N.D. Legislative Session Reaches Halfway Point

February 21, 2003

The 2003 North Dakota legislative session reached its halfway point, requiring a host of insurance-related bills to pass at least one
legislative body by Feb. 22, including legislation on insurers’ use of credit and the repeal of the no-fault auto insurance system.

“The National Association of Independent Insurers was successful in
amending insurance credit scoring legislation to protect consumers from unfair use of such scores, while allowing companies to continue to utilize this valuable underwriting tool. HB 1260 passed the House by a vote of 88 to 4,” Laura Kotelman, NAII counsel, said.

“SB 2275, which originally set out to address only the coordination of benefits provision of the North Dakota no-fault auto insurance system, could repeal no-fault completely effective August 1, 2005. A Senate amendment also would require that the legislative council study the motor vehicle no-fault insurance system, including coordination of benefits, during the 2003-04 interim. The legislative council will then report its findings and recommendations, together with any legislation required to implement the recommendations,” Kotelman noted. “SB 2275 passed out of the Senate by a vote of 41 to 4.”

Other insurance related bills include:

·HB 1332 relating to certified aftermarket parts was killed in the House after amendments unfavorable to the property/casualty insurance industry were adopted.
· HB 1323 relating to deregulation of commercial lines insurance was killed by a vote of 10 to 83.
· SB 2370 sought to curb abuses in the no-fault system was killed on the Senate floor after receiving a “do not pass” recommendation from committee.
· HB 1231 is the Department of Insurance’s anti-fraud bill. It passed the House 80 to 12 with the funding mechanism stripped.

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