Life and Health News
January 2024
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!
ACTUARIAL
Pennsylvania's Insurance Commissioner adopted the exemption standards specified in the January 1, 2024, Edition of the NAIC Valuation Manual. Notice 2023-19
The Texas Department of Insurance adopted the NAIC 2024 Valuation Manual. The changes include: (1) actuarial reporting, including company inflation assumptions; (2) revised hedge modeling for index credit hedging; and (3) update the require timing for companies to submit mortality experience data to allow for more timely creation of industry mortality tables. 28 TAC Sec. 3.9901
AGENT / PRODUCER LICENSING AND APPOINTMENT
California issued a notice advising that the state will offer insurance licensing examinations in Spanish, Simplified Chinese, Vietnamese, and Korean beginning 01/01/2024 and Tagalog beginning 07/01/2024. Notice Dated 12/01/2023
The Virgin Islands Insurance Department announced that it implemented new insurance continuing education and pre-licensing courses and requirements. Bulletin 2023-05
Wyoming's Department of Insurance notified insurance companies of the process for agent annual appointment renewals for 2024. Memorandum 12-2023
ANNUITIES / ANNUITY CONTRACTS
Utah revised its Suitability in Annuity Transactions Rule to clarify that all recommendations by agents and insurers must be in the best interest of the consumer. Agents and carriers cannot place their financial interest ahead of the consumers' interest in making a recommendation. The rule is effective July 1, 2024. Rule R590-230-1
CAPTIVES
Iowa enacted legislation pertaining to premium taxes on captive insurance companies. The bill updates the current tax year and a schedule of rates for upcoming years. SF 549
CERTIFICATE OF AUTHORITY FILINGS
Florida adopted procedures for the application for a certificate of authority for an insurance administrator or an Independent Professional Examiners. The rule also describes annual statement requirements. FAC Rule 690-197.001
Florida adopted rules for the procedures to apply for a certificate of authority as a prepaid limited service organization or a Discount Plan Organization. The rule also includes requirements for annual reporting. FAC 690-203.020
CONFIDENTIALITY / PRIVACY
Colorado issued a bulletin to clarify the applicability of Colorado Insurance Regulation 10-1-1 to annuities and group life insurance policies. The Department's interpretation is that this regulation is limited to individual life insurance policies. Its applicability may be expanded in the future. Regulation 10-1-1 is the Governance and Risk Management Framework for Life Insurers' Use of external Consumer Data and Information Sources. Bulletin B-10.002
DISASTER / CATASTROPHIC EVENT
Tennessee's Insurance Commissioner asks carriers to assist policyholders impacted by the December 9, 2023, devasting tornadoes. Carriers are to suspend cancellation or non-renewal of policies due to non-payment of premium for at least 60 days from the date of loss, allow payment plans, suspend penalties or interest charge due to inability to submit premium, and allow exceptions for proof of loss and underwriting among other requirements. Bulletin 23-06
EXCEPTED BENEFITS
Virginia's Bureau of Insurance promulgated a Rule Governing Accident and Sickness Excepted Benefits Policies and Short Term Limited Duration Insurance. It also issued guidance regarding acceptable wellness benefits. Forms and rates must comply with the guidance by May 1, 2024. 14 VAC 5-141, Notice dated September 21, 2023
FEE SCHEDULES
Michigan published an updated annual schedule of fees including licensing, application, and examination fees. Bulletin 2023-24-BT
HEALTH INSURANCE - COMPREHENSIVE
The Federal Independent Dispute Resolution Process Guidance for Disputing Parties issued in October 2023 has been updated as of December 2023. This relates to the Federal No Surprises Act. CMS Notice dated December 15, 2023
Massachusetts adopted changes to its regulation on determining what constitutes minimum creditable coverage, effective 12/22/2023. 956 CMR 5.03
Pennsylvania's Insurance Department reminds health insurance carriers of the requirement to file prior authorization and appeal process forms and that enforcement discretion will be used beginning on January 1, 2024. Notice 2023-18
HEALTH INSURANCE / HEALTH RATES
Colorado adopted regulations establishing procedures to be followed when individual and small group Colorado Option Standardized Plans fail to meet the premium rate reduction/network adequacy requirements. The procedures include requirements for notifications and public hearings, among other things. Amended Regulation 4-2-92
MISCELLANEOUS
Alaska revoked previous Bulletin B23-06, addressing staffing shortages, due to an improvement in pharmacy staffing. Bulletin B 23-07
Arkansas published a bulletin, giving guidance on what constitutes a "business day" in the Prior Authorization Transparency Act. For nonurgent services, two business days will be allowed. For urgent services, notice shall be given in one day. Bulletin 20-2023
Delaware's Insurance Department reminds all health insurance carriers of the assessment due under the Health Insurance Individual Market Stabilization Reinsurance Program. The fee is due by March 1, 2024. The assessment must be paid by any health insurance carrier that provides health insurance in the state. Bulletin 113
The Federal Department of the Treasury extended the report deadline for certain Beneficial Ownership Information reports required under the Financial Crimes Enforcement Network (FINCen). Entities created or registered in 2024 have 90 days rather than 30 days to report their creation or registration in order to have additional time to understand the new reporting obligation. 31 CFR Part 1010
New Mexico's Superintendent of Insurance announced that the Department's website is now fully functional. The Department's systems were temporarily disabled in response to a cyber security event in September 2023. Notice dated December 21, 2023
PHARMACY BENEFIT MANAGERS
Michigan published a bulletin notifying insurers of the procedures to be used by the department of insurance to license and regulate pharmacy benefit managers. Bulletin 2023-23-INS
New Mexico announced that the process for applying for and renewing a pharmacy benefit manager license has changed. New and renewal applications will no longer be filed in SERFF. They will be handled through the Company Licensing Bureau. Bulletin 2023-35
PREMIUM TAX
New Hampshire's Insurance Department published 2023 Premium Tax Instructions for Life, Accident and Health Insurance Companies. Notice dated November 27, 2023
REPORTS - ANNUAL / QUARTERLY STATEMENT
Utah's Insurance Department advised Fraternal, Health, and Life carriers that report accident and health business that they must file an additional report with their annual filing. This report is the Utah Accident & Health Survey and is updated for 2024. It is due April 1, 2024. Notice dated December 12, 2023
TRADE PRACTICES
Alabama adopted amendments to its rebating limitations, including raising the limit of allowable value from $15 to $100 (non-cash), per family. 482-1-088