Life and Health News March 2012

The following is a brief review of selected items that may be of current interest to First Consulting & Administration, Inc. clients and friends.  Please feel free to copy it for distribution to your staff.  Contact us for more details about any item.  We welcome your comments and suggestions on this letter.  Please call our office.


CREDIT INSURANCE
Virginia issued an administrative letter reminding carriers licensed to write credit life and/or credit accident and sickness insurance that the Credit Insurance Experience Exhibit (CIEE) for the 2011 reporting year, from which information will be obtained to properly calculate these rates, must be submitted no later than April 1, 2012.     Administrative Letter 2012-01


FILING REQUIREMENTS
Oklahoma issued a bulletin to all health insurers regarding filing requirements for rates. The bulletin supplements prior Bulletin LH 2011-1.     Bulletin LH 2012-01


FINANCIAL REGULATION
Illinois amended the corrective order regulation on the standards used to determine if an insurer is in hazardous financial condition to conform with the NAIC model regulation.     Rule 1250+

Kentucky amended its annual audited financial report requirements.     Regulation 806 KAR 3:170

Oregon amended its rule on required forms for annual financial statements for 2011 and added information on how to inspect the NAIC published instructions and forms.     Rule OAR 836-011-0000


GROUP HEALTH
Pennsylvania issued a notice indicating that effective March 21, 2012, companies must file rates for small group accident and health insurance policies.     Notice 2012-04


INTERNAL AND EXTERNAL REVIEW
Arkansas amended its rule concerning external review.     Rule 76

Colorado reissued Bulletin No. B-4.20 providing guidance to health carriers for the required reporting of the number and outcomes of second level internal appeals and provides the number and outcomes of independent external review appeals.  This bulletin provides a description of the information required to be reported.     Bulletin No. B-4.20


MISCELLANEOUS
Arkansas notified all domestic insurers of the required use of the NAIC Accounting Practices and Procedures Manual as of March 2012.     Bulletin 1-2012

Colorado amended its provisions related to certificates of authority.     Rule 2-1-7

Colorado repealed its rule regarding the minimum requirements for alien insurers to obtain a certificate of authority to conduct business in Colorado.     Repeal of Rule 2-1-4

Delaware raised the amount paid by all insurance companies licensed in the State of Delaware for the funding of the Delaware Fraud Prevention Bureau from $500 to $750.     Senate Bill 80

Rhode Island issued a bulletin regarding public access to rate and policy form filings.  The bulletin advises that there is one SERFF terminal available for public access and specifies that an appointment must be made to use that terminal.     Bulletin 2008-7 (Amended)

Rhode Island notified insurers that all special reports are required to be filed electronically, including the contracted insurance producer report.     Industry Alert 2012-1

Rhode Island repealed its regulation on the activation of a domestic insurance charter.     Repeal of Ins. Reg. 61

Tennessee issued a bulletin presenting the Insurance Division's interpretation of the circumstances under which electronic mail messages in place of physical mailings constitute effective notice to policyholders.     Bulletin Dated January 26, 2012

Texas repealed and repromulgated its rule on filing annual and quarterly statements.     Repeal Of Rule 28 TAC 7.68, Rule 28 TAC 7.68


MISCELLANEOUS - HEALTH
Alaska issued a bulletin requiring all health insurers to complete and return the annual survey of health insurance statistical information by May 1, 2012.  Stop loss insurance must be reported on the survey as well.     Bulletin B 12-01

Colorado adopted a new regulation to ensure health carriers are providing coverage for contraception in the same manner as any other sickness, injury, disease or condition is otherwise covered under the policy or contract.     Regulation 4-2-38

Colorado provided guidance for the use of the required prescreening questionnaire to all carriers issuing individual health benefit plans on or after January 1, 2012.     Bulletin No. B-4.41

Delaware amended its regulation on the consumer data comparison of health premiums.     CDR 18 1300 1314

Indiana issued a bulletin to accident and sickness and HMO insurers to clarify the interest rate to be paid for failure to pay a clean claim.     Bulletin 190

Indiana issued a bulletin to all health insurers and HMO's writing accident and sickness insurance providing guidance on extending insurance coverage for children up to age 26.     Bulletin 189

New Jersey adopted a law that requires health insurers to cover medical expenses and prescription drugs used in treatment of sickle cell anemia in certain health plans.     AB 1120


MISCELLANEOUS - LIFE
Montana amended its rule on valuation of life insurance policies.     Rule 6.6.6705+

New York amended its law pertaining to the treatment of qualified financial contracts in an insurance insolvency proceeding and clarified that no person may be stayed or prohibited from exercising certain rights other than a right against an insurer licensed to write financial guaranty insurance.      Assembly Bill 8903


PATIENT PROTECTION AND AFFORDABLE CARE ACT
Colorado issued a bulletin intended for all non-grandfathered individual and group health benefit plans, issued or renewed on or after August 1, 2012.  It advises carriers of the new federal requirements for women’s preventive health services including contraceptive coverage.     Bulletin No. B-4.42


PREMIUM TAXES
Nebraska issued a notice clarifying and issuing instructions on the required method of submitting premium tax filings beginning with calendar year 2012.     Notice 2-3-2012

PRE-NEED
Nevada issued a bulletin to identify the information that must be included in a quarterly financial report from the trustee of a pre-need trust and guidance on how to submit the report.     Bulletin 12-001

Texas amended its prepaid funeral requirements, which among other things, adds a new section which contains requirements regarding package sales of prepaid funeral contracts.  It also adds materials that must be disclosed along with a proposed prepaid funeral benefits contract regarding how a purchaser can make consumer inquiries and complaints.     7 TAC § 25.3 and 7 TAC § 25.9


PRODUCERS
Hawaii announced it has updated its requirements for producer appointments by creating a new category for variable on the notice of new appointment form.  Life insurance appointments are no longer required for producers selling variable.     Memorandum 2012-2LIC

Kentucky issued an Advisory Opinion concerning insurer collection of commission payments and describes certain practices that are contrary to Kentucky law and public policy.     Advisory Opinion 2012-01

Kentucky removed the limitation on the number of times an applicant for producer licenses may take examinations.     Regulation 806 KAR 9:070

Maryland issued a release warning insurers of a false insurance administrative website offering licensing renewal services.  The website tells users to run an executable file (.exe) to renew their licenses and is not in any way affiliated with the Maryland Insurance Administration.  Running the file may cause severe damage to a computer.     Revised Release February 15, 2012

New Hampshire issued a bulletin that outlines the Insurance Department's position on producer involvement in health care provider prompt pay discount arrangements.     Bulletin INS 12-005-AB

New Jersey adopted a new rule requiring the utilization of the national insurance producer database of the NAIC (through the National Insurance Producer Registry), or any other equivalent uniform national database, for the licensure of an individual or entity as an insurance producer and for the renewal of such license.     Rule 11:17-1.3

North Carolina issued a memorandum regarding 2012-2013 appointment renewals advising that the appointment renewal bill is now ready to pay on-line at www.nipr.com for companies with active North Carolina appointments.  Payment is due by April 1, 2012.  The memorandum also advises that the Department has posted special instructions for payment and FAQ's on the Department's website.     Memorandum dated 2-1-2012

Utah adopted a rule to implement the continuing education requirements for the defined contribution market.     Rule R590-142-1+


RISK BASED CAPITAL
Texas amended and updated its risk based capital requirements for life insurance companies, fraternal benefit societies and HMOs.     Rule 28 TAC §7.402


SUITABILITY
Kentucky amended its regulation that relates to the prohibited use of misleading certifications and designations in the sale of insurance products, in particular life and annuity products.     Regulation 806 KAR 9:020

Washington adopted a new rule that establishes standards and requirements for the use of senior-specific certifications and designations in the sale of life insurance and annuities.     Rule 284-17-605


 It’s Not Advertising Review Overload, It’s an Opportunity!

Is your Advertising Compliance Review Team bogged down reviewing web pages and blocks of “tweets” along with the usual assortment of lead letters, marketing emails and direct mail campaigns? Perhaps you have never called on First Consulting to help with your advertising compliance review. (Follow the link to learn more.)  

Here’s  your opportunity to find out how experienced, “user-friendly” and helpful our staff members are. If your “overload” is chronic, we can even set you up on a monthly retainer status to help level out the floods and trickles.

We can provide a little help or a lot – Co-Sourcing is what we call it. Where you stay in control of the process while using this opportunity to tap into the experienced help you want


Jerry Wickersham                                                 C.J. Rathbun
jerry.wickersham@firstconsulting.com             CJ.Rathbun@firstconsulting.com  
816-391-2743                                                      816-391-2740

 


 
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We’ll gladly put on our work gloves and apply our expertise to help you tame the task and finish that “long row” faster and more easily. Read more here Operational Compliance or contact us today to see how much we can assist you.

 

C. J. Rathbun, FLMI, CCEP, HIA, AIRC
Senior Consultant
800-927-2730 X 2740
CJ.Rathbun@firstconsulting.com