7 Replies to “Al's a "like-able" guy.”

  1. Les

    Al is sure not an all bad sort of fella. I’m still curious as to his decision to vote against his constituents on the insurance bill to make the premium payer whole before an insurer subrogates for damages.

  2. Al Novstrup

    Les, I assume that you are referring to HB 1184 from the 2011 session. It was voted down in the Senate Judiciary Committee by a 4-3 vote. It then was sent to the Senate floor without recommendation by the committee. This is very unusual and indicates that the committee is unwilling to recommend the bill.

    Testimony in committee indicated this bill would drive up insurance premium cost for people who buy insurance. There was testimony that only 6 states have laws that agree with HB 1184. 11 Senators voted to debate the bill. I voted with 23 other Senators that voted no.

  3. PP at the SDWC

    Les, having worked at the SD DOI for about 6 years, I’ve got to agree with Al on this one. Subrogation is far more complicated than one might think, especially when two companies disagree on fault or responsibility, even by degree. It’s basically legislating a zero deductible in certain instances.

  4. Les

    I was referring to Rounds veto in 10. Al was one of a handful that that consummated the Gov’s veto.

    I agree subrogation can be complex. Explain why anything should be held over the needs of the insured? These companies can fight it out without initially involving the insured, my opinion!

  5. Al Novstrup

    The legislature could mandate a zero deductible insurance plan. The greater the coverage, the greater the premium. Mandates provide extra coverage at an additional cost.

    http://www.cahi.org/cahi_contents/resources/pdf/MandatesintheStates2011ExecSumm.pdf
    See Table 3

    Here is a link that shows you how many mandates each state has. Some states have 50 to 70 mandates. South Dakota has 28. Insurance companies in South Dakota can offer basic insurance packages up to deluxe all inclusive coverage (at a higher price) and consumers can demand basic insurance packages up to deluxe insurance. In the high mandate states the insurance companies can only offer higher priced deluxe insurance. The price could easily mean that some people are unable to afford any insurance.
    I would think it would be better if we allow the buyers and sellers the freedom to decide what should be included. Let the buyers decide, and not the legislature.

  6. Les

    Tell me Pat, how do our legislators protect the premium payer in those dispute cases?

    Should a mandate to expeditiously cover an insured loss cost a premium boost Al? BTW your chart looks strictly health care which you guys have already voted to repair with the ACA through our exchange.

    I remember when our state had some unfriendly insurance policy and companies/types of coverage were as scarce as hens teeth, but we are now so friendly our insurance can almost be of little value at times.

  7. Les

    Apparently it’s all about why change cannot work and not about protecting the constituents that vote you in Al.

    I’d much rather send you $25 for a decent answer than $100 to Paul to make sure I don’t have to deal with the cozy governor’s club.