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!
New Hampshire issued a bulletin to remind insurers that all producers acting as their agents must be appointed by the insurer. The Department may assess $2,500 penalties beginning in September 2021 if insurers and producers are not in compliance. Bulletin Docket No. INS 21-051-AB
Connecticut amended its annuity regulation to adopt the most recent version of the NAIC model regulation requiring producers to act in the best interest of the consumer when making an annuity recommendation. RCSA 38a-432a-1
Colorado passed a comprehensive consumer privacy law. This law allows consumers to opt out of the processing of their personal data, access, correct or delete the data or obtain a portable copy of their data. Opt-in consent is required for the processing of sensitive personal information such as genetic or biometric data, religion, or ethnic origin used to uniquely identify an individual. SB 21-190
Delaware revised provisions relating to credit for reinsurance. HB 44
Michigan's Director of Insurance issued a bulletin summarizing certain Insurance Data Security requirements under Public Act 690. It also includes the form for licensees to use in reporting a cybersecurity event to the Director. Bulletin 2021-32-INS
North Dakota's Insurance Commissioner informs insurance companies and producers of the requirements of the Insurance Data and Security law passed as SB 2075. The bulletin includes to whom the law applies, staggered effective dates for implementation, and information on reporting cybersecurity events. Bulletin 2021-4
Illinois passed the Uniform Electronic Transactions in Dental Care Billing Act. This law requires all dental plan carriers and dental care providers to exchange claims and eligibility electronically using the standard electronic data interchange transactions. SB 493
Delaware informed insurers, producers, and underwriters of the rescission of COVID-19 related bulletins and continuation of certain relevant provisions. Universally Applicable Bulletin No. 6
Illinois amended the Managed Care Reform and Patient Rights Act to require individual health plans to provide coverage for prescription drugs in at least 10% of each service area that apply a flat-dollar copayment structure to the entire drug benefit beginning January 1, 2023. This law also applies to group health plans with slightly different requirements. The law changes again in 2024. HB 1745
The Federal Department of Labor, Health & Human Services, and IRS issued FAQs about the Affordable Care Act and Consolidated Appropriations Act, 2021 Implementation Part 49. These FAQs cover several areas including: 1) Machine Readable Files for in-network rates, out-of-network allowed amounts and billed charges; 2) Price Comparison Tools; 3) ID Cards; 4) Good Faith Estimates and Advanced EOBs; 5) Provider Directories; 6) Balanced Billing Protection Disclosures; 7) Gag Clauses; 8) Pharmacy Benefits and Drug Costs Reporting; and 9) Continuity of Care. Many requirements have delayed compliance dates and good faith efforts to comply. FAQs dated August 20, 2021
Illinois amended its Network Adequacy and Transparency Act. Standards for access to treatment for mental, emotional, nervous or substance use disorders or conditions must satisfy specified minimum requirements. SB 471
Illinois enacted legislation requiring individual and group health insurance or a managed care plan to provide coverage for medically necessary pancreatic cancer screening. SB 968
Illinois prohibits certain life insurance underwriting practices if a person participated in a substance use treatment or recovery support program no less than 5 years before applying for insurance, or a person has been prescribed or obtained an opioid antagonist through a standing order. HB 33
California notified insurance carriers seeking an expedited review of a corporate application by year-end that they must submit the application by September 17, 2021. A Holding Company application must be submitted by October 15, 2021. An Application for Certificate of Authority or an Organizational Permit are not eligible for year-end completion. Notice dated 8/13/2021
Florida requires all sales telephone calls, text messages, and direct-to-voicemail transmissions to have the consumer's prior express written consent if the call will be made using an automated machine to dial the recipient's phone number or will play a recorded message. The amended Florida Telemarketing Act sets forth other compliance requirements. SB 1120
Illinois amended its Business Corporation Act to require a publicly held domestic or foreign corporation with its principal executive office in Illinois to disclose the self-identified sexual orientation and gender identity of each member of its board of directors. SB 1730
Louisiana repealed its Life Policy Search Law as of July 1, 2021. As a result, Louisiana is requesting carriers and other risk bearing entities to provide certain carrier contact information to the department. Any changes to information must be updated within 30 days of the change. An annual certification is required. Bulletin 2018-02 (Revised and Reissued)
Maine's Superintendent of Insurance published a bulletin concerning services provided through telehealth. Bulletin 459
Nebraska's Insurance Department has moved its offices twice in the last three years. Every carrier is instructed to update all forms with the correct address. For some claim denials, an insurer is required to give the department's address. A product filed with the old address does not need to be refiled in SERFF. Notice dated July 28, 2021
Delaware amended the minimum Annuity Nonforfeiture interest rate from 1% to 0.15% for individual deferred annuities. HB 3
New Hampshire excludes from being a rebate the payment or assignment of all or part of a producer's commission on the sale of insurance to an employee of the producer. HB 518
North Dakota's Insurance Commissioner issued a bulletin nothing that effective August 1, 2021, insurers and producers will be able to offer value-added products or services for loss control or loss mitigation to policyholders. To qualify as a value-added product or service, the value-added product or service must educate, assess, monitor, control or otherwise mitigate risk of loss to persons or property. Value-added products or services are no longer required to be specified in the form or rate filings and the Department asks that they not be included as a part of any filing. However, the Department does require notification of what the value-added product or service will be. Bulletin 2021-3
The New Mexico Insurance Superintendent issued a bulletin informing insurers that prior to offering or providing a value-added product or service, it must submit an informational filing in SERFF including a special form. Bulletin 2021-014
Connecticut's Insurance Commissioner issued a notice to all health carriers and licensed utilization review entities clarifying the External Review process due to a law change effective on October 1, 2021. Notice dated August 11, 2021