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!
Arkansas published a bulletin outlining the agent training requirements under the Suitability in Annuities Rule 82. Bulletin 7-2021
Utah issued a bulletin giving insurers guidance on new proof of delivery requirements when an insurer sends notice of life insurance policy termination to an insured. Bulletin 2021-3
Washington enacted a law that requires an insurance company that issues either a one-time lump sum or installment payment that is over $500 directly to a claimant for a bodily injury, wrongful death, workers' compensation or life insurance claim to verify if the claimant owes past-due child support. The insurer must withhold the specified amount and submit it within 20 days of receiving confirming information. HB 1416
Kansas implemented the updated NAIC Credit for Reinsurance Model Regulation by placing it into a statute. SB 78
Iowa passed the Insurance Data Security Act which establishes state standards for data security as well as the investigation and notification of cybersecurity events. HF 719
Tennessee passed the Insurance Data Security Law. It establishes standards for security of data, investigations of cybersecurity events, and reporting of cybersecurity events to the DOI. HB 766
New Mexico promulgated a new rule outlining minimum standards for individual and group dental and vision plans. This rule applies to group plans sold to a New Mexico resident under a master policy delivered outside the state. 13.10.35 NMAC
Georgia has established a Company Address Change Portal as a convenience for carriers to change certain required addresses and contact information. Bulletin 21-EX-7
Rhode Island issued a bulletin providing the Life Insurance Buyer's Guide which should be used for compliance with Life Insurance Disclosure Regulation 230-RICR-20-25-3 for individual life insurance. Bulletin 2021-4
Colorado passed a law protecting individuals in need of organ transplants from discrimination due to disability. This law makes it unlawful for health insurance carriers to deny, decline or limit coverage for an organ transplant or related treatment or services if the insured is a “qualified recipient.” HB 1169
Washington passed the Gender Affirming Treatment Act dealing with health insurance discrimination. This law prohibits a health carrier from denying or limiting coverage for gender affirming treatment under certain circumstances. SB 5313
CMS published the Final 2022 Actuarial Value Calculator Methodology for Essential Health Benefit non-grandfathered health insurance plans offered in the individual and small group markets, both inside and outside of the Exchanges. This is used for the purpose of determining levels of coverage for bronze, silver, gold and platinum plans. CMS Notice dated May 6, 2021
Wisconsin issued a bulletin to update carriers and agents regarding premium assistance benefits under the American Rescue Plan Act of 2021. The responsible party for payment of premiums shifted from employers to insurers who will receive a tax credit against Medicare taxes. This applies to employees who experience a qualifying event and are eligible for continuation of their group health insurance. Bulletin dated May 20, 2021
Rhode Island passed a law requiring carriers to cover prostate and colorectal preventive screening examinations and laboratory tests for cancer for non-symptomatic persons in accordance with the American Cancer Society Guidelines. Carriers cannot impose cost-sharing on the coverage when the services are delivered in-network. HB 5432
Montana amended its law dealing with carriers who provide mental health or substance use disorder benefit. New definitions as well as new reporting and recordkeeping requirements are included. Self-funded multiple employer arrangements are also subject to the newly enacted requirements. SB 216
Arizona passed the Genetic Information Privacy Act. This law prohibits Direct to Consumer Genetic Testing companies from disclosing a consumer's genetic data to any entity offering life insurance, health insurance or long term care insurance or to any employer of the consumer. HB 2069
West Virginia enacted the Air Ambulance Patient Protection Act. Air ambulance membership agreements or subscriptions that promise to pay or reimburse co-pays, deductibles or cost sharing amounts, are declared to be the business of insurance and require a valid license issued by the DOI. HB 2776
Arizona changed its Model Standard Nonforfeiture Law for Individual Deferred Annuities. The minimum interest rate used to determine nonforfeiture amounts has reduced from 1% to .15%. SB 1495
Oklahoma reduced the interest rate used to calculate minimum nonforfeiture amounts for life insurance and annuities. SB 529
Alabama amended its Pharmacy Benefits Manager law to require a PBM licensed previously to apply for a new license. It also lists several prohibited actions on the part of a PBM involving reimbursement rates for pharmacies, network participation and patient's choice of pharmacies. SB 227
Arkansas passed a law that requires written consent of a patient to transfer a prescription from a pharmacy. Disclosure of possible conflicts of interest in ownership of the PBM is required by a PBM, carrier, hospital, physician or pharmacy. Data mining of patient information is prohibited, and other prohibitions are included. SB 617
Maryland amended its law dealing with Pharmacy Benefit Managers to add new definitions, prohibitions and required disclosures. The law contains certain provisions applicable only to PBMs that provide services on behalf of a carrier. HB 601
Wisconsin's Insurance Commissioner issued a bulletin regarding the new Pharmacy Benefit Manager law recently passed. It points out required disclosures, reporting, cost-sharing limitations, audits and licensing. Carriers and PBMs are advised to carefully review the law to determine which provisions apply to their company. Bulletin dated May 12, 2021
Montana updated its law to conform with the NAIC Suitability in Annuity Transactions Model Law requiring producers and carriers to act in the best interest of the consumer. SB 363
Georgia enacted the Noncovered Eye Care Services Act. This law details certain actions by a health care insurer that constitute unfair trade practices. SB 43
Indiana amended its law to allow certain activities to be exempt from the rebate prohibition under the trade practice law. These activities include giving gifts to potential clients not exceeding $250 a year and a drawing where the value of the prize does not exceed $500, plus other activities in the marketing for sale or retention of a contract of insurance. Neither of these gifts can be in the form of cash. HB 1405