Annual Statements & Financial Matters
    Kansas has adopted policy and procedure for companies deemed to be in hazardous financial condition, dated Aug. 4.
 
    There have been reports that New Jersey has approved NJAC 11:19-1, which has new rules for annual and quarterly financial statement submissions. But no approval had been posted to the Insurance Department or administrative code Web sites at press time.
 
    A New York Nov. 2 letter addresses special considerations relating to Dec. 31 reserves and other solvency issues. It focuses on actuarial opinions and memorandums and other solvency issues and:
    • provides instructions about filing;
    • describes additional tests and documentation standards that the Insurance Department wants to see; and
    • tells companies how the department views adequacy in preparation for discussions that may occur subsequent to filing the opinion.
 
 
Automobile Insurance
    Kentucky Advisory Opinion 2009-01 discusses a change in state law that impacts when an insurance company must obtain a salvage title. HB 309 amended KRS 186A.520 to provide a means to allow the exclusion of airbag reinstallation costs from the total estimated repair cost when determining whether a vehicle would be subject to salvage titling. Those airbag-related costs include not only the cost of the airbag but also any component parts, modules, sensors and similar parts, as well as the labor cost involved to return the airbag to a proper functioning safety device. But, if a salvage title is obtained, those excluded airbag reinstallation costs must be included in the total claim amount on both first- and third-party claims.
 
    Nevada had amended NAC 690B.030 dealing with automobile insurance cards.
 
    New York has repealed and issued Regulation 153 to provide guidance for the flexible rating system of automobile insurance that went into effect Jan. 1. The regulation had previously been promulgated on an emergency basis Dec. 24, 2008, and again March 16, June 9 and September 3.
 
    Rhode Island has adopted Regulation 25, Automobile Insurance Rating, effective Nov. 23.
 
 
Health Insurance
    New York has posted:
    • new mandated benefits for individual direct-pay HMO contracts; and
    • new premium rates, by county, for HMO standard individual health plans.
 
    Oregon Bulletin 2009-10 provides additional information about a footnote in Bulletin 2009-09. Both bulletins deal with the health insurance premium assessment required by HB 2116, which went into effect in September. The Insurance Department says that recent proposed legislation would require health insurers to pay the assessment only on policies delivered or issued for delivery in Oregon. Until there is a change in the law, however, the state says it will enforce the law as written. 
 
    Washington WAC 284-155 sets up the application process to license a discount health plan organization and also establish reporting and recordkeeping requirements.
 
 
Insurance Fraud
    The Pennsylvania legislature’s planned top-to-bottom review of its fraud laws is a welcome move, the Coalition Against Insurance Fraud told the House insurance committee in testimony last week. “We applaud the committee for this review. States should regularly see if their insurance fraud laws are working and, if necessary, what changes would help strengthen the state’s anti-fraud effort and protect its citizens,” said the coalition’s Howard Goldblatt. The committee is considering several bills, and invited the coalition to testify in Pittsburgh. Strengthening state review of the licenses of providers convicted of insurance fraud is a good starting point. “There are enough honest doctors that we don’t need crooks practicing medicine,” Goldblatt said. The committee is expected to hold hearings about a variety of fraud issues, then pursue legislation during the 2010 session.
 
 
Life Insurance
    Hawai'i Memorandum 2009-2A designates HRS 431:5-307 and administrative rule 16-171 as the mortality tables and discount rates to be used in the state.
 
    The Maryland Insurance Administration has developed a mandated benefit chart showing all benefits must be provided in the individual and non-small employer market. The directive isn’t dated, but was distributed by email Nov. 6.
 
 
Long-Term Care Insurance
    Iowa IAC 191-39.6 thru 72.2 establishes the state’s long-term care partnership program. Among the new rules are training requirements for producers selling LTC policies. The rules go into effect Dec. 12.
 
    New Jersey is proposing repeal and adoption of rules governing advertising requirements for long-term care insurance. Comments are due by Jan. 1.
 
 
Medicare Supplement Insurance
    Colorado is conducting a survey to obtain the most current information about Medigap plans available in the state. This information will be used in a publication that will be available to Colorado consumers. All companies writing Medicare Supplement insurance must complete the survey by Dec. 4.
 
    Nevada has adopted amendments to NAC 687B dealing with Medicare supplement insurance.
 
 
Producers
    Florida is advising that computer upgrades will keep all producer systems offline Nov. 11-15. The includes the producer MyProfile, eAppoint and licensee search. Producers will temporarily be unable to apply for licensure, submit address or appointment changes, review licensee details, submit or search prelicensing and continuing education information or perform related licensing functions. Systems will come back online Nov. 16, but applications for licensure submitted after that date may take up to 30 business days to be processed.
 
    Illinois CB 2009-Set Bulletin 2009-07 advises about new procedures and guidelines for new producer licensing. HB 70, who goes into effect Jan. 1, 2010, requires producers complete 24 hours of continuing education, including three hours of ethics. A rule that will be proposed soon will impact producers whose licenses renew between Jan. 1 and Feb. 28, 2010 . They will have to fulfill the ethics requirements by registering for three hours of ethics continuing education training by Dec. 31 and successfully complete it by Feb. 28, 2010.
 
    New Jersey is proposing changes to NJAC 11:17A-4.2 that would require a producer to witness the signatures of applicants only when the application is signed after a face-to-face meeting between the producer and the client, and only when required by the insurer. Currently, an insurance producer who takes an application must witness the signature before submitting the application to the insurer, unless the insurer waives the requirements. Comments about the proposed change are due by Jan. 1.
 
    A North Carolina producer notice dated Oct. 29 says the state will, by early next year, stop using Social Security numbers as a unique identifier and start using the National Producer Number.
 
 
Property/Casualty Insurance
    Louisiana Bulletin 09-08 amends and reissues the disclosure forms that property/casualty companies must use when issuing, delivering or renewing homeowner or fire/commercial insurance policies.
 
    North Dakota Bulletin 2009-4 has guidance for selling crop and hail insurance in 2010.
 
    Rhode Island has adopted Regulation 110, Residential Property Insurance, with a Nov. 23 effective date.
 
    South Carolina Bulletin 2009-21 is the third in a series of bulletins that discusses new requirements for initial and renewal licensing requirements for premium services companies. It also addresses the filing of annual financial reports for those companies. 
 
 
Rates, Forms & Filings
    Arkansas has rescinded, superseded and replaced Bulletin 6-87 and Bulletin 11-88, both of which deal with Act 197 passed in 1987 by the state legislature. Both have been replaced by Bulletin 15-2009 in order to update the Insurance Department’s contact information. As stated in Bulletin 4-87, Act 197 requires that life, disability and property/casualty policies tell policyholders how to contact the Insurance Department, the company’s policyholder service department and the producer. That information can continue to be provided by a sticker or as a separate form, and Bulletin 15-2009 has a suggested format for the notice. Carriers can continue to use their own design if the content is substantially the same.
 
    Colorado Bulletin B-5.18 has requirements for filing property/casualty rates, rules, loss costs and forms. It went into effect Oct. 29.


    Ohio Bulletin 2009-11 requires the use of SERFF starting Dec. 31.
 
    A Rhode Island notice tells of the state’s intent to revise Regulation 68, Commutation Plans. The change would allow the Insurance Department to accept a filing in which a modification or waiver has been made for good cause. Submit comments by Dec. 10.
 
 
State Regulation of Insurance
    A California Nov. 4 notice has the state’s Schedule of Examination Fees for Fiscal Year 2009-10.
 
    Nevada has adopted several rules:
    • NAC 694C, Captive Insurer Conflict of Interest and Disclosure; and
    • NAC 694C.280, Officers and Directors of Captive Insurers.
 
    Ohio Bulletin 2009-12 requires insurers or producers to report any loss of control of personal information when:
    • it involves an individual’s name, and Social Security number or driver’s license number or a bank/credit/debit card or account number; and
    • it affects more than 250 Ohio residents.
    Insurers are responsible for educating their appointed agents about their duty to report any loss of control.
 
    Rhode Island is repealing four rules, effective Nov. 23:
    • Regulation 46, Medicare Supplement Insurance Minimum Standards;
    • Regulation 47, Advertisement of Medicare Supplement Insurance;
    • Regulation 57, Multiple Employer Welfare Arrangements; and
    • Regulation 82, Small Employer Health Insurance Availability Regulation.
 
    Texas Bulletin B-0044-09 tells of recent legislation of interest to insurance companies.
 
 
(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 09 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.