Automobile Insurance
    Idaho says in Bulletin 09-03 that two new laws, SB 1098 and SB 1131, have altered liability coverage requirements for motorbikes, all-terrain and utility vehicles. The Insurance Department has rescinded Bulletin 09-01 and is instructing carriers and producers offering such coverage to review the legislation.
 
 
Claims
    South Carolina Bulletin 2009-02 addresses the elements of a new prompt pay law that goes into effect June 11. Impacted are insurers, producers, third-party administrators and others who transact life, accident and health insurance business. The bulletin includes a Q&A section and a copy of the Health Care Financial Recovery and Protection Act.
 
    Texas Bulletin B-0019-09 states that weather-related events of March 30-31 in several counties are a catastrophe for the purpose of claims processing. Claims are subject to the additional time periods. 
 
 
Health Insurance
    Connecticut is proposing two new rules – 38a-513 and 38a-505-13 – that would set minimum standards for group and individual specified disease health insurance policies.
 
    Maryland Bulletin 09-10 details changes to COMAR 31.11.06, dealing with the comprehensive standard health benefit plan in the small employer market. The changes are effective April 20 and apply to contract that are issued or renewed on or after July 1. The changes:
    • Children who can meet the definition of dependent can remain covered until their 25th birthday.
    • Surgical treatment for morbid obesity is a new covered service.
    • The exclusion for medical or surgical treatment for obesity has been deleted.
 
 
Insurance Fraud
    The Hawaii legislature is one step away from passing a bill to expand the jurisdiction of the state’s insurance fraud unit. HB 262 unanimously cleared the Senate earlier this week and was sent back to the House for concurrence. It would expand the unit’s jurisdiction to all lines of insurance except for workers’ compensation. Currently, the unit is restricted to auto insurance fraud.
 
    Maryland HB 160 includes acting as a public adjuster without a proper license in the definition of insurance fraud. Another state law, HB 142, allows insurers to require disability insurance recipients to periodically confirm they’re eligible for benefits. Insurers that require the confirmation also must warn the recipient that it’s a crime to knowingly lie about eligibility.
 
    The Michigan legislature again is looking at a bill creating an insurance fraud prevention authority. SB 410 is similar to a bill introduced in 2008. It would expand the existing auto theft prevention authority into a broader insurance fraud prevention authority. The proposal would be funded by increasing the fee insurers pay for each auto policy they write in the state. The major points of contention are over how much insurers would pay and how the board would be structured. As it stands now, Michigan auto insurers would make up most of the board.
 
 
Life Insurance
    Connecticut rule 38a-78, 42-46 establishes minimum mortality standards for reserves and nonforfeiture values for preneed insurance products. Additionally, companies must use the 1980 CSO Life Valuation Mortality Table.
 
    Iowa has amended rules in IAC 191-48 dealing with viatical and fife settlements. The changes are technical corrections that conform the rules to the Iowa Code. They went into effect April 3.
 
 
Producers
    New Jersey will soon propose a change to the requirement for producers to witness the signature of a prospective insured on the application prior to submitting it to the insurer. Bulletin 09-11 notes that, in light of technological advances in obtaining electronic signatures, Internet sales and updated signature laws, the department will propose to amend NJAC 11:17A-4.2 to require such witnessing of signatures only when there is a face-to-face meeting and only when the insurer requires it. The rule amendment should be proposed later this year. Until the amendment is adopted, the department says enforcement actions will not be taken against insurers who are obtaining electronic signatures or conducting Internet sales without signatures.
 
 
Property/Casualty Insurance
    Maryland Bulletin 09-08 reminds insurers that a new state law requires homeowner insurers to offer at least one actuarially justified premium discount to policyholders who have improved their property to mitigate losses from hurricanes and other storms. The bulletin tells the type of discounts that carriers can offer and discusses other aspects of the new law.
 
 
State Regulation of Insurance
    Kentucky Bulletin 2009-02 provides a summary of new insurance legislation. Addressed are laws governing low-speed vehicles, motor vehicle salvage titles, pharmacy audits and food spoilage following declared disasters.
 
    A new state law in Maryland will require insurance companies to disclose any policies they, or their predecessor companies, wrote for slave owners from the founding of the country through the end of the Civil War. SB 751 requires insurers to provide information slaveholder insurance policy issued during the slavery era and a copy of each document in the insurer’s records. Reports are due by Oct. 1, 2011. The bill was the brainchild of three college students who, according to published reports, wanted to “get a dialogue going” about the slavery era. California and Illinois have similar laws, while Iowa asks insurers to supply the information voluntarily.
 
(RR&B is produced with the assistance of The CLEAR Report and the Coalition Against Insurance Fraud.)
 
Copyright 2009 ProBusiness Publishing LLC

Publish date Apr 20 2009
Prior Issues

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