Life and Health News
March 2019
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
Ohio has repealed rule OAC 3901-3-11 which set requirements for statements of actuarial opinion and for memoranda in support as well as rules applicable to the appointment of an appointed actuary. OAC 3901-3-11
CERTIFICATE OF AUTHORITY FILINGS
California issued a notice regarding renewal of certificate of authority for firefighter, police officer, or peace officer benefit and relief associations. The notice states that the Insurance Commissioner may revoke the Certificate of Authority for an Association that fails to properly renew. Notice dated February 4, 2019
CYBERSECURITY
New York issued a press release reminding covered entities that they must be in full compliance with the Cybersecurity Regulation by 3/1/19. The press release notes that a copy of the cybersecurity regulation and a set of frequently asked questions can be found on the DFS cybersecurity portal: https://myportal.dfs.ny.gov/web/cybersecurity/. Press Release dated January 31, 2019
DEATH BENEFITS
Nebraska announced that the interest rate to be paid on death proceeds not paid within 30 days of receipt of proof of death is 4.396%, effective 10/18/18. Notice dated 1-25-2019
DISCRIMINATION
New York has amended the civil rights law and the education law in relation to the prohibition of discrimination based on gender identity or expression. SB 1047
FILING REQUIREMENTS / PROCEDURES
Kentucky released a bulletin regarding form filings containing various references to arbitration or other procedures for out-of-court dispute resolution. The Department will reject insurance policy forms that require arbitration of a dispute as misleading. Surety contracts are specifically exempt from this provision. Bulletin 2019-1
FINANCIAL EXAMINATIONS
Texas amended its administrative code regarding the appeal of examination reports and examination frequency. These amendments are considered necessary to clarify the examination appeal procedures and allow each entity that the Department examines to appeal those findings when there is not another appeals process that is applicable. 28 TAC 1.7.A.7.83
HEALTH INSURANCE / HEALTH RATES
Alaska issued a bulletin providing information regarding coverage through Association Health Plans. The bulletin reminds insurers that the US Department of Labor published a final rule, and there are areas where Alaska law conflicts with this federal rule. The Alaska DOI is working to harmonize any conflicts. The bulletin provides instructions for accessing an informational chart including summaries and guidance. Bulletin B 19-02
Virginia issued an Administrative Letter regarding requirements applicable to short-term limited-duration insurance coverage. Administrative Letter 2018-08 (revised)
HEALTH MAINTENANCE ORGANIZATIONS
Alabama issued a bulletin regarding association health plans for Health Maintenance Organizations. Bulletin 2019-01
HOLDING COMPANIES
The Virgin Islands issued a bulletin regarding instructions and forms necessary for compliance with the "Virgin Islands Insurance Holding Company System Regulatory Act". Bulletin 2019-01
MEDICARE SUPPLEMENT INSURANCE
Louisiana amended its Medicare Supplemental Insurance Minimum Standards regulation to be uniform with the Medicare Access and CHIP Reauthorization Act of 2015. LAC 37:XIII.560
Maine amended several sections of its Medicare Supplement Insurance Rule. Insurance Rule Ch. 275 s 4, 9.1, 9.2, 11, 12, 15, 17, 18, 26
Massachusetts issued a bulletin regarding an addendum to "Guide to Health Insurance for People with Medicare". Bulletin 2019-02
The Centers for Medicare and Medicaid Services issued a notice recognizing the National Dialysis Accreditation Commission (NDAC) as a national accrediting organization for an end stage renal disease (ESRD) facility accreditation program. CMS Notice dated February 5, 2019
MISCELLANEOUS
Massachusetts released a bulletin to provide guidance on the underwriting process and how carriers consider information about an applicant obtaining certain medications that are not relevant to a potential applicant’s health, and other medications prescribed to prevent certain illnesses or diseases. Bulletin 2019-01
MISCELLANEOUS HEALTH / ACCIDENT
Arkansas has passed a new bill to amend the state code regarding the testing of newborn infants. The amendment states that any health benefit plan that is offered, issued, or renewed in the state shall provide coverage for newborn screening for spinal muscular atrophy by a healthcare professional on or after 1/1/2020. HB 1074
RESERVE VALUATION
The California DOI has released a bulletin regarding the annual assessment amount for principle-based reserving. Bulletin 2019-1
TRADE PRACTICES
Arizona issued a bulletin reminding insurers of requirements prohibiting premium rebates and unfair discrimination in the transaction of life or disability insurance. Bulletin 2019-01
The New York State Department of Financial Services has issued guidance on Whistleblower Programs. The guidance applies to all regulated institutions regardless of industry, size, or number of employees. Whistleblower Guidance of January 7, 2019