Newsletter
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!
Utah's Telephone and Facsimile Solicitation Act has been amended to enhance the penalties if a violator solicits an on-call emergency provider while he/she is on-call. HB 360
California's Insurance Commissioner issued an annual reminder to insurers, producers and all licensees of the Producer Licensing Bureau of the requirement to report changes to background information within 30 days of the change. Examples of background information include certain administrative actions regarding Financial Industry Regulatory Authority (FINRA) and other occupational licenses, bankruptcy proceedings, fraud, misappropriation or conversion of funds, etc. Notice dated March 5, 2021
Idaho enacted a bill relating to the Annuity Consumer Protections Act. It clarifies the obligations of insurance producers and insurers to act in the best interest of the consumer when making a recommendation of an annuity. HB 79
Kentucky added a new section in its law dealing with reimbursement of pharmacists. An insurer, TPA and self-insured plan must reimburse a pharmacist for a service or procedure at the same rate as that provided by other non-physician practitioners. Further, a clean claim consists of a 1500 Health Insurance Claim Form. HB 48
New Hampshire has amended its Claim Settlement Time Limits administrative code. The language required in a letter sent to an insured after the first 30 days, notifying them of the need for additional time to evaluate their health claim has changed. Any notice rejecting a health claim in whole or in part, must amend the Notice of Insurance Department statement contained in that rejection. Ins 1001.02
New York's Department of Financial Services issued a circular letter providing notice to insurance companies regarding diversity and corporate governance. NY plans on requesting information from carriers regarding the gender, race and ethnic make-up of their corporate boards and management. Circular Letter No. 5 (2021)
Idaho amended an existing law to establish provisions regarding reciprocal jurisdictions and credit for reinsurance procedures. HB 80
Maine enacted the Insurance Data Security Act which establishes standards for data security and exclusive standards for the investigation of and notification to the superintendent regarding a cybersecurity event. The law is effective January 1, 2022 but requires oversight of third-party service provider arrangements no later than January 1, 2023. H.P. 17 - L.D. 51
Utah passed a law that creates affirmative defenses to certain causes of action arising out of a breach of system security. HB 80
South Dakota passed a law allowing dentists to void that section of an agreement with an insurer which allows the sharing, transfer or assignment of contractual discounts to a third party insurer or entity. HB 1073
Utah passed a bill dealing with dental claims and dental leasing contracts. It describes when an insurer may use bundling and down coding, when a third party may lease a dental plan network and the requirements for a dental lease contract. A dental provider can opt out of a lease if leased by an insurer. HB 359
Arkansas requires a health benefit plan to provide coverage for early refills of prescription eye drops by establishing the Arkansas Coverage for Early Refills of Prescription Eye Drops Act. HB 1450
Utah amended the insurance code to require the filing of an application and enrollment form for a mass marketed life or accident and health insurance policy issued outside of Utah and covering residents of Utah. 31A-21-404
Utah amended its description of an association to which a group life insurance policy may be issued. 31A-22-505
Utah passed a law that requires an insurance company to send a notice to a designated third party before terminating life insurance coverage, and to obtain proof of delivery for the notice of termination of coverage. SB 79, 31A-22-402
Utah passed a bill that requires mental health access and parity in requiring certain individual and group health benefit plans to reimburse for telehealth services for mental health. SB 41
Maryland will require the registration of Pharmacy Services Administrative Organizations beginning July 1, 2021. The Maryland Insurance Administration is accepting applications for registration beginning April 1, 2021. A PSAO means an entity that provides a contracted pharmacy with contracting administrative services relating to prescription drug benefits. Bulletin 21-07
South Dakota passed a law authorizing innovative insurance products and services to enable a person to test an innovative insurance product or service without obtaining a license or other authorization that might be otherwise required. An innovation is incorporating new or emerging technology, including blockchain technology, to address a problem, provide a benefit or offer a product, service, business model, or delivery mechanism that is not known by the Commissioner to have a comparable widespread offering in the state. SB 55
Nebraska has passed a law relating to the Standard Nonforfeiture Law for Individual Deferred Annuities. The interest rate for minimum nonforfeiture amounts has changed. LB 373, 44-407.14
Utah amended its standard nonforfeiture law for individual deferred annuities. 31A-22-409
Arkansas enacted an insurance department general omnibus bill which, among other things, covers acceptable ways an insurer may make a claim payment, modifies the intent of the corporate governance annual disclosure act, and modifies the registration or licensure requirements for a multiple employer trust or multiple employer welfare arrangement. HB 1238
California's Department of Managed Healthcare furnished information on Provider Directory Annual Filing Requirements, Checklist and Model Exhibit E-1 for calendar year 2021. Notice dated March 4, 2021 regarding APL 21-010 - Provider Directory Annual Filing Requirements
Arkansas's Insurance Commissioner notified carriers of its intent to adopt amendments, revisions or modifications to the Accounting Practices and Procedures Manual published by the NAIC used with the annual filing due March 1, 2022. Bulletin 3-2021
Arkansas revised its minimum annual aggregate stop loss attachment point for groups of 50 or less to 120% of expected claims with an annual attachment point for claims incurred per individual of $20,000. SB 239
Texas amended several regulation sections to align with bills passed in the 2019 legislative session dealing with utilization review. Some of these changes deal with HMOs, dental plans, stage 4 metastatic cancer, and preauthorization renewal requests. 28 TAC 19.1702 through .1718c