IIAV members are meeting with federal lawmakers to urge Congress for more help on business issues related to the coronavirus crisis, while also cautioning legislators to avoid “feel good” proposals which do nothing but disrupt the insurance industry. In the midst of the IIAV calls, Congress passed HR 7010, the “Paycheck Protection Program Flexibility Act” which should provide small businesses with additional flexibility in using their PPP loans. Both IIAV and IIABA now urge President Trump to sign this legislation into law as soon as possible.
During the calls, IIAV members expressed concerns on legislation such as HR 6494, “The Business Interruption Insurance Coverage Act” which would preempt state law and unconstitutionally nullify any such prior exclusions in force on the date the bill is enacted. If passed, the bill would be immediately challenged by the industry, tying up resolution to the proposal for years and clearly providing no help whatsoever to businesses in need. Similarly, HR 6497, "The Never Again Small Business Protection Act" introduced by Rep. Brian Fitzpatrick (R-PA), would require commercial p/c policies to include BI coverage for future “national emergencies” which would include losses associated with a virus or pandemic. If only 30% of small businesses purchase BI coverage now, how many will be able to afford the rates that would support HR 6497?
Several IIAV members urged quick action on HR 7011, the "Pandemic Risk Insurance Act" introduced by Rep. Carolyn Maloney (D-New York), that would somewhat mirror TRIA, which was created in the aftermath of the 9/11 terrorist attacks. The Big I believes there is merit in including the PRIA model in public policy discussions on how to cover future pandemics and considering the pros and cons while recognizing that the exposures are fundamentally different in nature and scope.
IIAV staff is scheduling the calls and discussions are being held on Zoom where past meetings were generally held during the National Legislative Conference.
Independent Insurance Agents of Virginia