Wyoming Legislature Approves Countersignature Bill

The Wyoming Senate has voted 29-1 to approve legislation (HB 56) that will repeal the state's countersignature requirements on property and casualty insurance policies and various other resident agent reforms. The bill, which passed the House 45-14-1 last month, has been forwarded to Governor Jim Gehringer for his signature.

"We have every reason to believe the Governor will sign the bill," said Mark Skinner, American Insurance Association assistant vice president, southwest region. "This is a very gratifying victory in what has been a multi-year effort," Skinner added.

In December of 1999, a Wyoming interim legislative study committee overwhelmingly approved a proposal for consideration by the 2000 legislature that was identical to an AIA bill that was defeated in the previous legislative session. AIA served on the insurance department task force that initially recommended the legislation and applauded the legislature's approval of the measure.

"AIA is dedicated to removing these regulatory requirements which really serve no purpose in the twenty-first century other than to drive up the cost of providing insurance to consumers," said Skinner. "We are very pleased with (yesterday's) action by the Wyoming legislature to follow the lead of so many other states by moving in the direction of reducing bureaucracy and increasing efficiency in the requirements they make of insurers."

The vast majority of states no longer require countersignatures on policies--that is the "signature" of a resident agent on policies placed by nonresident agents.

In 1999, Louisiana, Georgia, Minnesota, Mississippi, South Carolina, and Nebraska repealed similar laws leaving only a few states, which continue to make such requirements. This year, West Virginia has a similar bill pending in committee that is expected to pass before the legislature adjourns later this week.

Skinner outlined AIA's support for the repeal of such laws by saying, "Countersignature requirements serve as an unnecessary barrier for insurance customers that do business across state borders.

"The countersignature process undermines business efficiency without guaranteeing some greater protection for the insurance customers," Skinner said. "Moreover, they generate unnecessary costs as companies and agents seek to ensure compliance with the varied laws between the states."

Following signature by Governor Gehringer, the new law will become effective January 1, 2001.