Annual Statements & Financial Matters
    Louisiana Regulation 98 discusses annual financial reporting. It requires:
    • an annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public accountants;
    • the communication of internal control related matters noted in an audit; and
    • a management’s report of internal control over financial reporting.
 
 
Automobile Insurance
    Kentucky Advisory Opinion 2009-01 addresses the use of airbag reinstallation costs in determining if a salvage title is required. A state law that went into effect Oct. 1 permits motor vehicle insurers to exclude such costs under certain circumstances. The opinion discusses that, but notes that nothing in HB 309 is intended to discharge the motor vehicle insurer’s obligation to include the cost of the airbag reinstallation costs and collateral interior damage in regard to the overall settlement of a claim. Also noted: Insurers generally consider a vehicle to be an economic total loss when the estimated cost of repair, plus loss of use and diminution of value for third-party claims, equals or exceeds the actual cash value of the vehicle less salvage value. That calculation has not changed.
 
    Massachusetts Bulletin 2009-14 has guidelines for truth in advertising and marketing for personal auto insurance in the new managed competition system for that line of insurance. It also tells auto insurers to maintain files of all advertising for later regulatory review.
 
 
Health Insurance
    South Dakota has adopted three rules for health insurers (all are effective Dec. 9):
    • Rule 20:06:33:04, Centers of Excellence – Access Plans;
    • Rule 20:06:39, Individual Plans, Michelle’s Law; and
    • Rule 20:06:40, Employer Plans, Michelle’s Law.
 
 
Insurance Fraud
    Fraud fighters would have more time to investigate suspicious Medicare claims under a bill introduced in the U.S. Senate by Sen. Chuck Grassley. S. 2774 would extend the time period required for paying Medicare bills that appear to involve fraud, waste or abuse. Current federal law requires prompt payment of Medicare bills, but that prevents more scams from being caught and thus increases needless government payouts, the Coalition Against Insurance Fraud says. This bill also might also be raised as an amendment to the Senate’s health care reform bill.
 
 
Life Insurance & Annuities
    Michigan Bulletin 2009-15-OFIR tells how the state will process license applications for the variable life/variable annuity line of authority.
 
    Rhode Island SB 229 will allow life insurance policyholders to sell their policies after two years. It also targets stranger-originated life insurance transactions known to victimize senior citizens. The bill takes effect in July 2010.
 
    Louisiana Regulation 58 establishes the requirements for viatical settlements, including standards for licensing life and annuity insurance producers and for the filing of the annual reports.
 
 
Long-Term Care Insurance
    Maine has issued three bulletins dealing with long-term care insurance:
    • Bulletin 361, Announcement of Maine’s Long-Term Care Partnership Program;
    • Bulletin 362, Implementation of the Maine Long-Term Care Partnership Program; and
    • Bulletin 363, Inflation Protection Requirements for Long-Term Care Partnership Policies.
 
 
Producers
    A Michigan Nov. 3 memorandum gives details about converting producers and solicitors continuing education review dates to a date based on the agent’s birth month and year.
 
    New York Proposed Regulation 194 would require greater transparency in disclosures of producer compensation.
 
    Oregon is proposing several rule changes impacting producers and adjusters that would:
    • charge a fee for the actual cost of a criminal records check;
    • provide consistent expiration time frames for licenses;
    • clarify that the exemption to the adjuster licensing examination applies only to nonresident adjuster licensing;
    • designate crop insurance as a distinct class of insurance for the purpose of licensing crop adjusters;
    • require that, starting Feb. 1, 2011, applicants must pass an examination to become crop adjusters; and
    • require crop adjusters to furnish evidence of current Federal Crop Insurance Corporation certification to renew their license.
    Comments will be accepted through Dec. 28.
 
    A Utah notice tells of plans to hold a Dec. 8 hearing to hear comments about its proposal to increase fees for individual and agency licenses by $10.
 
 
State Regulation of Insurance
    Washington WAC 284-16-600 to -650 establishes the process for the administrative supervision of an insurer or carrier, the requirements for the plan of correction an insurer or carrier must prepare and follow when it is subject to an administrative supervision order and the procedures for the administrative supervisor.
 
 
Surplus Lines
    Connecticut Bulletin SL-1 says the state is rescinding Bulletins EL-1 through EL-6 (Affidavits and Tax information) and Bulletins SL-15-96 through SL-15-99 (Exportable Lists) because they have become obsolete.
 
 
 (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 23 2009
Prior Issues

Reprinted with permission from Insurance Compliance Insight.
Copyright © 2009 ProBusiness Publishing LLC
Licensed from ProBusiness Publishing LLC. All rights reserved.