Electronic proof of coverage is one of the hottest insurance-related legislative trends this year,
according to the Property Casualty Insurers Association of America (PCIAA). A total of 22 states are
currently considering electronic proof of coverage bills or proposals during the 2013 legislative sessions.
Legislative Update: Electronic Document
Delivery and Innocent Co-Insureds
With kathy Donovan, Wolters kluwer Financial services
E Permitting a party to withdraw consent
for electronic notices and documents.
The bill’s provisions also specifically
proved the electronic delivery outlined
is considered equivalent to any delivery
method required under applicable law, in-
cluding first class mail and certified mail.
In Indiana, SB 170 essentially seeks to
protect innocent co-insureds. It aims to
prohibit insurers from denying cover-
age for damage to an insured individual
under P&C policies if that individual is
determined to be an innocent co-insured.
A specific definition of an “innocent co-
insured” is contained in the introduced
bill, which also looks to establish adverse
underwriting consumer protections.
A Connecticut bill, SB 675, proposes
a requirement that auto insurers notify a
policyholder when a claim has been filed
against his or her automobile insurance
policy. The bill would further require that
insurers allow the policyholder to contest
such a claim.
Q. What are some key topics impacting claims that you have seen in legislative bills or regulatory proposals so
far this year?
With the focus in 2012 on personal
injury protection (PIP) benefits in Florida
and New Jersey and upcoming changes in
New York’s Regulation 68, it’s likely that
we could see initiatives in 2013 looking
to adopt revisions to this same area of
motor vehicle insurance. Oregon’s current
HB 2821 seeks to modify the amount of
reimbursement to a PIP provider when
total benefits exceed damages. It also aims
to extend PIP benefit coverage for certain
expenses from one year after the date of
injury to 2 years after the date of injury.
While it’s still too soon in the legislative
year for Michigan, given the reorganization in state government creating the
Department of Insurance and Finan-
With each new year comes a rash of proposals, and 2013 has been no dif- ferent. Claims Magazine
recently spoke with Kathy Donovan,
senior compliance counsel for Insur-
ance Compliance Solutions at Wolters
Kluwer Financial Services, to review
the legislative activity to date and what
regulations and claims-specific provi-
sions might be in store. Here’s what she
had to say:
Insurers’ operational efficiency goals
in both underwriting and claims often
embrace electronic alternatives, includ-
ing delivery of certain insurance docu-
ments. Last year, the industry witnessed
Delaware’s HB 223, effective May 22,
2012, which allowed for insurance no-
tices and documents to be delivered by
electronic means in accordance with the