Annual Statements & Financial Reporting
    Texas is proposing amendments to rules in Section 7.202(b), concerning insurance holding company systems, and in Section 7.402, which would adopt the NAIC risk-based capital formulas for insurers and HMOs. 
 
 
Automobile Insurance
    Louisiana has two new laws impacting personal auto insurance:
    • HB 185 prohibits insurers from refusing to bind or sell collision or comprehensive automobile coverage when there is possible pending tropical storm or hurricane exposure.
    • HB 208 requires insurers to cover express or implied permissive users under an automobile liability insurance policy.
 
    North Carolina has rolled back private passenger auto insurance rates to just under 2006 levels. The changes will go into effect on Nov. 1, and are retroactive to Jan. 1. The settlement does away with the North Carolina Rate Bureau’s 9.4-percent 2008 rate increase and denies their 2009 request for an additional 1.4-percent rate increase, and includes an additional 0.5-percent decrease. Auto rates are now locked in until Oct. 1, 2011.
 
    Rhode Island SB 473 prohibits an insurance company from failing to renew a private passenger automobile policy when a chargeable loss is less than $1,500. The law also makes it illegal to assess a premium surcharge against any insured covered by a motor vehicle policy where a property damage claim is less than $1,500. The old standards were $1,000. The law goes into effect Jan. 1, 2010.
 
 
Data Calls
    Maryland Bulletin 09-19 announces a data call for information about title insurance agents. Data is due by Aug. 28. 
 
    New York Circular Letter 17 (2009) advises insurers and HMOs to submit a loss ratio report to account for claims paid through April 30 of the year following the reporting year when completing a required loss ratio report.
 
    Texas has issued a data call for insurers writing preferred provider health benefit plans and HMOs to help it determine compliance with prompt-pay laws. Use the online reporting form and provide data by Aug. 15.
 
 
Health Insurance
    Arkansas Bulletin 7-2009 tells of legislation that requires all individual and group policies and certificates to offer coverage for hearing aids. Insurers must offer coverage of at least $1,400 per ear for each three-year period. The benefit for hearing aids cannot be subject to any deductibles or copayment requirements. The requirement applies to policies and certificates issued or delivered starting Jan. 1, 2010. 
 
    Massachusetts Bulletin 2009-08 tells of legislative action that eliminate the maximum and aggregate benefit amounts that an insurer could impose on coverage of mandated early intervention services. There no longer is a maximum benefit for mandated early intervention services. Carriers must provide the increased benefits as of July 1 and notify insureds of the changes. Insurers must also submit revised contracts, policies, certificates and evidences of coverage, or relevant riders, endorsements or amendments as soon as possible. 
 
 
Insurance Fraud
    The Michigan House is considering a series of bills – HB 4244, HB 4844, HB 5020 and HB 5144 through HB 5151 – targeting insurer denials of claims. The bills would impose large fines on insurers that deny what supporters say are legitimate claims. One bill protects whistleblowers who bring cases to regulators. Another sets criminal penalties for insurance execs who allow an environment in which an insurer denies legitimate claims to save money. Insurers also would pay legal fees if they lose a bad-faith lawsuit. But the Coalition Against Insurance Fraud said that the insurance commissioner already has authority to go after insurers that unfairly deny claims, and passage also might have insurers agreeing to pay fraudulent claims to avoid the threat of punishment under this package.
 
 
Life Insurance & Annuities
    Alabama rule 482-1-078 expands scope of insurance rules regarding named payees on checks written for premiums to include annuities.
 
    A Nebraska notice says the state has adopted changes to rules in Chapter 84, its model regulation for preferred mortality tables that determine insurers’ minimum reserve liabilities. They permit the use of the 2001 CSO Preferred Class Structure Mortality Table as a substitution for the 2001 CSO Smoker or Nonsmoker Mortality Table. The implementation date was July 11.
 
 
Long-Term Care Insurance
    Connecticut’s new long-term care insurance regulation, rule 38a-501-19, has been posted to the Insurance Department’s Web site. It went into effect June 24.
 
    Texas SB 963 allows the insurance commissioner to reject long-term care insurance rate increases that aren’t actuarially justified. Insurers whose rate increases are approved must give policyholders at least 45 days notice before the new rate goes into effect, and must also offer policyholders an alternative, such as a policy with reduced benefits. The legislation takes effect Sept. 1.
 
    Vermont has a new rule, H-2009-01, Long-Term Care Insurance Regulation, most of which will go into effect April 1, 1010 (one part, Section 65, becomes effective upon the effective date of Vermont’s state plan amendment required by Section 6021 of the Deficit Reduction Act of 2005). Rule H-2009-1 will replace Regulation 91-1, which will be repealed March 31, 2010.
 
 
Medicare Supplement Insurance
     Iowa has adopted amendments to Chapter 37 of the Iowa Administrative Code dealing with Medicare Supplement Insurance Minimum Standards. Insurers and producers must comply with the rules starting Aug. 19, and the rules apply to policies sold or issued starting Aug. 19.
 
    Maine is proposing changes to rules in Chapter 275 dealing with Medicare supplement insurance. Among the changes:
    • new sections that would define benefit standards for policies issued starting June 1, 2010; and
    • a prohibition against use of genetic information and requests for genetic testing.
 
    Utah is proposing changes to rule R590-146, Medicare Supplement Insurance Standards. The comment period ends Sept. 14.
 
 
Producers
    Alabama has repealed rule 482-1-121 and replaced it with rule 482-1-146 to require the disclosure of criminal history of an applicant for a producer license. The new rule was effective July 17.
 
    A July 15 notice from Wisconsin provides details about changes in agent licensing requirements being made to conform to the NAIC model requirements for licensing and regulation of insurance agents. Three new lines of authority – variable life/variable annuity, crop and surety – are being created to have Wisconsin conform with the lines of insurance in the NAIC model. For the variable line, there will be a 6-month transition period where an agent can solicit under either the current licensing requirements or the new ones. After that period, the agent would only be able to solicit under the new requirements. Among other changes: online, self-study and correspondence course credits can be used to satisfy prelicensing education requirements. There is also a requirement for producers applying for a resident license to submit fingerprints for crime checks. Finally, the state is raising application and renewal fees.
 
 
Professional Liability Insurance
    Louisiana SB 106 limits civil liability for health care providers during a declared emergency. HB 554 provides civil immunity for volunteers rendering disaster relief or recovery services during a declared state of emergency, provided they aren’t providing care, assistance, goods or services for which a license is required.
 
 
Property/Casualty Insurance
    Louisiana HB 201 provides that inclusion of, or a change in, deductible shall not be deemed cancellation of a property insurance policy in certain circumstances.
 
    Each year, Minnesota established a dollar threshold that determines certain types of insurance are presumed available from licensed insurance companies and therefore aren’t available from surplus lines carriers. The threshold for homeowner and property insurance on owner-occupied dwellings is now $1.324 million, according to an Insurance Department notice.
 
    New Hampshire has amended rules Ins 1002.16 and .18 to add requirements for settlements to replace or repair lost or damaged jewelry, watches and precious or semi-precious stones, under applicable property insurance. Such settlements must:
    • be based upon an appraisal which reflects values of such property of like kind and quality found in the local market area; and
    • include a notice to the insured or claimant that they may request an appraisal from an appraiser having no arrangement with the insurer, and of their choosing.
 
 
Rates, Forms & Filings
    Louisiana HB 623 prohibits any property or casualty insurer from issuing a certificate of insurance or any other type of instrument which either affirmatively or negatively alters, amends, or extends the coverage, other than a rider, endorsement, or application attached to or made part of the policy
 
 
State Regulation of Insurance
    Arkansas Bulletin 6-2009 lists new legislation impacting insurance companies, and many of the new laws go into effect July 31.
 
    Connecticut Bulletin IC-21 (rev) expands the definition of “spouse” to treat a spouse in a same-sex marriage the same as a spouse in a heterosexual marriage for all purposes, including insurance. Forms will not have to be refiled, but:
    • “spouse” as it is used in existing policies will be interpreted to include a same-sex spouse; and
    • the department will not approve new forms that exclude a same-sex married partner.
    Finally, the state’s civil union law will be repealed effective Oct. 1, 2010, but won’t effect valid civil unions entered into before that date or the guidance to insurers.
 
    Delaware SB 121 forbids discrimination against a person on the basis of sexual orientation in insurance and other purposes.
 
    Iowa had adopted amendments to add a new subchapter, 191-15.11(5), to the Iowa Administrative Code that says any action by an insurer not in compliance with the Genetic Information Nondiscrimination Act of 2008 is an unfair trade practice. It is effective Aug. 19.
 
    Nebraska Bulletin CB-38 (Amended) revises the fees the Insurance Department charges insurers. They are now in effect.
 
    New Hampshire says in a notice that it will soon stop assessing retaliatory licensing fees for adjuster licenses. The document also includes revised license fees for the upcoming renewal period running from Aug. 2 to Oct. 1.
 
    Utah is proposing to eliminate three rules:
    • R590-101, Appointment and Termination of Individual’s License as Agents and Organizations Licensed as Agents by Insurers;
    • R590-123, Additions and Deletions of Designees; and
    • R590-141, Individual and Agency License Lapse and Reinstatement Rule.
    The comment period ends Sept. 14.
 
 
(RR&B is produced with the assistance of The CLEAR Report and the Coalition Against Insurance Fraud.)
 
 
Copyright 2009 ProBusiness Publishing LLC

Publish date Jul 20 2009
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Reprinted with permission from Insurance Compliance Insight.
Copyright © 2009 ProBusiness Publishing LLC
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