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Committee holds omnibus insurance package for technical fixes after review
Summary
Representative Layman presented HB 12-60, a multi-part insurance omnibus addressing fraud reporting (routes to the NICB), a fee schedule for the all-claims payer database, guarantee-fund updates, nonrenewal-notice timing and condominium insurance options; the committee held the bill for one week to resolve technical and solvency questions with the Department of Insurance.
Representative Layman described HB 12-60 as an omnibus insurance bill containing many discrete provisions affecting reporting, fees, solvency standards and consumer protections.
On fraud, Layman said the bill creates a reporting pathway: "This says you report that to the National Insurance Crime Bureau. They can share that with the Department of Insurance," giving insurers a statutory mechanism for where to send reports of suspected fraud. The bill also adds a fee schedule for the all-claims payer database and clarifies statutory procedures for members seeking explanations when a rate rises substantially above filed rates.
Other components address small farm mutuals (expedited department authority to enable mergers or acquisitions when reinsurance is lost), NAIC-driven changes to the guarantee fund and a line clarifying uninsured-motorist offerings on excess commercial liability and self-insured plans. Layman said nonrenewal-notice windows would be extended (homeowners from 20 to 60 days, autos from 20 to 30) and new language would require carriers that rely on aerial imagery to provide insureds a way to access the photos, appeal and a 60-day cure period.
Industry witnesses from State Farm and the Insurance Institute of Indiana said they supported the bill. Senators pressed the sponsor on the meaning of "reasonable belief" for fraud reporting, how the Department of Insurance will structure fees (including a potential $1,000/month analytics access licensing fee), and whether guarantee-fund language excludes punitive/exemplary damages when insolvency triggers relief. Layman deferred technical solvency and fee-matrix questions to DOI and the bill was held one week to work through those items.
Next steps: the sponsor and committee asked DOI to clarify technical solvency language and to provide more detail about the fee schedule before the committee reconvenes.
