Life and Health News
July 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!
ANNUITIES / ANNUITY CONTRACTS
Florida amended its Suitability in Annuity Transactions statute requiring agents to act in the best interest of the consumer when recommending an annuity. The act further requires insurers to establish a system of supervision to oversee recommendations. 627.4554
Kansas adopted its "policy and procedure regarding suitability in annuity transactions" effective 1-1-2024. This is based on the most recent NAIC Model. 40-1-53
Louisiana enacted legislation specifying that the commissioner will adopt standards for the sale of annuity products. The legislation also directs that the commissioner may require producers to complete required training to sell annuity products. HB 262
Oregon enacted legislation requiring a producer to act in the consumer's best interest in the recommendation of an annuity and to provide certain disclosures. SB 536
Wyoming's Insurance Department informed carriers, producers and continuing education providers of training requirements required by the annuity best interest law. Memorandum 05-2023
CLAIMS / CLAIMS ISSUES
Maine enacted legislation requiring health insurance companies to allow providers the option for electronic payment of claims. HP 815
CONFIDENTIALITY / PRIVACY
Connecticut approved a bill amending its consumer protection laws, including the do-not-call list. SB 1058
Montana adopted the Consumer Data Privacy Act, identifying consumer privacy rights and requirements for controllers who hold that data. SB 384
Nevada passed a Health Data Privacy Law. SB 370
Vermont revised its regulation on Privacy of Consumer Financial and Health Information to update how annual notices are provided to be consistent with federal law. Regulation IH-2001-01
CYBERSECURITY
Pennsylvania enacted the Insurance Data Security Law. Insurers are required to conduct a risk assessment of threats, information security systems, data that could be compromised and develop a written information security program. Insurers must notify the commissioner within 5 business days of certain security events. HB 739
DENTAL INSURANCE
Arizona revised its statutes to require annual reporting, beginning July 1, 2024, of loss ratios for the previous year. The report shall be submitted each year by August 1st and include combined group and individual loss ratio percentages. HB 2010
Colorado enacted legislation affecting dental insurance including the requirement that rates not be excessive, inadequate, or unfairly discriminatory. Insurers will be required to make loss ratio filings each year, and to issue plan coverage cards. SB 179
Nevada enacted a law that presumes a dental premium rate is excessive unless it has a loss ratio of 75%. SB 393
DISASTER PREPAREDNESS
New York's Superintendent of Financial Services notified all insurance companies of the standards expected in planning and responding to disasters that could impact their ability to continue doing business and servicing their insureds. Circular Letter 2023-5
DISCRIMINATION
Rhode Island passed a law making it unfair discrimination for an insurer to deny life, disability, or long-term care insurance to an individual on the basis they are a living organ donor. HB 5489, SB 1028
EXCEPTED BENEFITS
New Mexico changed the effective date of its Excepted Benefits Standards Rule from July 1, 2023, to January 1, 2024, to give insurers additional time to make required changes to be in compliance with the Rule. 13.10.34.5 NMAC
FRAUD / ANTI-FRAUD
California published a bulletin explaining how the department's SIU Compliance Program works, how insurers are selected for review and the timing of the process. SIU E Blast 2023-15
HEALTH INSURANCE - COMPREHENSIVE
Nevada passed a law requiring health care plans to cover imaging tests to screen for breast cancer and diagnostic imaging tests without cost-sharing with the insured. SB 330
Oklahoma enacted legislation concerning required coverage for biomarker testing under certain conditions. SB 513
HEALTH INSURANCE / HEALTH RATES
Louisiana enacted HB 41, requiring that occupational therapy services, provided via telehealth, be covered at the same level as services provided in person. HB 41
MISCELLANEOUS
Arkansas published a bulletin reminding insurance carriers of their obligation to release, upon request, documents to the Criminal Investigation Division. The Criminal Investigation Division has the authority to issue subpoenas for any information relating to fraudulent acts or related criminal violations. Bulletin 10-2023
Montana enacted legislation allowing the commissioner to grant a regulatory sandbox waiver, describing the criteria for approval and the framework for doing so. HB 836
New Mexico's Insurance Superintendent issued guidance to Multiple Employer Welfare Arrangements Registration for Employee Leasing Contractors until a new rule is promulgated. Bulletin 2023-017
Oregon revised its law relating to life insurance policies covering child support obligations. SB 806
OMNIBUS LEGISLATION
Nebraska passed an Omnibus law that establishes the Regulatory Sandbox Act to allow carriers to temporarily test innovative insurance products and services without being licensed or authorized under state law. The law also requires health plans to cover digital breast tomosynthesis breast exams, and certain colonoscopies as recommended by the U.S. LB 92
TRADE PRACTICES
Florida enacted amendments to its definition of unfair discrimination/unlawful rebates to exclude value added goods and services. A product or service may be considered "value-added" if it helps reduce risks and/or helps administer coverages, as defined in the law. SB 312
Vermont's Insurance Commissioner provided guidance to insurers regarding offering value-added products and services that are not considered as rebates and the requirement to file a description via SERFF. Bulletin 222 (Revised)
TRAVEL INSURANCE
Delaware adopted the Delaware Travel Insurance Act, including a framework for the marketing and administration of travel insurance. SB 62
UNCLAIMED PROPERTY
Nevada revised provisions of the Uniform Unclaimed Property Act. AB 55