Annual Statements
    A Florida notice is reminding companies that those carriers that want to apply for Limited Apportionment Company status, must have their application at the Office of Insurance Regulation by March 31.

Auto Insurance
    Idaho Bulletin 09-01 addresses legislative changes that impact liability coverage requirements for motorbikes, all-terrain vehicles and other utility-type vehicles. House Bill 602 changed licensing and registration requirements for motorbikes, ATVs and UTVs. As a result, the bulletin says those vehicles must include underinsured and uninsured motorist coverage unless the coverage is rejected by the insured. It suggests insurers and producers check current licensing and registration requirements for ATVs, UTVs and motorbikes to make certain that coverage is consistent with the state’s new requirements.

    Louisiana Bulletin 08-08 notes new minimum liability limits for vehicles weighing between 20,000 and 50,000 pounds. The new limits are $25,000 for bodily injury to, or death of, one person in any one accident; $50,000 for bodily injury to, or death of, two or more persons in any one accident; and $25,000 for property damage.

     New York Regulation 153 repeals and adds rules concerning flexible rating for nonbusiness vehicle insurance policies.

    South Carolina Bulletin 2008-21 is a reminder that a person must hold a South Carolina driver’s license to obtain insurance coverage in the state.

Data Calls
    Texas has two data calls due in February: 
    • Bulletin B-001-09 is a data call for policies in force as of Dec. 31, 2008. A separate filing is required for each licensed company, as well as to each surplus lines carrier eligible. The report is due by Feb. 6. The department has posted instructions and a data sheet to be used for the reporting. 
    • Bulletin B-002-09 is for HMOs and insurers writing preferred provider health benefit plans. The data – provider claims processing data and related information – is due by Feb. 15. Use the online data reporting form on the Insurance Department’s Web site.
   
Health Insurance
    Kentucky has several new rules for health insurers. 806 KAR 17:500 sets the requirements for a basic health benefit plan. 806 KAR 14:007 establishes rate and form file requirements for health insurers, and 806 KAR 17:005 contains the forms and reports that must be submitted to the Insurance Department.

    Maryland Bulletin 08-36 says the Insurance Administration will retain a recently imposed fee and tells discount plans how to file their fee with the state. 

    New Jersey Bulletin 09-02 says eligible young adults may remain on, or apply to become covered under, a parent’s group health benefits plan until the young adult’s 31st birthday. Those who have had their 30th birthday before Jan. 5 may apply, prior to their 31st birthday, to make a DU31 election. Because the implementation of rule is administrative only, the department encourages carriers to maintain 30-year-olds under coverage seamlessly until their 31st birthday, assuming the young adult meets all other eligibility requirements during that time. The bulletin was originally issued as Bulletin 09-01, but was reissued to correct a typographical error. Additionally, the state has revised a HINT form and a HINT supplemental form so they now conform to the changes in state law.

    Texas Bulletin B-0003-09 discusses an opinion from the Texas attorney general that group health plans must provide the same number of outpatient treatment visits for serious mental illness as they do for physical illness.

Life Insurance & Annuities
    Michigan SB 1508 removes the limit for the maximum amount of insurance available to any member of a group which qualifies for discretionary group life insurance.

    Michigan SB 1534 requires an insurer to disclose that an increase in the price of cemetery services may exceed an ultimate death benefit assigned under a life insurance policy or annuity in the limited death benefit period.

    The Ohio Department of Insurance, has adopted emergency rule 3901-6-10 and rule 3901-6-12 that change how policy reserves are calculated. Accordingly, the normal rulemaking procedures are suspended so that more robust mortality table guidelines are used in calculating policy reserves for life insurance products. “Because of the current economic conditions, the Department believes that a further delay in adopting these recommendations would put Ohio domestic life insurers at a competitive disadvantage, and could unnecessarily cause Ohio consumers to pay more for their life insurance and annuity products,” insurance director Mary Jo Hudson said in a statement.

Professional Liability Insurance
    Indiana Bulletin 168 lists the surcharge rates hospitals and physicians must pay with their medical malpractice insurance.
   
Producers
    Connecticut now accepts applications and credit card transactions online for some licensees. Eligible are:
    • first-time applicants for resident insurance producer (individual/agency) licenses. 
    • surplus lines brokers; 
    • casualty claims adjusters; 
    • motor vehicle physical damage appraisers; 
    • public insurance adjusters; 
    • certified insurance consultants; 
    • life settlement brokers; and 
    • reinsurance intermediaries.
    Producers who hold existing licenses and are seeking to renew those licenses must still submit a paper renewal form.

State Regulation of Insurance
    Nevada Bulletin 09-001 says all payments to the state that exceed $10,000 must be made electronically. Additionally, the Insurance Division will accept any electronic payment made through the automated clearing house.

    New York says a recent same-sex spouse circular letter applies to group life plans and to group disability plans as well as to group health plans. The Insurance Department lays out its position in OGC Opinion 08-12-05.  In November, the department said group health plans should treat participants’ same-sex spouses the same way they would treat opposite-sex spouses. But the opinion also said that the “analyses and conclusions are ‘applicable to all other kinds of insurance, too.” 

(Produced with the assistance of The Clear Report)

Copyright 2009 ProBusiness Publishing LLC
January 26, 2009

Publish date Jan 26 2009
Prior Issues

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