Life and Health News
June 2023
Welcome to our latest newsletter! As a thought leader in the Insurance Industry for over 50 years we are always excited to share the latest sampling of insurance compliance related bulletins, regulations, and legislative activity. Please feel free to share this newsletter with others that may be interested. Contact Us with any questions on the items in this newsletter or with any other compliance related matter we can assist you with. Enjoy!
ADVERTISING / SALES & MARKETING
New Jersey revised its telemarketing law to require that a telemarketer disclose the name and telephone number of the person on whose behalf the call is being made. A telemarketer's website must disclose the mailing address of the telemarketer and any company on whose behalf the company is telemarketing. It must also be disclosed on written communication to a customer. SB 921
ANNUITIES / ANNUITY CONTRACTS
DC adopted rulemaking implementing the 2020 amendment to the NAIC Standard Nonforfeiture Law for Individual Annuities model. The interest rate used to calculate minimum nonforfeiture values is reduced from 1.00% to .15%. 26A DCMR 5100
West Virginia amended its regulation regarding suitability in annuity transactions. Agents are required to act in the best interest of a consumer and carriers must maintain a system to supervise annuity recommendations. Regulation 114-11B-1+
CERTIFICATE OF AUTHORITY FILINGS
Iowa updated legislation concerning permitted investments by life insurers. HF271
CLAIMS / CLAIMS ISSUES
Rhode Island enacted a law requiring carriers to determine if a person receiving any economic benefit from a life insurance policy owes past-due child support. SB 730
Tennessee amended its law relating to the administration of a small estate and the Small Estate Affidavit. HB 337
CONFIDENTIALITY / PRIVACY
California adopted the California Consumer Privacy Act Regulations. The regulations generally provide instructions and implementation guidance for the Consumer Privacy Rights Act. 11 CCR Sec 7000
Indiana adopted a new law addressing consumer data protection. New protections include the right of the consumer to confirm whether or not a business is processing the consumer's personal data, to obtain a copy or summary of the data and to delete data. The law also includes an opt-out right. SB 5
Washington passed the My Health My Data Act in an attempt to close the gap between HIPAA protections and the laws protecting the privacy and security of other consumer health care data. This law establishes consumer rights with regard to consumer health data. HB 1155
Wyoming updated its Rule regarding Privacy of Consumer Financial and Health Information. Among other things, it addresses changes to the privacy notice requirements of the Gramm-Leach-Bliley Act as amended by the FAST Act. Chapter 54 Section 1
DISCRIMINATION
Nevada passed a law that prohibits discrimination against a living organ donor in the underwriting of life insurance, annuities, or health insurance. SB 132
ELECTRONIC TRANSACTIONS
Alabama adopted legislation authorizing a Health Benefit Plan to provide communications to covered individuals by electronic means, when certain conditions are met, including consent, confirmation, and notification. SB 167
FILINGS: HEALTH
The Interstate Insurance Product Regulation Commission announced the adoption of two new standards: Individual disability income key person replacement and Individual disability income buy sell policy insurance. IIPRC Announcement
Massachusetts issued filing guidance regarding the Unified Rate Review Template (URRT) filings and clarified that two separate filings will be required. Filing Guidance Notice 2023-C
GROUP HEALTH
Alabama adopted the "Paid Family Leave Income Replacement Benefits Act." The act authorizes disability income insurers to offer fully-insured paid family leave benefits. HB141
GUARANTY ASSOCIATION
Colorado enacted amendments to the law governing the Colorado Life and Health Protection Association including changes to the priority of claims and the addition of HMO's to the association. HB 1303
Kentucky updated its Guaranty Association Act, including changes to the scope of the act and definitions. HB 210
HEALTH INSURANCE - COMPREHENSIVE
Georgia enacted the Consumer Access to Contracted Healthcare Act. The act, among other things, amends the "Surprise Billing Consumer Protection Act," sets standards for network plans and provides for telehealth services. The Act also provides for monitoring and reports. SB 20
Illinois' Insurance Department issued a bulletin to all companies writing Accident and Health and Managed Care Plans. The bulletin provides instructions and guidance for certification or recertification of individual and small group plans in the Marketplace. Bulletin 2023-05
IRS released the 2024 cost-of-living adjusted limits for health savings accounts (HSA), high deductible health plans (HDHP) and excepted benefit health reimbursement arrangements (EBHRA). Rev. Proc. 2023-23
New Mexico's Superintendent of insurance reminds carriers offering major medical plans to comply with the Women's Health and Cancer Rights Act of 1998 , a federal law, that adds to the basic benefits required by state law. The law requires coverage for breast reconstruction following mastectomy, surgery to produce a symmetrical appearance, prostheses, and treatment of physical complications of all stages of the mastectomy, including lymphedema. Bulletin 2023-8
Oregon's Insurance Division issued a bulletin outlining the expectations of covering COVID vaccines, testing, treatment, and telehealth due to the end of the federal COVID-19 public health emergency. Insurers are reminded that Medicare Supplement insurance has guaranteed issue rights for individuals ending Medicaid coverage under the Family First Coronavirus Recovery Act. Bulletin 2023-1
Washington amended a law to prohibit health carriers from assessing cost sharing for mammograms and supplemental and diagnostic breast examinations. For high deductible plans, the cost sharing must be at the minimum level necessary to preserve tax deductibility of the health savings account. SB 5396
Washington enacted a law that requires health carriers to cover hearing instruments, including bone conduction hearing devices. HB 1222
INDUCEMENTS
Iowa amended its anti-rebating law concerning "value-added" products and services. HF 316
MISCELLANEOUS
The IRS released a Memorandum from the Chief Counsel that confirms it is not a compliant practice for employers to allow employees to self-certify or use certain other "short cut" mechanisms to substantiate that their medical expenses qualify for reimbursement under a cafeteria plan. Memorandum 202317020 dated March 29, 2023
Utah passed a law that prohibits a governmental entity from using, enforcing, providing data for, or otherwise participating in the creation of a social credit score. A social credit score can discriminate against, advocate for, or cause adverse or preferential treatment of a person. HB 281
OMNIBUS LEGISLATION
Indiana enacted Omnibus Legislation, including legislation affecting producer continuing education, multiple employer welfare arrangements (MEWAs), anti-rebating, notice requirements for insureds becoming eligible for Medicare and electronic communications. HB 1329
Maine made multiple changes to its insurance code, including, among others, a change to the timeframe in which licensees must respond to inquiries from the insurance department, a revision to permissible insurer investments and annual health insurer filings. SP 28
PHARMACY BENEFIT MANAGERS
West Virginia amended its Pharmacy Benefit Manager regulations regarding licensing of a PBM and registration of a pharmacy auditing entity. Also revises reporting and activity standards. Regulation 114-99-1+
POLICY LANGUAGE
Colorado amended laws addressing translations of English language policies and the requirements to certify the accuracy of the translation. HB1004
REPORTS - DATA CALLS & OTHER REPORTS
Utah's Insurance Department informed insurers, consultants, and producers that effective January 1, 2024, carriers who issue a large employer plan (51+employees) must provide an annual report upon request, to the plan, producer, or consultant. The report discloses the plan's loss ratio and is proprietary. 31A-22-728
THIRD PARTY ADMINISTRATORS
Oklahoma amended its Third Party Administrator law. Among the changes is when a NAIC Biographical Affidavit is filed, it is no longer necessary to file a comprehensive review of the background report by an independent third-party NAIC approved vendor as required for domestic insurers. Reinstatement changes are covered. SB 553
TRADE PRACTICES
Maryland enacted the "Stop the Spam Calls Act" which places numerous restrictions on telephone solicitation and makes a violation of the act an unfair, abusive, or deceptive trade practice. HB 37
North Dakota revised its Unfair Trade Practices law to make the following unfair discrimination: refusing to insure, charging a different rate due to the risk's environmental, social and governance criteria; diversity, equity and inclusion policies, political or ideological factors, unless the refusal or different rate is the result of sound underwriting and actuarial principles related to actual or reasonably anticipated loss experience. HB 1429