Automobile Insurance
    Colorado Bulletin B-5.19 tells auto carriers to report required information in a timely manner to the Motorist Insurance Identification Database and outlines what the state will do to enforce the statutory reporting requirements.
 
    Michigan SB 1066 will allow drivers to attend a basic driver improvement course to avoid being found responsible for a traffic violation and having that information reported to insurance companies.
 
Claims
    Maryland has changed three rules dealing with claims:
    • COMAR 31.10.11.07 details new circumstances under which a third party payer may deny a claim for reimbursement for specialty services.
    • COMAR 31.15.07.03 amends rules relating to payment of claims under property, casualty and title insurance policies. It also changes the time by which insurers must respond to an inquiry from the Insurance Administration about a claim. The new standard is within 15 working days or within the time period specified in correspondence to the insurer, whichever is greater.
    • COMAR 31.15.08.03 changes rules for paying claims under life and health policies and annuity contracts.
 
Health Insurance
    Colorado Regulation 4-6-5 changes benefits in small employer group health benefit plans and the basic and standard health benefit plans.
 
    New Hampshire Bulletin INS 08-0801-AB tells of criteria that the department will apply to determine whether a hospital or limited indemnity health plan constitutes an excepted benefit under state rules, and to determine whether a filing may be approved as a hospital or limited indemnity product.
 
    Ohio Bulletin 2009-01 discusses reporting changes in health plan provider networks by sickness and accident insurers and health insuring corporations.
 
    Utah rule R590-249 tells insurers how to provide written statements that disclose their policy limitations or exclusions, including secondary medical conditions.
 
Insurance Fraud
    Three bills in the Hawaii legislature – SB 36, SB 510 and HB 262 – seek to extend the authority of the state fraud bureau’s from automobile only to all lines except comp.
 
    The Coalition Against Insurance Fraud reports that the final three bills of the Mississippi AG’s fraud package have been introduced. HB 1595 provides the AG’s fraud unit all monetary penalties recovered by its prosecutions, thus helping increase funding. SB 2957 creates a theft-by-deception crime for targeting insurance fraud. Some believe this crime will help prosecutors better pursue some insurance fraud cases. HB 1295 extends the statute of limitations on insurance fraud cases from two years to five.
 
    A New Hampshire bill, HB 659, would expand the definition of insurance fraud to include lying to an insurer to lower a premium. The penalty would be base on the difference between the reduced premium and what should have been paid.
 
    Utah HB 263 would increase the annual assessment insurers pay to fund the state fraud bureau. The basis, premium volume in the state, won’t change. 
 
Life Insurance & Annuities
    Massachusetts HB 1094 addresses group life insurance premiums part of the premium is to be derived from funds contributed by the insured employees and the benefits of the policy are offered to all eligible employees.
 
    Montana SB 151 would require companies and agents selling viatical investments to meet new disclosure requirements and fully describe the risks of investing in viatical settlements.
 
Long-Term Care Insurance
    Colorado Amended Regulation 4-4-1 sets standards for long-term care insurance, particularly for sales and enrollment practices.
 
    Iowa IAC 191, 39.51(1) provides further guidance and clarification as to how the independent review process will operate.
 
Market Conduct Examinations
 
    Colorado Regulation 1-1-8 amends shortens the time, from 30 days to 20 days, that insurers have to respond to division inquiries and document requests. In addition, requests for extensions of time must now be for a specified period of time. Failure to provide a full or complete response to an inquiry or providing an incomplete response to division inquiries can lead to an immediate imposition of a minimum $500 fine per act or occurrence.
 
Medicare Supplements
    Colorado Amended Regulation 4-3-1 revises rules that provide for the reasonable standardization of coverage and simplification of terms and benefits of Medicare supplement policies.
 
    South Dakota rule 20:06:12:07 adds genetic discrimination requirements and new plan standards to the Medicare supplement rules.
 
Producers
    Colorado Amended Regulation 1-2-10 sets new terms and conditions for licensing insurance producers and agencies and establishes fees.
 
    A Louisiana notice says the state is will now base life, health & accident producer license renewals according to the birth month of the license holder. The new system will be in effect for licenses that expire April 30, 2010.
 
    Michigan has three new laws impacting producers:
 • SB 1475 modifies continuing education terms of renewal for insurance producers.
 • SB 1476 specifies the criteria for insurance producers courses. They apply to health, life, life and health insurance, property, casualty insurance, personal lines, and property/casualty insurance producers.
 • SB 1477 allows the insurance commissioner to waive producer license exams for persons holding certain designations.
 
    Washington WAC 284-12-090 and various sections of WAC 284-15 amends rules for the way in which insurance agents, brokers, solicitors and general agents are licensed, and the requirements for prelicensing and continuing insurance education.
 
Rate & Form Filings
    Colorado Regulation 4-2-11 lists the items that must be included in the annual rate report to the state.
 
State Regulation of Insurance
    The Arkansas Senate has approved legislation that would have the insurance commissioner serve at the pleasure of the governor. The insurance commissioner currently is appointed by the governor to a four-year term. SB 53 would require the state insurance commissioner to serve at the pleasure of the governor. The proposal is now with the House Committee on Insurance & Commerce.
 
(RR&B is produced with the assistance of The Clear Report)
 
Copyright 2009 ProBusiness Publishing LLC
February 2, 2009

Publish date Feb 02 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.