Life and Health News
September 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!
AGENT / PRODUCER LICENSING AND APPOINTMENT
California published notice of a new two-hour variable life/annuity course. Effective 01/01/25, the state will require life producers to complete the two-hour course before each license renewal. Licensing Notice Dated 07/31/24
ARTIFICIAL INTELLIGENCE
Arkansas published a bulletin intended to notify insurers doing business in the state of its expectation that companies comply with all laws and regulations when utilizing artificial intelligence. This includes laws dealing with unfair trade practices and unfair discrimination. Bulletin 13-2024
Michigan issued a bulletin to all insurers doing business in the state explaining its expectations that companies comply with applicable laws and regulations when utilizing artificial intelligence. Bulletin 2024-20-INS
West Virginia's Insurance Commissioner reminds insurers that use Artificial Intelligence (AI) Systems to comply with pertinent laws and develop a specific written program for the responsible use of an AI program. Bulletin 2024-06
CLAIMS / CLAIMS ISSUES
Washington's Division of Child Support (DCS) amended its rule requiring insurers to report claim information to the DCS and withhold payments if directed to do so. This rule change complies with SB 5842. Rule WSR 24-16-134
CREDIT INSURANCE
South Carolina's Department of Insurance published notice of tentative Credit Accident and Health Insurance rates to be used in 2025. Carriers who feel aggrieved may request a public hearing with respect to these rates. Bulletin 2024-09
DISASTER / CATASTROPHIC EVENT
North Carolina's Insurance Commissioner reminds health benefit plans that during a state of emergency declared as a result of Tropical Storm Debby, insureds are authorized to obtain extra prescriptions. Bulletin 24-B-08
DISCLOSURE REQUIREMENTS
California approved a bill that will require a health care service plan or health insurer to provide written or electronic notice of the benefit of behavioral health and wellness screening for children and adolescents ages 8-18. The notice is required beginning 01/01/25. AB 2556
EXCEPTED BENEFITS
Montana's Insurance Commissioner provided guidance regarding the disclosures and filing requirements for Hospital Indemnity and other independent and non-coordinated fixed-indemnity policies. Advisory Memorandum dated August 2, 2024
Virginia issued guidance to remind carriers of anticipated loss ratio standards for Excepted Benefits policies. Carriers are expected to immediately evaluate their open and closed blocks of business to determine whether corrective action must be taken. The Bureau will be sending a questionnaire to certain insurers that have written excepted benefits policies in Virginia. Guidance Document dated August 19, 2024
FILING REQUIREMENTS / PROCEDURES
Colorado published an amended bulletin reminding carriers of the requirements of SB 23189 regarding coverage for abortion services in the individual and small group market. Carriers are reminded to update all affected forms and actuarial memoranda. Bulletin B.4.139
Florida adopted a regulation requiring an attestation of compliance with Section 655.0323(1) and (2) FS. The regulation includes a form for completion of the attestation, available on the office's website and is due by July 1 each year. FAC Rule 69U-100.323
GUARANTY ASSOCIATION
New Jersey's Acting Commissioner notified all insurers of increased limits on coverage amounts provided by the New Jersey Life and Health Insurance Guaranty Association and a revised disclaimer notice to be given to policyholders. Bulletin 24-13
HEALTH INSURANCE - COMPREHENSIVE
Illinois approved a bill requiring that a group or individual accident and health plan, or managed care plan, after 01/01/26, must provide coverage for a medically necessary colonoscopy. HB 2385
Oklahoma's Insurance Commissioner informs health benefit plans of the new requirement to enable the public to report inaccurate information in a provider directory. The plan must verify or update the information within two days of receipt of a public report. Beginning March 1, 2025, and each March 1 thereafter, an insurer of a health benefit plan must file an annual provider directory audit report with the Insurance Department. Bulletin 2024-07
Oregon updated a rule to specify 13 well-woman preventive services to be covered during a comprehensive well-woman visit without cost sharing. The preventive services are identified by the U.S. Health Resources and Services Administration as of December 2022. OAR 836-053-0435
LIFE INSURANCE / LIFE CONTRACTS
Arkansas published a bulletin clarifying its position on repatriation of remains coverage. It has determined that a life insurance carrier has sufficient authority to issue this coverage in a standalone life insurance policy or as an endorsement to a life insurance policy. A separate certificate of authority for travel insurance is not required. Bulletin 11-2024
Idaho published a bulletin announcing the rate of interest payable on cash surrender benefits, effective 07/01/24. The minimum rate of interest on deferred payment is now 10.125%. Bulletin 24-04
MARKET CONDUCT EXAMINATIONS
Illinois enacted SB 1479, making numerous changes to its market conduct examination laws, including the manner in which a market conduct examination may be initiated and conducted. Other conditions include the penalties for failure to respond and provisions for corrective action. SB 1479
MISCELLANEOUS
Illinois amended the Automatic Contract Renewal Act. Any contract that includes a free trial or promotional period that lasts 15 days or longer, and includes an automatic renewal, must provide notification to the consumer at least three days before the cancellation deadline and send notice in a manner with which the consumer is familiar. SB 2764
Ohio passed a law that revised coverage for dental and vision insurance regarding provider contracts, appeal process and terminations. This law also addresses misrepresentation about policy terms and benefits and requires more detailed information to be provided on out-of- pocket expenses and business interests in suppliers of vision and dental care materials. SB 40
Virginia issued guidance to carriers writing Short-Term Limited-Duration Insurance. Forms must be filed and approved by Bureau of Insurance and contain notices and disclosures that comply with Virginia law and Federal rules. Guidance Document dated August 2024
OMNIBUS LEGISLATION
Ohio passed a law allowing pet insurance to be sold and delivered in the state. It covers pre-existing exclusions and licensing of agents, among other items. This is part of an omnibus bill. SB 175
Ohio passed an omnibus law requiring a statutory agent appointment to include the address of the agent's ordinary residence or usual place of business in Ohio. This bill also addresses fraudulent business filings, deceptive mailings and other items. SB 98
PHARMACY BENEFIT MANAGERS
New Hampshire passed a bill revising the reporting requirements for Pharmacy Benefit Managers and insurance companies. SB 555-FN
West Virginia addresses the applicability of the West Virginia Pharmacy Audit and Integrity Act to prescription drug discount plans and pharmacy coupon cards. Bulletin 2024-5
SUITABILITY
Louisiana published a bulletin announcing that it has adopted the "best interest" standard for annuity recommendations. Notice Dated 7-30-2024
Missouri adopted the most recent NAIC Suitability in Annuity Transactions Model, requiring a best interest standard in an annuity recommendation. 20 CSR 400-5.900
TRAVEL INSURANCE
Colorado published a bulletin providing guidance on travel insurance filing requirements, updated as a result of the passage of HB 24-1060. The bulletin provides, among other things, guidance on submitting filings that combine property casualty and accident and health coverages and provides a link for additional resources. Bulletin B-5.49