Annual Statements & Financial Reporting
    Nevada Bulletin 09-003 requires insurers to provide additional information about the annual premium tax reconciliation returns they file annually with the Department of Taxation. Forms with 2008 data are due to the Insurance Department by June 1; reports in future years will be due April 1.
 
 
Automobile Insurance
    Colorado is proposing changes to Amended Regulation 5-2-12. The intent is to include a definition of “usage-based” insurance rating and to provide guidance to insurers about the “right to protest” process as it relates to usage-based programs as well as other rating programs and to provide additional clarity regarding protest requirements. There are also rules governing the rejection of coverage, cancellation, nonrenewal, increase in premium, and reduction in coverage on “complying policies” of automobile insurance.
 
    New Jersey has amended its Auto Insurance Buyer’s Guide and is telling insurers to begin distributing the amended Buyers Guide as soon as practicable. The guidance is in Bulletin 09-14.
 
 
Claims
    Michigan Bulletin 2009-09-INS adjusts the maximum unearned premium refund for the period from July 1, 2009 through June 30, 2010 to $1,328. The maximum unearned premium refund for the most recent year– July 1, 2008 through June 30, 2009 – was $1,333. This bulletin supersedes Bulletin 2008-06-INS. State law requires the amount to re recalculated each year to account for cost-of-living changes.
 
 
Data Calls
    Texas is asking companies to send information for its 2009 Title Insurance Agents Statistical Report. First step: The acknowledgement of receipt and listing of branch offices form included with this letter should be faxed, e-mailed, or postmarked no later than May 4. Bulletin B-0021-09 says there are a number of changes in this year’s data call, including a fill-in PDF form to use, and provides details.
 
 
Health Insurance
    Oregon has revised OAR 836-053-0850, -855, -860 and -865 to implement HB 2433, which extends the period of eligibility for state continuation coverage from six to nine months to allow Oregonians to take full advantage of the benefits provided by the federal law. The specific rules changes:
    • extend the period of continuation coverage for assistance-eligible individuals to provide coverage periods of no less than nine months;
    • allow an independent election of coverage for all qualified beneficiaries;
    • create a second election opportunity for state continuation coverage for assistance-eligible individuals who experienced a qualifying event on or after Sept. 1, 2008 and before the effective date of HB 2433, and either did not elect or whose continuation coverage ended for any reason;
    • establish notice requirements for insurers; and
    • specify that enrollees who take advantage of the second election opportunity are provided a period of continuous coverage for purposes of calculating creditable coverage.
 
    Washington is considering proposed amendments to WAC 284-51, which sets standards for the coordination of benefits. The proposed changes to WAC 284-51-195, -215, -235 and -260, would mean:
    • carrier processing and payment of claims when coordinating benefits occur within clearly defined and understood time frames;
    • carriers no longer make estimated payments if they are secondary payers; and
    • there would have to be efficient processing of claims when coordinating benefits.
    Amending WAC 284-51-235 and -260 would also mean that, when more than one health plan covers the patient, information provided to covered members about submitting claims matches the requirements in the proposed amendments.
 
 
Insurance Fraud
    A Hawaii legislature conference committee has agreed on a bill, HB 262, that would stretch the fraud bureau’s oversight to all lines of insurance except workers’ comp. The fraud unit now investigates only auto schemes, and the Coalition Against Insurance Fraud is urging it should expand to provide focused pressure on schemes in other lines of insurance. But the legislature shuts down for the year in next week, so the window for passage remains open slightly.
 
    New Jersey bill A3863 would target auto rate evasion by criminalizing the use of out-of-state addresses to register and insure vehicles to avoid higher New Jersey auto premiums. It awaits action in the Assembly Financial Institutions and Insurance Committee.
 
    Two Florida bills target insurance fraud in one form or another:
    • SB 462, which the state legislature passed, would set up a statewide prescription-monitoring program to track addictive prescription drugs such as OxyContin. It now awaits the governor’s signature.
    • HB 1487 targets healthcare fraud in the Miami-Dade area, possibly America’s epicenter for health schemes. It would require license applicants to be U.S. residents for at least five years or post a bond of at least $500,000. It passed the House unanimously and now faces the Senate.
 
 
Life Insurance
    Utah is proposing to change rule R590-222, dealing with viatical settlements, and a number of associated documents that include the Initial Application Checklist, Provider Annual Report, Provider Renewal Application, Antifraud Plan Content Checklist and Certification, the Selling Your Life Insurance Policy brochure and the Verification of Coverage for Life Insurance Policies. A hearing has been set for June 9 and the comment period ends June 15.
 
Long-Term Care Insurance
    A new bill in Congress, H.R. 2096, is aimed at making long-term care insurance more accessible. The Long-Term Care Affordability and Security Act would permit long-term care insurance to be included in employer-sponsored cafeteria plans and flexible spending accounts, enabling people to pay long-term care insurance premiums using pre-tax dollars. The legislation also requires new consumer protections that are consistent with the most recent NAIC Long-Term Care Insurance Model Act and Regulation.
 
 
Producers
    South Carolina Bulletin 2009-03 says the state will no longer print or mail hard copies of licenses, limited-line appointments or letters of certification after June 30. Licensed individuals will be able to print copies of their license and letters of certification using SCDOI Online Services without charge. The bulletin tells how to register for the service.
 
 
Property/Casualty Insurance
    Florida lawmakers passed a compromise version HB 1495 that will ease pressure on the state to pay hurricane claims following a major storm and put state-run Citizens Insurance on the road to solvency. But the file-and-use section that would have allowed other property carriers to set their own rates was edited out (see related article about the legislation elsewhere in this edition).
 
 
Sales & Marketing
    Maine Bulletin 357 tells insurers and their claims representatives to end coercive tactics to settle claims (see related article about this bulletin elsewhere in this edition).
 
 
State Regulation of Insurance
    A New York notice provides legislative summaries of insurance-related bills affecting life, health and property insurers that were signed into law in 2008. The summaries are intended to provide a general overview, but don’t rely on them as a substitute for the actual bill language.
 
    A Rhode Island notice lists insurance bulletins that have been revoked or amended, and the dates they were in effect.
 
    The Bulletins page of the South Dakota Insurance Department Web site now has links to bulletins issued between 1972 and 1996.
 
    Utah wants to adopt a proposed new rule, R590-244, Individual and Agency Licensing Requirements. There will be a hearing June 4 and comments will be accepted through June 15.
 
(RR&B is produced with the assistance of The CLEAR Report and the Coalition Against Insurance Fraud.)

Publish date May 04 2009
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Reprinted with permission from Insurance Compliance Insight.
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