State legislators in Richmond have passed two property-casualty bills ready for Gov. Tim Kaine’s signature.

Among the legislation was HB 1982, which exempts insurers who write commercial automobile policies to large commercial risks from filing forms with and getting approval from the State Corporation Commission. The exemption exists for other insurance of large commercial risk.

Bob Bradshaw Jr.

Bob Bradshaw Jr., president and CEO of the Independent Insurance Agents of Virginia, said his membership was divided on the issue and it is “one of those bills where we get closer and closer to deregulating commercial insurance in Virginia.”

“When you talk about deregulating commercial insurance, on the one hand, it is more appropriate to craft policies for specific needs of the customers; but, on the other hand, it doesn’t get the regulatory scrutiny of the Bureau of Insurance,” he said. “It’s a mixed benefit.”

Another bill affecting all property-casualty and life insurers is HB 2430, which permits email notices to customers who agree to such communication with their insurers.

Bradshaw said the IIAV advocated an addition to the bill that agents of record are notified of any agreement between the customer and insurer in the first place and that agents receive copies of the email communication no more than 72 hours after transmission of the notice.

“The original legislation rubbed some legislators the wrong way, being able to cancel a policy via email, as not good public policy,” Bradshaw said. “There is a little discomfort in questioning whether the person received the notice and the impacts if they don’t, but we got the agent notification in there, so there is some comfort factor for consumer protection.”

This story originally appeared in the April 2009 print edition of Insurance & Financial Advisor.