Life and Health News
We are celebrating over 25 years of providing selected items of current interest to our clients and friends. The items contained in this newsletter are derived from bulletins, regulations and legislative activity affecting the insurance industry. Please feel free to share this newsletter with others that may be interested. Contact our office for further details about any of the items contained in the newsletter.
AGENT / PRODUCER LICENSING AND APPOINTMENT
District of Columbia issued a Notice of Final Rule Making advising fingerprints that are part of license applications will be used to obtain local and national criminal background checks. 26B DCMR 108 Dated 09-20-2013
Puerto Rico issued a Circular Letter advising an electronic registry through the NIPR will be available for DOI licensees to register their change of address as well as appointment and cancellation of appointment of their authorized representatives. This will be the only means to carry out these changes. Circular Letter CC-2013-1844-SR
Wisconsin issued a bulletin pertaining to resident and nonresident annual appointment billing. Invoices for filing the required annual initial and renewal appointment fee will be mailed shortly after January 1, 2014. All payments must be submitted by Electronic Funds Transfer (EFT) on its Web site at oci.wi.gov. Bulletin dated December 10, 2013
ANNUAL AND QUARTERLY REPORTING
Connecticut issued a bulletin to all insurance and fraternal companies regarding the 2013 annual statement. It provides filing requirements and deadlines for filing the annual report. Bulletin Number FS-4-13
Washington issued a bulletin adding the 2012 individual annuity reserving (2012 IAR) table among the mortality tables for use in determine the minimum standard of valuation for annuity and pure endowment contracts. 284-74-020 Dated 10-23-2013
Idaho issued a bulletin stating how carriers and producers can satisfy the buyer's guide statutory requirement for annuity sales. Bulletin 13-06
Indiana issued a bulletin requesting insurers to observe a 60 day moratorium for cancellation of any policy and a suspension of penalties for late payments in effect for a policyholder directly affected by the disaster events residing in the impacted areas. Bulletin 201
Oregon sent an email advising insurers of an update to filing deadlines for dental form filings and dental binder filings. Dental form filings for 2015 are due 4/30/2014. Dental binder filings for 2015 are due 5/31/2014. Email from Department
DISASTER OR CATASTROPHIC EVENT
Illinois provided exemptions for consumers in disaster areas for thirteen counties. It among other things, includes moratorium on cancellations and nonrenewal, insurance-related time-period extensions and exceptions to policy or contract requirements or rating or underwriting rules. Insurers should post on their websites all actions taken to implement the requirements of this bulletin. Bulletin 2013-18
Alaska amended its order exempting single out-of-state employer documents from the filing requirements of AS 21.42.120 for life, annuity, and health insurance. It provides the SERFF TOI and filing type for the filing that must be submitted regarding these exemptions no later than June 30th of each year, as well as the language needed for the certification. Order R13-01 (As Amended)
Utah issued a bulletin that provide guidance on the specific documents and information that must be included in the submission of the Regulatory Asset Adequacy Issues Summary (RAAIS). Bulletin 2013-9
Arizona issued a bulletin advising that effective 1/1/2014 the Department will exercise its authority to review certain health insurance rate increases in the small group health insurance market. Bulletin 2013-4
Colorado issued a bulletin to provide carriers with guidance needed to submit reasonable modifications to existing health benefit plans. This guidance includes an example of the timeline, the elements required for a submission, and a sample schedule for Division review. Bulletin B-4.65
New York enacted legislation for group or blanket accident and health insurance policies allowing licensed agents and insurance brokers to develop, implement, and administer wellness programs without charging a service fee. Senate Bill 2894
LONG-TERM CARE INSURANCE
Washington issued a bulletin advising that within 30 days of receipt of a claim for benefits under a long-term care policy or certificate, an insurer must pay the claim if it is a clean claim; or send a written notice acknowledging the date of receipt of the claim and state the claim is denied and the reason or outline the additional information that is needed. 284-83-325 Date 9-18-2013
MARRIAGE EQUALITY/CIVIL UNIONS / DOMESTIC PARTNERS
Illinois amended and enacted legislation regarding the definition and recognition of marriage and civil unions. Senate Bill 10
ORSA: OWN RISK AND SOLVENCY ASSESSMENT
Illinois issued a bulletin to advise of changes to Article VIII 1/2. Certain holding companies will be required to file an Enterprise Risk Report effective 7/1/2014. Bulletin 2013-17
PATIENT PROTECTION AND AFFORDABLE CARE ACT
Alaska issued a bulletin reminding all insurance companies and health maintenance organizations issuing non-grandfathered policies or plans that, barring amendments to the Patient Protection and Affordable Care Act (PPACA) or its implementing regulations, policies and plans issued or renewed on or after January 1, 2014 must be in compliance with the PPACA requirements. Bulletin B 13-09
Colorado issued a bulletin regarding it's position on President Obama’s recent announcement that the federal government will allow consumers to keep and renew their current policies, into and beyond 2014 by delaying the enforcement of ACA market reforms in 2014 for plans that are currently in effect. Bulletin No. B-4.66
Idaho issued a bulletin allowing the renewal of certain non-grandfathered individual and small employer health insurance policies in existence on October 1, 2013. Bulletin 13-05
Illinois issued a bulletin providing guidance for renewals of existing health plans for 2014. It gives health insurers the choice to renew existing health insurance policies with current policyholders in 2014 and provides the guidelines. Bulletin CB 2013-19
Louisiana provided guidance and procedures health insurer must follow to provide transitional relief during the Affordable Care Act transition. Bulletin 2013-07
Maryland issued a bulletin that provide clarification on the rating methodology options available to calculate premiums for employees covered under a non-grandfathered health plan through their small employer. Bulletin 13-31
Michigan issued a bulletin requiring insurers to advise insureds that fixed indemnity/hospital indemnity plans do not satisfy the minimum essential coverage requirement of the federal Affordable Care Act. Bulletin 2013-20-INS
Missouri issued a bulletin providing procedural guidance to implement the transitional policy to extend coverage for individuals and small businesses with policies in effect on 10/1/2013. Bulletin 13-07
Montana issued a memorandum stating that the decision to renew 2013 health plans, pursuant to the President’s offer, is effectively left up to the health insurers. It provides Montana's law regarding 2013 renewals and potential state legal issues. Memorandum Dated November 25, 2013
Montana provided clarification to health insurers regarding what constitutes “reasonable assurance” as it relates to pediatric dental coverage and prohibiting "forced" or "automatic enrollment." Memorandum Dated November 13
Nebraska issued a bulletin stating that despite the lack of enforcement by the federal government, it is the opinion of the Department that individual and small group health insurance policies issued or renewed on or after January 1, 2014, must comply with the provisions outlined in the Affordable Care Act. Notice Dated November 22, 2013
Nevada stated that Non-ACA Compliant plans renewed on or before 12/31/2013 can remain in effect until their 2014 expiration. Statement dated November 27, 2013
New Hampshire issued a bulletin pertaining to renewals of non-Affordable Care Act compliant policies in 2014. Bulletin INS 13-037-AB
New Jersey amended its individual health plan requirements for compliance with the Affordable Care Act, which among other things, adds definitions, revises requirements and limitations for certain cost-sharing, deductibles, and out-of-pocket charges, revises and add provisions relating to policy replacements and enrollment periods. NJAC 11:20+
Ohio issued a bulletin concerning the extension of health insurance plans that are not compliant with the federal Affordable Care Act. Insurers wishing to extend coverage must follow the CCIIO's transitional policy. Bulletin 2013-01
Puerto Rico issued a ruling allowing the renewal of certain health insurance plans in 2014. The extended period is only applicable to individual and small group policies whose policy year or coverage begin before 10/1/2013. Ruling CN-2013-161-D
South Dakota issued a bulletin stating that carriers renewing health insurance coverage in the individual and small group market for a policy year starting between 1/1/2014 and 10/1/2014 will not be considered out of compliance with market reforms. Carriers may use already filed and approved rates or carriers may file an off-renewal increase to adjust for these policies. Bulletin 13-05
Wisconsin issued a bulletin that speaks to conditions under which insurers may renew non-ACA compliant individual and small group health insurance plans. It also deals with the manner by which rate revisions for 2014 renewals should be submitted. Bulletin dated November 21, 2013
Connecticut issued a bulletin to all accredited reinsurers regarding 2013 and 2014 financial filing requirements. Certificates of accreditation will be automatically renewed on June I, 2014, provided the company maintains the standards, and satisfies the annual filing requirements. Bulletin Number FS-4AR-13
Texas issued a bulletin to HMO's and Preferred Provider Carriers that requires a mandatory data call to determine carriers’ compliance with prompt pay requirements. Bulletin #B-0026-13
RESERVE VALUATION AND NONFORFEITURE RATES
Minnesota amended its statute to revise factors that insurers must use when valuing life insurance policies for reserve calculation purposes. 2747.0030 dated 8-19-2013
Ohio issued a bulletin advising all companies writing stop loss coverage must file their policy forms with the Department for prior approval. Bulletin LH 2013-03
Big Product Development Plans for 2014? Think First Consulting!
We know that a company’s product development plans can be bigger than the staff needed to bring products to market. Let our experienced staff help you meet your goals. Our co-sourcing approach to insurance product drafting and filing allows you to choose which parts of the project to outsource and which parts to tackle internally. We can assist you with any part of the product development project, from generic policy drafting to development of state variations in all or selected jurisdictions.
ASK ME ABOUT CO-SOURCING
Perhaps you have seen a First Consulting Associate with a button that read this and wondered what that was all about but never asked. Well, it is not too late.
No one is the same as you. Your Company operates with its own special demands and conditions. You face unique regulatory and compliance challenges. When you need assistance, don’t outsource and give-up control to someone else or get standardized “cookie-cutter” solutions.
First Consulting & Administration, Inc. provides unique answers to state insurance regulatory and compliance requirements. We provide customized support.
We call it Co-Sourcing.
Learn more about Co-Sourcing.
We Co-Source the drafting and filing of products including all insurance lines. First Consulting also assists in a wide range of services including product development, SERFF filings, business expansion, TPA licensing, advertising review and ORSA consulting. First Consulting's clients range from multi-national insurers to single state operations.
Get more information about First Consulting and our services.
Contact John Palmer and discover how Co-Sourcing can benefit you.