Annual Statements and Financial Reporting
    Arkansas has issued a new Rule 25 for annual financial reporting.
 
    Maryland is proposing changes to two financial reporting rules.
    • Rule 235, Audited Annual Financial Reports, would add new five new sections for:
        ◊ scope of audit and report of independent certified public accountant;
        ◊ requirements for audit committees;
        ◊ conduct of insurer in connection with the preparation of required reports and documents;
        ◊ Sarbanes-Oxley-compliant insurers; and
        ◊ effect of changes in premium volume.
    • Rule 945 would change rules for the annual report supplement for health insurers.
 
 
Automobile Insurance
    Michigan senators have voted down SB 166, so insurers there will continue to be allowed to use geographic location as a risk factor. Insurers says geography is a proven predictor of loss and risk.
 
 
Health Insurance
    Delaware Bulletin 35 requires health insurance contracts issued, delivered or renewed after Dec. 1 to include coverage for a virtual colonoscopy for colorectal cancer screening.
 
    Illinois’ largest private health insurers and HMOs will cover the cost to administer H1N1 flu vaccine. Aetna, Blue Cross and Blue Shield of Illinois, CIGNA, Health Alliance, Humana, PersonalCare, Unicare, and UnitedHealthcare say they will cover those costs for their policyholders. Louisiana, in an Oct. 23 notice to Louisiana insurers, urged its insurers to cover those costs as well.
 
    Oregon has repealed and adopted rules governing the use of federal subsidies for the continuation of health benefit plans. New rules OAR 836-053-0850, 836-053-0855, 836-053-0860 and 836-053-0865 replace OAR 836-053-0850T, 836-053-0855T, 836-053-0860T and 836-053-0865T. They went into effect Oct. 22.
 
    Wisconsin Proposed Rule Ins. 3.34 would provide health insurance coverage of family members up to age 27.

 
Insurance Fraud
    Members of the Senate Judiciary Committee have introduced S1959 to strengthen federal health care fraud laws. The bill targets fraud against federal and private health insurance. It would increase funding for prosecutors by $20 million a year through 2016 and require tougher sentencing guidelines for health-care fraud offenses in federal courts.  
 
    Phone numbers of vehicle accident victims in Texas will be removed from police accident crash reports starting Jan. 1, 2010. The change is an attempt to prevent shady lawyers and medical providers from tracking down the victims for insurance schemes. The state transportation department earlier had agreed to remove the numbers, only to reverse course when reconsidering whether the numbers were relevant for the crash reports, reports the Coalition Against Insurance Fraud.
 
 
Long-Term Care Insurance
    Iowa Amended Rule 191-39 establishes a long-term care partnership program in the state.
 
 
Producers
    Arizona Bulletin 2009-04 says the state is jumping on the bandwagon in allowing the use of the National Insurance Producer Registry’s Attachments Warehouse, which receives, stores and shares licensing documents with the states. A number of other states – Alaska, Arkansas, Idaho, New Jersey, North Dakota and Oklahoma among them – have issued similar guidance (ICI, Oct. 26, 2009).
 
    Mississippi Bulletin 2009-08 provides instructions and deadlines for submitting producer renewal appointments. Renewal dates for fire & casualty, life, fraternal and burial licenses are now May 31; nonrenewals must be reported by March 15. 
 
    A Mississippi announcement says computer maintenance to implement the Producer Licensing Model Act is keeping some producer licensing systems offline. Affected are:
    • nonresident license applications, renewals and reinstatements – unavailable until Nov. 13;
    • resident license applications, renewals and reinstatements – unavailable until Nov. 3; and
    • other Mississippi services – unavailable until Nov. 3.
 
    Oregon OAR 836-080-0160 deals with a producer’s use of professional certifications and designations. It was adopted Oct. 30 and is effective now.
 
 
Property/Casualty Insurance
    Delaware Agent Bulletin 17 directs producers to tell their clients about the provisions of a new state law dealing with insurance requirements for condominium owners and condo associations. The minimum coverage must be 80 percent of the actual cash value of the insured property at the time coverage is placed and at each renewal date. Liability coverage, including medical payments insurance, is also required. There is also a requirement that the condo association promptly repair any portion of the common property that is damaged or destroyed and to use any insurance proceeds from a damage claim for those repairs.
 
    Georgia Directive 09-P&C-1 notes that some federal programs require proof that property damage isn’t covered by insurance before a property owner can claim a benefit under the program. In light of the recent flooding in that state, insurers are being told not to consider those flood and flood-related claims as a “claim against a policy” unless the policy provides some coverage and a claim is paid. Insurers must tell agents, adjusters, and independent adjusters about the directive. Commissioner John Oxendine also said in a press release that property/casualty insurers shouldn’t penalize policyholders who have had flood damage. “I don’t want insurers nonrenewing policyholders whose homes were damaged by flooding, especially when claims reporting is mandated by FEMA for a consumer to be eligible for benefits,” he said. Under Georgia law, insurance companies cannot nonrenew homeowner coverage for two or fewer claims within 36 months, provided those claims aren’t attributable to negligent or intentional acts of the insured.
 
 
Rates, Forms & Filings       
    Colorado has again updated:
    • Bulletin 4.18, Requirements for the Filing of Rates, Rules and Forms for Life, Accident and Health Carriers; and
    • Bulletin 5.18, Requirements for the Filing of Rates, Rules, Lost Cost and Forms for Property and Casualty Carriers.
We reported last week that the state had issued the same bulletins (ICI, Oct. 26, 2009). Those were dated Oct. 24; the new updates are dated Oct. 29.
 
    Minnesota has updated its rating guides for Medicare Supplement and Medicare Select insurance.
 
    New Jersey Bulletin 09-34 gives supplemental guidance for using SERFF. It says life insurance companies and fraternal benefit societies can start using SERFF Nov. 1. The state said earlier, in Bulletin 09-05, that it will mandate the user of SERFF for life and health rate and form filings starting Jan. 1, 2010, and that guidance still stands. The latest bulletin also provides procedures for expediting the review process. The state already requires property/casualty companies to use SERFF.
 
    New York has updated:
    • its online site for Medicare Supplement information and premium rates; and
    • its online site for property/casualty rates & forms filing review standards checklists and compliance questionnaires.
 
 
State Regulation of Insurance
    Arizona Gov. Janice Brewer has sent an Oct. 16 memorandum to all state agencies that keeps a rule-making moratorium in effect for the remainder of the fiscal year. The memo extends her moratorium until Nov. 24, and state session law extends it further through June 30, 2010. 
 
    Connecticut has launched an online system to give consumers an easier and more convenient way to submit complaints to the Insurance Department. It provides step-by-step guidance and even allows citizens to attach documents to support their case. The Insurance Department said in a press release that it will continue to accept complaints by mail, fax, phone or email message.
 
    Iowa is taking action on two rules:
    • Proposed Rule 191-13 would set out the requirements, procedures and fees relating to how prohibited persons can obtain the required consent of the Iowa insurance commissioner. The new chapter is effective Dec. 23, and has a Jan. 1, 2010 compliance date.
    • It wants to rescind Rule 191-58, Third-Party Administrators, and adopt a new chapter with the same title to govern the regulation of those entities.
 
 
(RR&B is produced with the assistance of The CLEAR Report and the Coalition Against Insurance Fraud.)
 
 
Copyright 2009 ProBusiness Publishing LLC

Publish date Nov 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.