Life and Health News
May 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 CONTINUING EDUCATION
Mississippi passed an insurance producer licensing law that excludes an individual who is 65 years old and has been licensed continuously for 25 years, from completing continuing education requirements. HB 1084
AGENT / PRODUCER LICENSING AND APPOINTMENT
California issued a reminder to licensees regarding the annual requirement to update changes in licensing information. Notice Dated March 29, 2023
ANNUITIES / ANNUITY CONTRACTS
Tennessee's Insurance Commissioner issued a bulletin to clarify the rule regarding suitability in annuity transactions that will go into effect on January 1, 2024. Bulletin 23-02
Washington enacted the best interest standard for annuity transactions effective January 1, 2024. HB 1120
CLAIMS / CLAIMS ISSUES
Maryland amended its requirements for notice of an adverse decision and made changes to the process a health insurer must follow. SB 724
CONFIDENTIALITY / PRIVACY
Iowa enacted legislation creating new protections on consumer data privacy, including duties to protect privacy, exemptions for certain data, and affording the attorney general with enforcement authority. SF 262
CYBERSECURITY
Utah amended its Protection of Personal Information Act to revise to whom disclosure must be made when there is a system security breach of personal information. SB 127
DEATH BENEFITS
Arkansas amended its law exempting death benefits from actions by creditors. The amendments provide clarification of benefits covered by the exemption. HB1313
DENTAL INSURANCE
Michigan's Insurance Director published the 2024 Form and Rate Filing Requirements for Stand-Alone Dental Plans on and off the Marketplace. Bulletin 2023-09-INS
North Dakota passed a new law that requires an individual or group dental policy to authorize the assignment of reimbursement for services directly to the provider of services. If the insured or beneficiary authorizes it, the carrier must pay the claim amount it would have reimbursed to the insured directly to the provider. SB 2135
DISCRIMINATION
Tennessee enacted a law that deals with discrimination relative to genetic information. A life insurance carrier cannot cancel coverage, require an applicant to take a genetic test as a pre-condition of insurability, or require a complete genome sequencing of an individual's DNA. In addition, a carrier cannot access sensitive medical information, including genetic data, without the individual's written consent. A carrier can obtain genetic information within an individual's medical record for underwriting. HB 1309
FILINGS: HEALTH
Massachusetts issued guidance for filing forms and rates in compliance with the merged small group/individual market. The notice provides general information and instructions for filing. Filing Guidance Notice 2023-A
Rhode Island's Insurance Superintendent issued guidance regarding accident, health and sickness filing requirements which have not changed in recent years. All health insurance policies or certificates that provide coverage for essential health benefits and limited benefit coverage must be filed and approved prior to use. Limited benefit includes disability income, short term limited duration plans, and indemnity insurance such as cancer or hospital indemnity. Bulletin 2023-3
FRAUD / ANTI-FRAUD
Oklahoma's Insurance Department shares instructions on paying the Anti-Fraud Assessment Annual Fee due by July 1, 2023. Paper filings and checks will no longer be accepted. Notice dated April 5, 2023
HEALTH INSURANCE - COMPREHENSIVE
Arkansas adopted a statute requiring coverage for the screening of birth mothers for depression. Screening must be provided at the time of birth. HB1035
HEALTH INSURANCE / HEALTH RATES
California's Insurance Department issued a press release reminding insurers that California continues to require coverage for certain preventive health care measures, including HIV prevention medication, screening for sexually transmitted disease and breast and colorectal cancer screening. Press Release 3-30-2023
Idaho approved a bill clarifying and expanding the availability of virtual health care. HB 162
New Mexico passed a law requiring health plans and policies issued or renewed on and after January 1, 2024, to cover biomarker testing for diagnosis, treatment, disease management and ongoing monitoring of a health condition. HB 73
Virginia amended the health insurance law allowing a carrier to vary its premium rates based on tobacco use. Currently, premiums may be up to 1.5 times higher for a tobacco user than a nonuser. This law was amended to eliminate the tobacco surcharge for individual or small group health insurance issued or renewed on or after January 1, 2024. HB 1375
IIPRC / INTERSTATE COMPACT
North Dakota enacted a law developing uniform standards for individual and group life, annuity, and disability income products covered by the Interstate Insurance Product Regulation Commission. This law is effective August 1, 2023. SB 2172
INDUCEMENTS
Arkansas amended the definition of "rebates" to modify the minimum value of gifts to $100 or less in wholesale value. HB 1525
Maryland updated its anti-rebating law to allow for situations when an insurer may provide products or services which educate or allow the person to assess, monitor, control or prevent risk of loss. SB 725
LIFE INSURANCE / LIFE CONTRACTS
The California Insurance Department issued a bulletin notifying all life insurers of the amount of the aggregate annual PBR assessment for FY 2022-23. Bulletin 2023-3
MISCELLANEOUS
Delaware issued a notice reminding health insurers to respond to the Health Insurance Carrier Survey. Responses should be submitted via email no later than September 15, 2023. Bulletin 52 (Reissued)
PHARMACY BENEFIT MANAGERS
Michigan's Insurance Director informed Pharmacy Benefit Managers that a new law gives the Director authority to license and regulate PBM effective 1/1/2024. While registration is not required, the Director recommends PBMs complete the PBM Registration Form as soon as possible to ensure they receive timely notifications regarding licensing and other regulatory requirements. Bulletin 2023-14-INS
New York amended the Registration of Pharmacy Benefit Managers regulation to change the effective date from January 1, 2023, to January 1, 2024. First Amendment to 11 NYCRR 451, Regulation 221
POLICY LANGUAGE
Colorado enacted legislation amending its certification requirements for English-language policies translated into a language other than English. HB 1004
REPORTS - DATA CALLS & OTHER REPORTS
Pennsylvania issued a data call requiring insurers that transacted individual or group Medicare Supplement business in 2022 to report certain data by May 31, 2023. Data Call dated March 2023
THIRD PARTY ADMINISTRATORS
New Jersey's Insurance Department issued standardized annual financial reporting requirements for third party administrators to ensure that data is properly captured. Renewals may begin April 1. Extension requests must be submitted by May 15. Notice dated March 27, 2023