Life and Health News
November 2022
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
Florida's Department of Financial Services, Division of Insurance amended the number of hours required for approved continuing education courses. FAC 69B-228.080, .180
Hawaii's Insurance Commissioner issued a memorandum to inform all insurers, licensees, registrants and continuing education providers of changes and mandatory requirements for individuals and business entities due to the transition to NAIC's State Based System (SBS). Memorandum 2022-10 LIC
Oklahoma's Insurance Department issued a notice to remind all carriers it is important to keep their producer licensing contact email information updated to ensure prompt receipt of notices. Key dates regarding renewal appointments are included. 2022 Appointment Renewal Notification
Wyoming revised its regulations governing continuing education. Chapter 20, Sections 1 – 15
ANNUITIES / ANNUITY CONTRACTS
Alaska updated rules on suitability in annuity transactions. 3 AAC 23, 26
North Carolina adopted a suitability in annuity transactions rule effective January 1, 2023. 11 NCAC 12.0462
CREDIT FOR REINSURANCE
Florida's Office of Insurance Regulation updated its reinsurance regulation to follow changes to the NAIC model regulation relating to credit for reinsurance. FAC 69O-144.001+
CYBERSECURITY
Maryland's Insurance Commissioner issued a bulletin to remind carriers of their obligation to report cybersecurity events within three business days after determination an event has occurred. Notice forms and instructions are included. Bulletin 22-13
DEPARTMENT OF INSURANCE
Colorado adopted a new regulation requiring companies doing insurance business in Colorado to maintain a registered agent in the state. The Insurance Division will not serve as registered agent for these companies. Regulation 1-1-10
Maryland notified all insurers offering insurance in Maryland that a change has occurred in the ACH and Wire Payment numbers for premium tax and industry assessments. The Department encourages the use of OPTins to pay premium tax and fees. Bulletin 22-14
FRAUD / ANTI-FRAUD
California amended provisions concerning acts of insurance fraud. The Commissioner is authorized to convene meetings with insurance companies or self-insured employers to discuss specific information concerning suspected, anticipated, or completed acts of insurance fraud. A district attorney may do the same and invite the commissioner to attend. The bill gives conditional immunity from civil liability for libel, slander, or any other relevant cause of action in certain circumstances. AB 1681
HOLDING COMPANIES
Texas' Department of Insurance adopted a rule based on the NAIC model act and regulation for the group capital calculation. The new rule will require certain insurers to file a group capital calculation with their registration. 28 TAC 7.125
INTERNAL AND EXTERNAL REVIEW
The Texas Department of Insurance adopted a rule concerning independent review of preauthorization exemptions. This rule implements HB 3459 passed in 2021. 28 TAC 12.601
MISCELLANEOUS HEALTH / ACCIDENT
California passed a law that requires student health Insurance coverage to be considered individual health insurance coverage for policy years beginning on January 1, 2024. AB 1823
New York approved changes to a law that allows victims of domestic violence the opportunity to designate an alternate address for health insurance claims or billing purposes. SB 7263; Ins. Law s 2612
The IRS updated benefit limits on employee benefit plans for 2023. Changes are included for Flexible Spending Account contribution limits, Health Savings Account maximum contributions, and the minimum deductible under a High Deductible Health Plan. IRS Revenue Procedure 2022-38
Washington amended a rule to require that notices of adverse benefit determination be reader friendly and contain specific wording no later than January 1, 2023. WAC 284-43-3070
NONFORFEITURE
Oklahoma's Insurance Department issued a bulletin providing its position on endorsements offering enhanced cash surrender value (ECSV) benefits. Until the NAIC clarifies whether ECSV endorsements violate the Standard Nonforfeiture Law, filings for ECSV endorsements will not be approved by the Department. Bulletin 2022-8
NOTICE TO INSUREDS
Montana amended rules on life insurance illustrations to allow for consideration of sex and marital status pursuant to HB 379. ARM 6.6.706, .707
PRE-NEED CONTRACTS
Alabama's Insurance Department clarified its position on the use of graded benefit provisions in life insurance policies or annuities used to fund preneed contracts. Bulletin 2022-05
REGULATORY REPORTING REQUIREMENTS
Illinois is now participating in the NAIC Climate Risk Disclosure Survey. Domestic carriers with $100 million or more in premiums must complete the survey by November 30, 2022. Company Bulletin 2022-16
STANDARD VALUATION LAW
Alabama adopted the 2023 Version of the Valuation Manual, as revised by the NAIC in 2022, to be effective January 1, 2023. Regulation 481-1-161-.09