already established in the state of North Carolina, which they've had established for 25 years," Chairman Martin said, adding that the bill includes membership rules, enrollment caps and compliance requirements with Tennessee law. The Tennessee Bankers Association offered support and staff from the Department of Commerce and Insurance worked on bill language, the presenter said. The subcommittee voted by roll call; the bill passed and will move to the full Insurance Committee.

House Bill 161, presented by Chairman McCallum, would raise the cap on investments in foreign-owned companies for property and casualty insurers to match the 20% allowance currently permitted for life insurance companies; the presenter said P&C insurers in Tennessee are presently limited to 1%. "If it's good for the goose, it's good for the gander," Chairman McCallum said, describing the change as parity between insurer types. After no questions from members, the subcommittee voted and recorded six ayes and zero nays; the bill will be referred to the full Insurance Committee.

The committee began the session by reading committee rules and procedures, including deadlines for putting bills on notice and requirements for submitting amendments and witness requests. Committee staff present included Executive Legislative Assistant Samantha McCandless and Research Analyst Ryan Malone; Celeste Gearheart was identified as committee clerk and Tommy Woodard as sergeant at arms.

All three bills were advanced with minimal debate and no recorded amendments. The subcommittee's chair, Chairwoman Esther Hilton Haines, closed the calendar and the panel adjourned.