Annual Financial Statements & Financial Reporting
    Connecticut Amended Rule 38a-54 deals with the qualifications of independent certified public accountants who perform annual audited financial reports. It went into effect Sept. 2.
 
    New Jersey is proposing changes to its rules governing audited financial reports. They include proposed amendments to NJAC 11:2-26.1 to .6, and 26.9 to .14; and a new rule, NJAC 11:2-26.14 to .16. Written comments will be accepted through Nov. 20.
 
 
Automobile Insurance
    New Jersey Bulletin 09-29 says the annual personal auto premium survey will not be required this year, but the Insurance Department anticipates requiring the survey to be completed next year.
 
    Texas requires motorcycle operators and passengers to wear helmets but police cannot arrest or cite a person for the offense if he or she is at least 21 and has health insurance. The Insurance Department is working on a standard proof of health insurance form. In the meantime, it says in Bulletin B-0037-09 that insurers should adopt procedures for providing documentation that an individual’s coverage includes medical benefits for injuries incurred as a result of an accident while operating or riding a motorcycle.
 
 
Consumer Privacy
    Ohio will soon have new rules requiring insurance companies to protect personal information. Starting Nov. 2, insurers will have to report any loss of policyholder information to the Insurance Department within 15 days of discovering personal information has been lost or stolen. “Personal information” is an individual’s first name or initial and last name, with either a Social Security number, a driver’s license or state identification number, or a bank, credit, debit card or account number. The reporting procedures will apply to insurers and the agents they appoint. The reporting procedures will be part of the department’s risk assessments. Insurance companies must educate their agents about their protection and reporting obligations. Details are in Bulletin 2009-12.
 
 
Health Insurance
    Missouri Bulletin 09-03 discusses the requirements for health benefit plans to cover, or offer coverage, for mental health and chemical dependency and substance use disorders.
 
    New Jersey has adopted and readopted certain rules governing the Small Employer Health Benefits Program.
 
    Oregon Bulletin INS 2009-9 tells insurers and HMOs that, beginning Oct. 1, they must pay an assessment of 1 percent of the gross amount of premiums earned during each calendar quarter. Payment is due no later than 45 days following the end of each calendar quarter.
 
    Wisconsin Emergency Rule Ins 3.36 requires insurers to provide coverage for treatment of autism spectrum disorders.
 
 
Life Insurance & Annuities
    The Arkansas Insurance Department and Securities Department have issued a joint communiqué, Bulletin 14-2009, warning insurance producers that a recommendation to replace securities like mutual funds, stocks, bonds and other investments is considered to be investment advice. Insurance agents cannot offer investment advice until they are registered as an investment adviser or investment adviser representative.
 
    Connecticut has posted revised Rules 38a-78-36 to -44 that establish minimum mortality standards for reserves and nonforfeiture values for preneed insurance products. The rules also require the use of the 1980 Commissioners Standard Ordinary Life Valuation Mortality Table. They have been in effect since April 2.
 
    The Kentucky Insurance Department is looking into whether insurers have restricted the ability of licensed life insurance agents to broker life settlements. The Kentucky department is seeking the views of resident life agents through an on-line survey about life settlements. Agents can participate after logging on to their department eServices account. The agency says it will keep individual survey responses confidential.
 
    Texas has issued Proposed Amended Rules 28 TAC 3.7001 to .7003 and .7006 dealing with minimum reserve standards for individual and group accident and health insurance.
 
    Utah has three new proposed rules:
    • R590-226, Submission of Life Insurance Filings;
    • R590-227, Submission of Annuity Filings; and
    • R590-228, Submission of Credit Life and Credit Accident and Health Insurance Form and Rate Filings.
    The comment period for all three proposed rules ends Oct. 15.
 
 
Producers
    Arkansas Bulletin 13-2009 and a Sept. 22 Idaho press release say those states will start using the NAIC/National Insurance Producer Registry Attachments Warehouse to streamline the filing of license documents and make it easier for producers to acquire multistate licenses.
 
    A District of Columbia notice says regulators there will start using the NAIC’s State-Based Systems application to managing continuing education functions starting Oct. 1. Until then, CE processing isn’t available.
 
    An Ohio notice discloses the state withdrew Amended Rule 3901-7-01, “Annual Review of Title Insurance Agent Escrow Accounts,” on Sept. 14. The original Rule 3901-7-01 remains in effect.
 
    North Dakota Bulletin 2009-2 reminds producers they must report any criminal history they may have, as well as any administrative action taken by other government agencies. “The duty exists both at the time of application and continues while licensed,” the Sept. 28 communication notes.
 
 
 Property/Casualty Insurance
    Texas Proposed Rule 28 TAC 5.9501 would adopt, by reference, an updated Commercial Lines Statistical Plan, effective Jan. 1, 2010. The proposed plan would incorporate the same requirements and instructions for reporting commercial lines insurance premium and loss data as the existing plan, with the exception of the reporting of fidelity and surety experience data. 
 
 
Rates, Forms & Filings
    New Jersey has issued:
    • Proposed Rule NJAC 11:1-2A.1 and 45.1, and 11:3-18, dealing with personal lines rate filing review procedures; and
    • Proposed Amended Rule NJAC 11:4-40.4 to .5 and 40A.4, and Proposed Repeal of NJAC 11:4-40 Appendix, dealing with life/health annuity forms.
 
     A New Jersey notice tells of plans to hold a Nov. 18 public hearing to hear testimony about its current file-and-use list. Life, health and annuity forms must be approved before use, but NJAC 11:4-40.9 allows some forms to be used without prior approval. The Department is not proposing that any changes be made to the current list, but will use the list to determine the specific types of forms that should be eligible for file-and-use.
 
 
(RR&B is produced with the assistance of The CLEAR Report and the Coalition Against Insurance Fraud.)
 
Copyright 2009 ProBusiness Publishing LLC

Publish date Sep 28 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.