Tennessee House Bill HB2010

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/24
• Refer: 1/25/24
• Refer: 3/12/24
• Refer: 3/26/24
• Chaptered: 5/9/24
• Passed: 5/9/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 12; Title 50 and Title 56, relative to insurance.

Impact

The introduction of this bill signifies a proactive approach by the state legislature to monitor and enhance the insurance landscape for local governmental units. By requiring a thorough examination of insurance providers, the bill aims to improve the overall quality and affordability of workers' compensation coverage available to these entities. This could ultimately help local governments secure better insurance deals, which is vital for managing their budgets and mitigating financial risks associated with workers’ compensation claims.

Summary

House Bill 2010 aims to amend Tennessee Code Annotated by introducing provisions related to insurance, specifically focusing on workers’ compensation policies provided to local governmental entities. The bill mandates that the comptroller of the treasury conduct a comprehensive study of all insurers, including insurance pools, to evaluate their solvency and perform a comparative analysis of rates. This initiative is crucial for ensuring that local governments have access to competitive and stable workers’ compensation insurance options.

Sentiment

The sentiment towards HB 2010 appears to be generally positive among lawmakers and local government advocates, recognizing the importance of having robust oversight in the insurance sector. Supporters emphasize the necessity of ensuring that local governments do not face undue burden due to inadequate insurance options. Conversely, there may be concern among insurance providers regarding the implications of increased scrutiny and regulatory measures that could arise from such a study.

Contention

Notably, while the bill predominantly seeks to improve conditions for local governments regarding workers' compensation insurance, it could also provoke discussions about regulatory balance. Some stakeholders might argue that heightened scrutiny could place additional operational pressures on insurance companies. As the comptroller prepares to report its findings by January 1, 2025, the outcomes of this study will be pivotal in determining future legislative measures and ensuring fair insurance practices within the state.