Annual Statements
    Illinois Bulletin CB 2009-01 reminds property/casualty insurers to submit an Actuarial Opinion Summary by March 15. It must comply with the NAIC Annual Statement Instructions for an Actuarial Opinion Summary Supplement (Sup. Inst. 22¬1). Illinois foreign companies must submit an AOS only if the state asks for one. The AOS is considered a confidential document and therefore should not be sent in with the annual statement. Instead, stamp it “confidential” and send it to the department separately. 

    Montana ARM 6.6.3504, .3506, .6501 to .6510 and .6811 amend rules for annual audited reports and establish accounting practices and procedures to be used in annual statements, including actuarial opinions. Here is the proposed rule and the order adopting it.

    Texas is proposing to repeal and issue a new rule 28 TAC 7.65 that would outline requirements for the filing of the 2008 annual statements, the 2009 quarterly statements, other reporting forms, and electronic data filings with the department and the NAIC.

Automobile Insurance
    Massachusetts Bulletin 2009-01 tells insurers how to apply “Safe Driver Insurance Plan” at-fault accident surcharges and policyholder appeals for those surcharges.

    Ohio HB 444 allows insurers to sell at auction a motor vehicle that comes into its possession through an insurance contract.

Data Calls
    New Hampshire Bulletin INS No. 09-001-AB seeks information for a data call related to losses attributed to a mid-December ice storm in the state. The data call consists of a series of three reports, due monthly over the next three months. The Insurance Department is requesting that the claims be grouped by type of insurance, location of the property and size of the loss. The state has posted instructions and the data worksheet to be used.

Health Insurance
    Arkansas tells insurers how to comply with state and federal privacy rules when releasing health insurance claims information to employers who need it to obtain quotes for group health plans. The department says most insurers shouldn't have a problem releasing such information. But insurers can consider adding language in policies that would permit such release or requiring employers to sign a certification form that would permit the practice. More information is in a Jan. 14 bulletin.

    New Hampshire Bulletin INS No. 08-081-AB provides 10 criteria the state will use to determine if a filing can be approved as a limited indemnity health insurance product.

    An Oregon announcement discusses its revamped health insurance rate filing procedures. A two-year-old law requires insurers to summarize rate filings in plain language, including the basis for the requested rate change, the average percent change in premium requested from the previous year, the amount of premiums received versus claims and administrative expenses, and the projected impact of the rate change on profits/losses. Now, the Insurance Department says it will standardize its internal rate review process to ensure filings are reviewed in a consistent manner. It says it will: 
    • Develop a checklist to be completed for each health insurance rate filing to ensure the department’s actuaries review the same information for all filings and have a record of each review; and 
    • Detail the required contents of a rate filing to ensure more consistency in the information included by insurers in rate filings. 
    In addition, the department says it will document its decisions with a written narrative of the filing and support for approval or disapproval of the filing. It will also post a summary document on the department’s Web site that provides a written narrative of the filing, including support for the department’s decision. This summary will be posted along with the rest of the filing documents currently available online. 
    Finally, Oregon will propose changes to the health insurance rate and form filing process during the 2009 legislative session. Those ideas focus on strengthened rate review standards, insurer administrative expenses and giving the public an opportunity to comment during the rate review process.

Life Insurance and Annuities
    Arkansas is proposing to adopt these five new or amended rules governing life insurance and annuities: 
    • Proposed Amended Rule 17, Life Insurance Disclosure;
    • Proposed Amended Rule 82, Suitability in Annuity Transactions;
    • Proposed Rule 96, Guidelines for the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities;
    • Proposed Rule 97, Life Insurance and Annuities Replacement; and
    • Proposed Rule 98, Annuity Disclosure Rule.

    Three more states have changed rules for the use of mortality tables for preneed insurance. Details are in Arkansas Rule 95, New Mexico rule NMAC 13.9.19 and in North Carolina 11 NCAC 11F.0601 to .0603 and .0605 to .0606.

Long-Term Care Insurance
    Iowa is adopting an amendment to a rule that went into effect Jan. 1. IAC 191-39.51A requires insurers to provide information about their contact person with the department. The change adds a requirement that any insurer with active long-term care policies or riders under which claims for benefits may be made on or after July 1, 2008 must also provide that information.

Omnibus Legislation
    Ohio SB 196 addresses a number of insurance issues. It revises the preneed funeral contract law, exempts the requirement that health insurers cover routine patient care administered during a cancer clinical trial from the requirements regarding mandated health benefit review and looks at other matters.

Producers
    District of Columbia DCMR Title 26, Chapter 1 (various sections) established categories of limited lines licenses and changes the term of an initial producer license.

    Massachusetts Bulletin 2009-02 announces the start of the second phase of the state’s online licensing for individuals and entities (OLLIE). Licensed resident and non-resident business entity insurance producers are now able to renew their producer licenses online and pay the associated fees at a secure Web site using electronic funds transfer. In addition, producers can use the OLLIE producer profile to add additional information, such as branch office locations, which will be viewable to consumers on the “AgentFinder” feature of Insurance Division’s Web site.

    Michigan SB 1401 lists 14 situations the insurance commissioner can use to suspend, revoke or refuse to issue a producer’s license.

    Oregon rule OAR 836-072-0001 to -0045 establishes a fingerprinting requirement that will be used for criminal checks of applicants for insurance licenses and renewals.

(Produced with the assistance of The Clear Report)

Copyright 2009 ProBusiness Publishing LLC
January 19, 2009

Publish date Jan 19 2009
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Reprinted with permission from Insurance Compliance Insight.
Copyright © 2009 ProBusiness Publishing LLC
Licensed from ProBusiness Publishing LLC. All rights reserved.