Life and Health News
August 2022
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!
AGENT / PRODUCER CONTINUING EDUCATION
Nebraska's Director of insurance notified all licensed producers that the proctor requirements for online self-study continuing education courses are eliminated for courses approved in Nebraska. Notice dated July 25, 2022
AGENT / PRODUCER TERMINATION
Wyoming's Insurance Department reminds insurers and producers to follow specific notification requirements when an insurer terminates a producer for any reason. Memorandum dated June 8, 2022
CORPORATE GOVERNANCE
New York advises domestic and alien insurers that they may store books and records electronically, including in the cloud, on an internal server hosted by the insurer, an affiliate, or externally with a third-party service provider. However, the books and records must be easily accessible from the insurer's principal office in New York and meet certain other requirements. Circular Letter 9 (2022)
CREDIT FOR REINSURANCE
Massachusetts incorporated the latest revisions to the NAIC Credit for Reinsurance Model Regulation relative to reciprocal jurisdictions. 211 CMR 130.00
Oklahoma adopted the NAIC Model Law on Credit for Reinsurance. OAC 365:25-7-65
DISASTER / CATASTROPHIC EVENT
Washington's Insurance Commissioner extended the Emergency Order for COVID until September 4, 2022, to ensure access to health care services. Emergency Order 21-02
DISASTER PREPAREDNESS
New York notified all life, accident and health, fraternal benefit societies, student health plans, and others of expectations regarding disaster planning, preparedness, and response by the life and health industries. Each carrier must submit a disaster response plan to the Department by October 7, 2022, with questionnaires covering business continuity and disaster response. Circular Letter 2022-11
DISCRIMINATION
Florida passed a law prohibiting life insurance, disability insurance, credit insurance, industrial life, and long-term care insurance policies from discriminating against living organ donors. HB 1099
Virginia approved changes to legislation prohibiting discrimination based on status of an individual as living organ donor. HB 421
West Virginia enacted legislation prohibiting discrimination in organ transplantation process. SB 647
FILING REQUIREMENTS / PROCEDURES
Hawaii is reducing its filing fees for certain form filings and rate filings to 50% of the prior fees for one year. Memorandum 2022 - 6R
FINANCIAL REGULATION
South Dakota updated its Annual Statement Instructions, Financial Condition Examiners Handbook, Manual of Investment Analysis, Accounting Practices, and other manuals to the current NAIC editions. Rule 20:06:12:07
HOLDING COMPANIES
Louisiana revised its holding company Law to provide for a group capital calculation, liquidity stress test, and continuity of essential services and functions provided by affiliates. Other requirements are provided. HB 715
Pennsylvania amended its holding company law to provide group capital calculation exemptions, standards and management, and group calculation and liquidity stress requirements, among other changes. SB 1222
INDUCEMENTS
Ohio's Insurance Commissioner sets the maximum amount of $250 per policy per year or calendar year for carriers, agents, or third-party administrators to offer certain gifts or services to policyholders and not be considered a rebate or inducement. This applies to offering noncash gifts, items, or services, including meals or charitable donations in connection with the marketing sale, purchase, or retention of insurance contracts. Bulletin 2022-04
MISCELLANEOUS
Delaware updated its address to submit requests under the Freedom of Information Act. The Department prefers that carriers, producers and citizens submit requests through the department website. Forms and Rates Bulletin 34
MISCELLANEOUS HEALTH / ACCIDENT
California reminds insurers of their current obligations to cover abortion and abortion-related health care services in the wake of the U.S. Supreme Court decision in Dobbs v. Jackson Women's Health Organization. Bulletin 2022-7
Delaware passed a law which prohibits carriers from increasing premium to a health care professional or organization or taking other action for performing or assisting in reproductive health services that are legal in Delaware for a person who is from out of state. HB 455
Louisiana's Department of Health amended a rule to allow coverage of telemedicine/telehealth services provided through an interactive audio system without the requirement of video as required in the COVID Emergency Rules to continue permanently without restriction. LAC 50 I.501
New Mexico adopted amendments concerning standards for Accident-only, Specified Disease, Hospital Indemnity, Disability Income, Supplemental, and Non-Subject Worker Excepted Benefits effective July 1, 2023. Rule 13.10.34
MISCELLANEOUS LIFE / ANNUITY
Idaho clarifies the reporting of reserve financing transactions specific to reinsurance involving term life insurance or universal life with secondary guarantees. The version of the most current Accounting Practices and Procedures Manual and the Valuation Manual are set forth. Bulletin 22-06
NONFORFEITURE
Michigan amended its standard nonforfeiture law for individual deferred annuities. The interest rate used in determining the minimum nonforfeiture rate decreased from 1% to 0.15%. SB 624
PRE-NEED CONTRACTS
Virginia amended provisions to prohibit the face amount of any life insurance policy issued to fund a pre-need funeral contract to be decreased over the life of the life insurance policy except where the policies have lapsed due to nonpayment of premiums or have gone to a nonforfeiture option that lowers the face amount as allowed in the policy provisions. SB 679
REGULATORY REPORTING REQUIREMENTS
Illinois revised Biographical Affidavits to require they contain certain specified information. The Illinois Department will accept the NAIC form for a new domestic company, for foreign or alien companies applying for a certificate of authority, newly elected or appointed executive officers of a domestic, foreign, or alien company within 30 days of the change. 50 Ill. Adm. Code 925.10 to 40
REINSURANCE
South Dakota amended its Reinsurance law. It adopted the actuarial method to determine the required level of primary security, certain requirements to obtain credit for reinsurance, and others. Rule 20:06:30:14
UTILIZATION REVIEW - HEALTH CARE
New York reminds insurers, organizations that write Accident and Health insurance, utilization review agents, and health care providers of the applicability of utilization review requirements and recommended best practices. Circular Letter 2022-8