In its 2017 regulatory outlook for Illinois, the American Insurance Association (AIA) said one of the key challenges this year, among several, is the reform of the state’s workers’ compensation system.
“Looking at Illinois for 2017, we see several key challenges on the horizon which will affect property-casualty insurers and their policyholders in the state,” said Steve Schneider, AIA’s vice president for state affairs, Midwest region.
The most notable is the reform of the state’s workers’ compensation system.
“Hostile forces in the Democrat led House of Representatives twice passed legislation last session that would impose government price controls on insurers’ workers’ compensation premiums,” he said, referring to H.B. 1287 and S. 2901. “These measures threaten the most competitive workers’ compensation market in the country, hurting Illinois businesses in the end.”
Schneider said AIA will work with the governor and legislator on reforms that lower costs by limiting prescription drug usage and costs, enacting a Medicare based medical fee schedule and increasing disclosure requirements for lawyers and medical providers.
Also, the organization would like to see a law restored that allows large commercial accounts to purchase insurance products from insurers admitted to do business in Illinois and exempt from form filing requirements.
“We’ll be striving hard this year to restart this important commercial lines’ modernization legislation,” said Schneider.
In addition, AIA supports the implementation of a web based system for automobile insurance verification based on the Insurance Industry Committee on Motor Vehicle Administration (IICMVA) model.