MIDWEST REGIONAL NEWS

OHIO LAW LIMITS ASBESTOS
AND SILICA LAWSUITS

Ohio is the first state to adopt medical criteria for filing asbestos and silica lawsuits. Governor Bob Taft signed HB 292 and HB 342 in June. The asbestos and silica medical criteria measures place limits on lawsuits, requiring a plaintiff to provide medical evidence to prove that exposure to asbestos or silica was a substantial factor in causing his or her illness.

Unimpaired claimants are clogging the system and, in some cases, potentially prohibiting the truly sick claimant with a severe asbestos-related illness from receiving equitable legal and financial remedies, said John Lobert, Property Casualty Insurers Association of America's (PCI) senior vice president of state legislative affairs.

Silica-related claims and lawsuits have been steadily increasing but will probably never reach the level of immense asbestos litigation and its impact on business and insurers, according to PCI. Silicosis--a respiratory disorder--is the oldest known occupational disease, caused by inhaling silica particles from quartz found in rocks and sand.

Area news

Annual meetings planned

Professional Independent Insurance Agents of Illinois (PIIAI)--October 6-8, Crowne Plaza in Springfield. For more information, contact PIIAI at (800) 628-6436 or info@piiai.org.

Independent Insurance Agents of Indiana (IIAI)--November 14-16, Westin Hotel in Indianapolis. For more information, go to www.bigi.org.

Michigan Association of Professional Insurance Agents (MIPIA)--September 24, Lansing. For more information, contact MPIA (pjames@mipia.com or mbaas@mipia.com).

Professional Insurance Agents of Minnesota--September 23-24, Mystic Lake Casino Hotel in Prior Lake. For more information, e-mail the association (gsather@piamn.com).

Indiana

Attorney General overrides state DOI

The Indiana Attorney General recently upheld the legislative intent of the state's law on credit scoring, overriding the Indiana Department of Insurance's Bulletin 123 which interpreted the meaning of "sole use" restriction language in the NCOIL insurance scoring model bill.

Under the department's interpretation, more than one factor, in addition to an insurance score, would have to change in order for an insurer to use that score as an underwriting or rating tool. According to Neil Alldredge, National Association of Mutual Insurance Companies' (NAMIC) director of state affairs, "The language is clear. 'Sole use' means 'only.' Any other interpretation is not consistent with the NCOIL model and Indiana law."

Illinois

Electronic notification bill modernizes law

In July, Governor Blagojevich signed SB2491, which allows insurance companies to use modern technology (electronic means) to notify insurance agents and brokers about policy cancellations.

Minnesota

Insurance-related legislation passes

A number of insurance-related bills have been signed into law by Governor Tim Pawlenty. The new laws include: HF 425 which helps insurers deal with frivolous class-action lawsuits by limiting appeal bond amounts to the actual amount of the judgment, with a $150 million cap; and HF 2017 which allows the Minnesota Joint Underwriting Association to issue medical malpractice insurance policies on a primary basis to nursing facility applicants and other long term care provider applicants. HF 2640 is a fraud bill which establishes the Division of Insurance Fraud Prevention to conduct investigations and make arrests in relation to the enforcement of Minnesota insurance fraud law.

Wisconsin

Helbach named to insurance education group

Earlier this year, Tom Helbach, president of Mosinee Insurance Agency in Mosinee, was named a charter member of the National Society of Agents for Consumer Education, an organization of insurance professionals committed to providing quality insurance education. *