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Property Casualty News May 2021

Property & Casualty News

May 2021

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!

AUTOMOBILE INSURANCE

Arizona passed a law that requires a peer-to-peer car sharing program to assume certain minimum liability. The owner and driver of the shared vehicle must have insurance policies providing minimum coverage during the car sharing period. Peer-to-peer car sharing is the business of connecting owners with drivers for financial consideration although it does not include rental vehicles. SB 1720

Arkansas amended its law regarding autonomous vehicles to require proof of compliance with certain liability coverage requirements. The law also determines how liability is determined for an accident involving an autonomous or fully autonomous vehicle, and sets forth other requirements. HB 1562

Colorado adopted an emergency regulation regarding restrictions on coverage for use of a personal automobile for food delivery during pendency of the COVID-19 emergency. This regulation applies to additional unnamed drivers on a restaurant commercial automobile policy for food delivery. 3 CCR 702-5, Regulation 21-E-05

Kansas created the "Peer-to-Peer Vehicle Sharing Program Act" which provides insurance, liability, record keeping and consumer protection requirements for peer-to-peer vehicle sharing. HB 2379

CAPTIVES

Alabama amended its Captive Insurance Company law and revised the requirements for an Alabama Coastal Captive Insurance Company. SB 23

CREDIT FOR REINSURANCE

Alabama amended its reinsurance law making it similar to the Credit for Reinsurance Model Law developed by the NAIC. HB 32

Oklahoma amended its reinsurance law to authorize credit for reinsurance when the reinsurance is ceded to assuming insurers meeting certain requirements in a reciprocal jurisdiction. SB 122

Washington passed an update to its law dealing with credit for reinsurance. It enacted the NAIC amendments to the Credit for Reinsurance Model Law relating to reciprocal jurisdictions. SB 5048

CYBERSECURITY

Illinois issued a bulletin setting forth Microsoft Exchange vulnerabilities that the Department has been made aware of. All regulated entities are requested to immediately assess the risk to their systems and consumers and take steps necessary to address vulnerabilities and customer impact. This includes patching or disconnecting vulnerable servers and using the tools provided by Microsoft. Bulletin 2021-07

Iowa enacted the "Insurance Data Security Act." This law deals with standards for data security as well as investigations and notifications of cybersecurity events. HF 719

New York Department of Financial Services issued a Cyber Fraud Alert follow-up regarding an ongoing cybercrime campaign to steal drivers' license numbers from automobile insurers. DFS gives direction on how to stop the theft and to remind carriers that Cybersecurity Events must be reported within 72 hours. Industry Letter of April 19, 2021

DISCRIMINATION

Arkansas passed a new law that prohibits discrimination against individuals in need of organ transplants on the basis of a disability. This includes declination of insurance coverage based solely on an individual's mental or physical disability. SB 155

Colorado passed a law prohibiting discrimination against a potential organ transplant recipient based solely on the person's disability. HB 1169

FILING REQUIREMENTS / PROCEDURES

Michigan Bulletin 2021-22-INS provides guidance related to the timing of personal auto rate and rule filings. The manual or plan must remain on file for a waiting period of 90 days before it becomes effective, and the period cannot be extended by the Director. Bulletin 2021-22-INS

Rhode Island issued a Bulletin setting forth expectations related to private passenger auto form and rate filings. While carriers may continue to offer premium credits or refunds due to COVID-19, the Division is now asking each carrier to submit a rate filing no later than July 30, 2021 that considers changing consumer driving patterns related to COVID-19. Bulletin 2021-3

FLOOD INSURANCE / NFIP

Alabama passed a law that exempts flood insurance from the rate filing and approval requirement. SB 69

Iowa enacted a new law known as the Private Primary Residential Flood Insurance Model Act. Its purpose is to encourage a robust private primary residential flood insurance market, to provide consumer choice, and to provide alternatives to the existing national flood insurance program. HF 583

GENERAL LIABILITY INSURANCE

Arkansas passed a law protecting businesses from civil liability for damages or injuries caused by or resulting from exposure to COVID-19 on the business premises. HB 1487

PERSONAL LINES INSURANCE

Alabama amended its vehicle law to add a definition of electric bicycle, classes of electric bicycles and rules for the operation of these bicycles. HB 99

Illinois issued a bulletin to remind carriers writing Homeowners Insurance that for any loss by fire or explosion exceeding $25,000 they must obtain a Certificate regarding payment of taxes and expenses before paying the claim. A Certificate example is attached to the bulletin although companies may use their own form as long as it contains the information requested in the example. Bulletin 2021-04

WORKERS' COMPENSATION

California Workers' Compensation Insurance Rating Bureau announced that it submitted a pure premium rate filing to the Department of Insurance with a proposed effective date of September 1, 2021. The advisory pure premiums are based on insurer losses incurred during accident year 2020 and prior accident years valued as of December 31, 2020. An insurer is not required to use either the proposed or approved pure premium rates in establishing the rates it will charge. WCIRB Bulletin 2021-07

Massachusetts Workers' Compensation Insurance Organization updated its injury description table to add a new nature of injury code 38 for adverse reaction to a vaccination or inoculation. WCRIBMA Circular Letter 2385

Massachusetts Workers' Compensation Rating and Inspection Bureau issued a Circular Letter with a reminder from the Insurance Department regarding the timely filing of rates. The bulletin sets forth key filing deadlines for extending or altering workers' compensation rate deviation filings that are currently in effect. WCRIBMA Circular Letter 2386

Mississippi's Workers' Compensation Medical Fee Schedule has been revised to address how telemedicine services must be provided. Only certain CRT codes in the current Medical Fee Schedule can be reimbursed as telemedicine. Only a physician holding a valid Mississippi license is allowed to practice telemedicine in Mississippi. Regulation R20-2-12.19

Tennessee revised its law to authorize the workers' compensation court to award attorneys' fees and costs for injuries when an employer wrongfully denies a claim. It also applies when an employer wrongfully fails to timely initiate any workers' compensation benefits to which an employee is entitled. It applies to injuries occurring from July 1, 2021 to June 30, 2023. SB 1576

Texas notified carriers writing workers' compensation and employers' liability insurance in Texas that the Department of Insurance accepted the NCCI advisory loss cost filing with an effective date of July 1, 2021. Carriers should use their own independent insurer-specific classification or NCCI loss costs. Rate filings are required. Commissioner's Bulletin #B-0011-21

Washington enacted legislation requiring an insurance company that pays a lump sum or installment payment that exceeds $500 to a claimant for workers' compensation to verify whether the claimant owes past due child support. This must be verified within 10 days after opening a claim. HB 1416

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Newsletter

Life and Health News May 2021

Life and Health News

May 2021

CAPTIVES

Alabama amended its Captive Insurance Company law and revised the requirements for an Alabama Coastal Captive Insurance Company. SB 23

CLAIMS / CLAIMS ISSUES

New Mexico amended its claims payment law and now requires clean electronic claims from pharmacies for prescription drugs and related fees to be paid within 14 days. SB 124

Oklahoma amended its claims payment law to require written notice to an insured if a clean claim or any portion of a clean claim is denied for any reason, within 30 calendar days of receipt of the claim. This applies to claims under any accident and health insurance policy. SB 550

CREDIT FOR REINSURANCE

Alabama amended its reinsurance law making it similar to the Credit for Reinsurance Model Law developed by the NAIC. HB 32

Arkansas modified its Credit for Reinsurance Law to simplify the procedures that allow an insurer to apply for and receive credit for reinsurance. HB 1240

Colorado updated its Credit for Reinsurance Act to allow additional means by which credit for reinsurance may be allowed to a ceding insurer. HB 1063

DENTAL INSURANCE

Idaho revised is law dealing with the requirements that must be contained in a contract with a dental service provider. SB 1124

Indiana enacted a law that gives a dentist the authority to order and administer an immunization recommended by the federal Centers for Disease Control and Prevention Advisory Committee on Immunization Practices. In addition, a health plan cannot require a dentist to accept payment under the plan by virtual claim payments. Certain disclosures are required. HB 1079

North Dakota enacted a law relating to prior authorization of dental services, dental networks, and payment of dental claims. HB 1154

DISCRIMINATION

Minnesota passed a bill prohibiting life insurance carriers from using knowledge of a prescription for opiate antagonist solely when making an underwriting determination on whether to issue, renew, cancel or modify a life insurance policy. HF 652

DRUG / PRESCRIPTION COVERAGE

Alabama passed a new law requiring any individual or group health benefit plan to cap the amount of any cost-sharing or co-pay that an insured or beneficiary is required to pay for prescription insulin. HB 249

Nebraska passed the Step Therapy Reform Act. Among other things, it provides that upon approval of a step override exception, the carrier or utilization review organization must authorize coverage of a prescription drug selected by the insured's health care provider if that drug is covered under the health plan. LB 337

Vermont issued a bulletin providing guidance on its interpretation of the monthly limit on an insured's out-of-pocket spending for prescription insulin medications. Bulletin 220

ELECTRONIC TRANSACTIONS

Colorado passed a law expanding the ability to conduct business activities electronically. HB 21-1124

HEALTH CARE EXCHANGE / MARKETPLACE

Maine Insurance Department issued a bulletin informing carriers that the uniform rate and form filing deadline is June 15, 2021. This applies to all non-grandfathered health plans and stand-alone dental plans, subject to the Affordable Care Act, which will be offered with effective dates during 2022 in the individual and small group markets in Maine. Bulletin 456

Nebraska Department of Insurance gave notice to carriers writing individual and small group health insurance that transitional policies may continue until January 1, 2023. This follows the guidance issued by the Center for Consumer Information and Insurance Oversight of the states' option to extend transitional policies. Notice of April 21, 2021

LIFE INSURANCE / LIFE CONTRACTS

Kentucky adopted the latest edition of the NAIC Buyer's Guide. A definition of "Current Scale of Nonguaranteed Elements" was added. 806 KAR 12:170

MEDICARE SUPPLEMENT INSURANCE

Massachusetts informs all commercial health carriers and HMOs that the department issued the "Massachusetts Consumer's Guide to Medicare." This document must be provided along with the annual federal publication “Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare” to persons eligible for Medicare. Bulletin 2021-05

MENTAL HEALTH PARITY

CMS released FAQs about Mental Health and Substance Use Disorder Parity Implementation and the Consolidated Appropriations Act, 2021 Part 45. These FAQs were prepared jointly by the Departments of Labor and Health and Human Services. CMS Notice dated April 2, 2021

NONFORFEITURE

Arkansas modifies the interest rate used in determining the minimum required nonforfeiture rate for individual deferred annuities. HB 1601

PHARMACY BENEFIT MANAGERS

Arizona added a new section to its Pharmacy Benefit Manager Law that prohibits a PBM from charging a pharmacy for adjudicating, processing or transmitting a pharmacy benefit claim, or developing, managing or participating in an adjudication network. SB 1356

Arkansas amended the Pharmacy Benefits Manager Licensure Act and the Pharmacy Audit Bill of Rights laws dealing with network adequacy. Regulations will be adopted. HB 1804

West Virginia amends its Pharmacy Benefit Manager licensing law to clarify requirements for a PBM's network. It also amends reporting requirements, provides for consumer choice for pharmacies, requires rebates to be passed down and sets guidelines for pharmacy benefit plans. HB 2263

Wisconsin passed a law that requires Pharmacy Benefit Managers to be licensed effective January 1, 2022. The law also contains new reporting, disclosure, audit and claim requirements. SB 3

PREMIUM TAX

Kentucky published the 2021-2022 Kentucky Local Government Premium Tax Updates to Forms and Documents. Bulletin 2021-001

PRE-NEED CONTRACTS

Kansas increased the monetary cap on irrevocable prearranged funeral agreements from $7,000 to $10,000 with an ongoing annual CPI increase each year. HB 2254

Kentucky established a limited preneed funeral agent license. 806 KAR 9:370

SUITABILITY

Nebraska amended its Protection in Annuity Transactions Act to adopt the latest updates to the NAIC's Annuity Suitability Model Regulation. LB 22

TRADE PRACTICES

Arizona amended its law to provide that it is not considered to be a rebate or discrimination if a disability insurer pays implementation credits that offset expenses a group policyholder incurs when it initiates or changes new or existing group coverage. HB 2795

North Dakota allows a life, annuity or accident and health producer to conduct raffles or drawings. Under certain conditions they are not considered to be an unfair trade practice. SB 2072

Vermont issued a bulletin providing Implementation Credits and Rebating Guidance regarding group policyholders. Bulletin 219

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Newsletter

Property Casualty News April 2021

Property & Casualty News

April 2021

AGENT / PRODUCER LICENSING AND APPOINTMENT

Alabama's Insurance Department issued a Bulletin regarding Producer, Adjuster and Title Insurance Agent licensing issues in light of the COVID-19 emergency. The bulletin covers Initial License Applications, Prelicensing Certificate of Completion, and Continuing Education Requirements. It modifies previous bulletins. Bulletin No. 2021-02

AUTOMOBILE INSURANCE

Alabama's Department of Revenue revised the requirements for a title obtained under a surety bond. Rule 810-5-75-.34

Iowa amends its law relating to wrecked or salvage motor vehicles. A wrecked or salvage vehicle means a damaged motor vehicle subject to registration for which the cost of repair exceeds 70% (was 50%) of the fair market value before the vehicle became damaged. SF 230

North Carolina approved revisions to its Personal Auto Policy Program effective for all new and renewal policies effective October 1, 2021. Notice requirements are included. North Carolina Rate Bureau Circular Letter A-21-4

COMMERCIAL LINES INSURANCE

Colorado added a new regulation section that applies to all P&C carriers that file rates and/or loss cost filings with the DOI. The new section addresses the practice of rate change limitations (caps, ceilings and/or floors) to new and/or existing policyholders in order to facilitate the transition to rate parity between policyholders of the same class and hazard and avoid unfairly discriminatory rating. Regulation 3 CCR 702 Reg. 5-1-20 s 1

CONFIDENTIALITY / PRIVACY

North Dakota amended its regulation dealing with annual privacy notices sent to customers. It includes an exception for a licensee to provide the annual notice if it has not changed its policies and practices on disclosing nonpublic personal information from those disclosed in the most recent notice it sent to customers. Regulation 45-14-01-06

CREDIT FOR REINSURANCE

Montana amended its law allowing credit to a domestic ceding insurer to an assuming insurer when certain conditions are met. The commissioner can suspend or revoke assuming insurers that do not meet certain requirements. 33-2-1216 MCA, HB 80

CYBERSECURITY

New York provides a follow-up letter to its Cyber Fraud Alert from February 16, 2021. The letter advises companies to take immediate action to protect consumer data from ongoing cybercrime. Industry Letter of March 30, 2021

FLOOD INSURANCE / NFIP

FEMA released a new listing of communities scheduled for suspension of the sale of flood insurance and those eligible for the sale of insurance under the National Flood Insurance Program (NFIP). 44 CFR Part 64

GENERAL LIABILITY INSURANCE

Montana passed the Securities Uniform Whistleblower Act. This law provides monetary awards to whistleblowers who provide information relating to a possible violation of state or federal securities laws that has occurred or is about to occur. It also provides protection for those who make whistleblower complaints. HB 64

MISCELLANEOUS

Florida passed a law that concerns civil liability for damages related to COVID-19. It provides requirements for a civil action based on a COVID-19 related claim, and states that the plaintiff has the burden of proof. SB 72

Wyoming amended its law that prohibits discrimination in insurance and health care services based on a person's disability. A covered entity cannot, solely on the basis of an individual's disability, consider the individual ineligible to receive an anatomical gift or organ transplant, deny medical services or other services related to organ transplant. An individual may file a lawsuit to enforce compliance. 35-5-301, HB 111

SERVICE CONTRACTS / WARRANTY INSURANCE

North Dakota amended its law relating to the marketing, selling, issuing or administering of property service contracts and vehicle theft protection product warranty to state they are not subject to the insurance code. 9-01-21

SURPLUS LINES

North Dakota requires a surplus lines affidavit documenting whether the insurance, indemnity contract or surety bond can be procured from a company authorized to do business in North Dakota to now be filed quarterly with the insurance commissioner instead of within 60 days after placing the insurance. Regulation 45-09-01-03

Pennsylvania's Insurance Department published the insurance coverages or risks generally unavailable in the authorized market and which are exportable. For insurance coverages on the export list, a diligent search among insurers admitted to do business in Pennsylvania is not required before placement of coverage. Notice of April 3, 2021

WORKERS' COMPENSATION

Kentucky updated standards for workers' compensation unfair claims settlement practices. 803 KAR 25:240

Mississippi amends its Workers’ Compensation Medical Fee Schedule for telemedicine for workers' compensation. It also sets forth how telemedicine services must be provided. Regulation R20-2-12.19

New Jersey announced that due to the continuing COVID 19 pandemic, the Compensation Rating Bureau again extended certain premium reduction pricing elements available in the New Jersey Workers' Compensation and Employers' Liability Insurance Manual to December 31, 2021. Advisory Bulletin No. 86

North Dakota updated its Workers' Compensation laws to clarify that the definition of compensable injury does not include injury caused by the use of intoxicants, including recreational marijuana use, or the illegal use of controlled substances. HB 1084

Rhode Island notified carriers and others that the cost of living increase for 2021 will be 1.9% for certain workers' compensation benefits. Late payment of the increase may result in a 20% penalty on the unpaid amount. Information Letter 2021-02

The Connecticut Workers' Compensation Commission published the 2021 Official Connecticut Fee Schedule for Hospitals and Ambulatory Surgical Centers. Memorandum 2021-01

Virginia amended its workers' compensation law to make a presumption of compensation for certain diseases applicable to salaried and volunteer emergency medical services personnel. These diseases are respiratory disease, hypertension, heart disease, or cancer. 65.2-402, SB 1275

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Newsletter

Life and Health News April 2021

Life and Health News

April 2021

ADVERTISING / SALES & MARKETING

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

AGENT / PRODUCER LICENSING AND APPOINTMENT

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

ANNUITY DISCLOSURES

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

CLAIMS / CLAIMS ISSUES

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

CORPORATE GOVERNANCE

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)

CREDIT FOR REINSURANCE

Idaho amended an existing law to establish provisions regarding reciprocal jurisdictions and credit for reinsurance procedures. HB 80

CYBERSECURITY

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

DENTAL INSURANCE

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

DRUG / PRESCRIPTION COVERAGE

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

GROUP INSURANCE

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

LIFE INSURANCE / LIFE CONTRACTS

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

MENTAL HEALTH PARITY

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

MISCELLANEOUS

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

NONFORFEITURE

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

OMNIBUS LEGISLATION

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

REGULATORY REPORTING REQUIREMENTS

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

REPORTS - ANNUAL / QUARTERLY STATEMENT

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

STOP LOSS

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

UTILIZATION REVIEW - HEALTH CARE

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

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