Life and Health News
December 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!
AGENT / PRODUCER LICENSING AND APPOINTMENT
Kansas published notice of producer application fees for 2024. Notice of Application Fee Amounts 11-09-23
Wisconsin's Commissioner of Insurance announced the process and deadlines associated with agent appointment renewal invoices for 2023. Bulletin dated November 14, 2023
ANNUITIES / ANNUITY CONTRACTS
Washington adopted the NAIC Model Regulation concerning the best interest standard for annuities. WAC 284-17-265
CLAIMS / CLAIMS ISSUES
New Hampshire amended its Group Coordination of Benefits regulation. Regulation 1904.01
CYBERSECURITY
Missouri issued a bulletin providing companies with more detail concerning their obligations to report cybersecurity breaches to the department of insurance. Any security breach should be reported to the department within 10 days of becoming aware of the breach. The bulletin provides additional instructions for making the notification. Bulletin 23-04
New York amended its rule relating to cybersecurity requirements. 23 NYCRR 500.1
Vermont's Department of Financial Regulation provided guidance to regulated entities regarding its interpretation of the consumer notification requirements included in the Security Breach Notice Act. Bulletin 5
DISCRIMINATION
Michigan adopted a bill prohibiting an insurer from discriminating against an applicant for a long-term care policy, based solely upon the applicant's status as a living donor. SB 384
New York revised the statute of limitations for claims resulting from all unlawful discriminatory practices from one year to three years. SB 3255
ELECTRONIC TRANSACTIONS
California amended its Uniform Electronic Transactions Act to exempt certain transactions including authorization for release of information under the Confidentiality of Medical Information Act. The amendments also require the authorization to contain an expiration date or event, and limits the duration to one year or less. AB 1697
FILING REQUIREMENTS / PROCEDURES
Kentucky published a bulletin notifying companies of the electronic filing requirements for all financial documents, including annual statements, effective immediately. Bulletin 2023-05
New York provided guidance to carriers who write accident and health insurance, health maintenance organizations, prepaid health plans and others regarding filing and approval of forms and rates. Circular Letter 7 (2023)
HEALTH INSURANCE - COMPREHENSIVE
New Hampshire's Commissioner of Insurance issued a Bulletin to all health insurers relating to mental health services. Health insurers are directed to work with their contracted health care providers regarding correct billing codes to reduce denial rates for claims. Bulletin INS 23-038-AB
Texas enacted legislation relating to consumer protections against medical and health care billing by emergency medical services providers. SB 2476
LONG-TERM CARE INSURANCE
New York passed a law increasing the transparency in the approval process of long-term care premium rate increases. Additional notices from carriers and the insurance department to insureds are required. SB 2330
MISCELLANEOUS
California updated the Mental Health Services Act, renaming it the Behavioral Health Services Act and expanding services covered to include substance abuse disorders. The bill will go to statewide vote and, if passed, become effective 1-1-2025. SB 326
Colorado adopted a regulation to provide guidance needed to comply with its requirements for health benefit plan identification cards. It also provides guidance on the use of dental coverage plan identification cards. 4-2-29
District of Columbia adopted the Prior Authorization Reform Amendment Act of 2023. The act sets procedures for utilization review entities to follow, sets notice requirements and when a review may be required. B 124
Florida adopted amendments to statutes to amend the definition of "scrutinized company." The state Board of Administration will maintain a list of scrutinized companies with activities in Iran Terrorism Sectors. Domestic companies are required to annually file a list of companies in which they have investments which are on the Scrutinized Companies list. HB 5
Louisiana rescinded Bulletin 2022-01 regarding unintended tax consequences with Health Savings Accounts. The bulletin is no longer needed because Louisiana has amended its state statute to align with federal law. Bulletin 2022-01-R
Washington amended the rules relating to health care benefit manager registration and renewal fees. Rule 284-180-210
Washington's Insurance Commissioner clarified the address of record used for all notices, orders, and written communications and for communications with insurance producers. WAC 284-17-005
PHARMACY BENEFIT MANAGERS
Arkansas issued a bulletin reminding pharmacy benefits managers and insurers of prohibited practices, specifically the anti-claw back law. The department has received recent complaints regarding the practice. Bulletin 18-2023
New York adopted Pharmacy Benefit Manager Regulations relating to assessments, filings and other requirements for issuance and maintenance of a license, and reporting and record keeping requirements. Regulations 219, 223, 224 and 225
New York sent a letter to Pharmacy Benefit Managers licensed in New York informing them of two clarifications to the licensing application instructions sent on October 31, 2023. Letter dated November 10, 2023
REGULATORY REPORTING REQUIREMENTS
New York adopted the 2023 NAIC Accounting Practices and Procedures Manual. The manual is used in the preparation of quarterly and annual statements for 2023 filed in 2024. 11 NYCRR 83.2
RESERVE VALUATION
Colorado adopted amended regulations governing reserve financing arrangements for certain life insurance policies. The regulation applies to reinsurance policies ceding liabilities by any life insurance company domiciled in the state of Colorado. 4-1-16
TRADE PRACTICES
Illinois enacted amendments to the Consumer Fraud and Deceptive Business Practices Act, including required content and disclosures for postcards used to solicit contact from consumers. SB 1440
Michigan amended its law governing producer practices. An agent will be considered a fiduciary for all money received and held by the agent. Effective 5-5-2024, the act provides for additional duties when acting as a fiduciary in the handling of funds. HB 4376