Life and Health News

January 2019

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 LICENSING AND APPOINTMENT

Washington amended the term of initial and reinstated individual licenses.  These licenses will now be valid from their date of issuance until the end of the licensee's next birth month plus one year instead of the date of the licensee's next birthday anniversary plus one year.     284-17-423


ANNUITY DISCLOSURES

Rhode Island issued a bulletin regarding annuity disclosure forms.     Bulletin 2018-18


BLOCKCHAIN

Rhode Island issued a bulletin regarding the use of distributed ledger or blockchain technology in insurance.     Bulletin 2018-17


CLAIMS / CLAIMS ISSUES

The Colorado Department of Regulatory Agencies amended its regulation to establish the requirements, process, and form to be utilized by carriers and contracted pharmacy benefit management firms for the prior authorization of prescription drug benefits effective 01/01/19.     3 CCR 702-4 Series 4-2, 4-2-49

The Kentucky Department of Insurance has issued a regulation establishing certain claim handling requirements for insurers offering health benefit plans and insurers offering limited health service benefit plans for the provision of dental-only benefits.     806 KAR 17:360


DISASTER / CATASTROPHIC EVENT

Alabama has issued a proclamation extending the previous state of emergency, declared on 10/11/18, by 60 days.     Proclamation 12-11-18

Alaska issued a disaster declaration bulletin due to the effects of the earthquake on 11/30/18.  The Division of Insurance directs carriers to provide relief to affected policyholders by offering extensions to premium grace periods of at least one week and working with policyholders in the collection of premiums. The Division encourages insurers to be flexible with possible prescription medication issues.     Bulletin B 18-15

California has issued a notice to assist health insurers in complying with the requirements of Assembly Bill 2941 regarding insureds displaced by natural disasters.     Notice dated December 10, 2018 (B)

Illinois has declared a state of disaster for Christian County whose residents may experience disruption of mail delivery and displacement from their residences and businesses due to recent storms. All entities licensed or authorized to transact insurance business in this state are hereby requested to implement the safeguards outlined in the bulletin.     CB 2018-12

North Carolina issued an order activating a disaster mediation program.  It establishes a nonadversarial alternative dispute resolution procedure forclaims arising out of damages to residential property as the result of an event for which there is a disaster declared within 60 days of the event.     Order dated 11/2/18


DISCLOSURE REQUIREMENTS

Maryland amended its regulation by allowing life insurance carriers to show zero amounts on forms numerically or as a blank space, effective 12/06/18.     COMAR 31.15.03.05


DRUG / PRESCRIPTION COVERAGE

Utah enacted legislation setting standards for medical cannabis pharmacy licenses.  Nothing in the regulation requires an insurer, a third-party administrator, or an employer to pay or reimburse for cannabis, a cannabis product, or a medical cannabis device.     26-61a-301; 26-61a-112


GROUP HEALTH

Utah issued a bulletin reminding health insurers, producers and third-party administrators of existing requirements related to health care coverage offered through an Association Health Plan.     Bulletin 2018-5


GUARANTY ASSOCIATION

Tennessee issued a bulletin regarding the Tennessee Life and Health Insurance Guaranty Association address change.  Carriers are required to update notices regarding the Tennessee Life and Health Guaranty Association with the new address.     Bulletin 18-02


LONG-TERM CARE INSURANCE

Rhode Island updated and amended several regulations concerning Long Term Care Insurance, effective May 26, 2019.     230-RICR-20-35-1+


MEDICARE SUPPLEMENT INSURANCE

Tennessee made several amendments to its regulation regarding Medicare Supplement Insurance Minimum Standards, effective February 18, 2019.     0780-01-58-.12 - .20

The Nebraska Department of Insurance adopted the NAIC's “Model Regulation to Implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act” with some notes, exceptions and additions.     210 NAC Ch. 36 s 001+


MENTAL HEALTH PARITY

New Hampshire amended its regulation regarding parity in mental health and substance use disorder benefits for group health insurance coverage.     2702.01 +


MISCELLANEOUS

Louisiana has adopted a rule to define declaratory orders and to provide for the filing and prompt disposition of declaratory orders.     LAC 37:XIII.Chapter 157


MISCELLANEOUS HEALTH / ACCIDENT

California has issued a notice alerting insurance companies that, effective January 1, 2019, short-term limited duration health insurance cannot be issued, amended, sold, renewed, or offered in California.     Notice dated December 10, 2018 (A)

The Delaware General Assembly has passed SB 227 establishing a centralized Health Care Claims Database system to enable the State to more effectively understand utilization across the continuum of health care in Delaware and to achieve the triple aim of the State's ongoing health care innovation efforts: (1) improved health; (2) health care quality and experience; and (3) affordability for all Delawareans.     SB 227

The Illinois Department of Insurance amended rule 4530.40 regarding the health carrier annual external review process. The amendment changes the annual deadline for health carriers to submit an external review report to the Director to June 1.     50 IAC 4530.40


PREMIUM TAX

Idaho issued a news release to inform all who file a Statement of Premium Taxes and Fees or Continuation Fee Statements of their new e-file system. Starting 01/01/19 these types of filings will need to be submitted electronically.     News Release 12/04/18

New Mexico issued a bulletin stating that all premium tax reports and payments must be submitted electronically through the Tritech website.  Quarterly premium tax reports and any associated estimated premium tax payments are due on April 15, July 15, October 15, and January 15 of the following year.     Bulletin 2018-17


REPORTS - ANNUAL / QUARTERLY STATEMENT

Maryland amended its regulations to align with changes to the NAIC Model Regulation #205 Annual Financial Reporting adopted in 2014. This includes, among other things, definitions and requirements for internal audit functions.     COMAR 31.05.11.02


SERFF FILINGS

Missouri issued a SERFF message stating that as of 01/01/19, filing fees will change for each company to $150.00. This applies to all life, annuity, and health filings regardless of the number of forms or attachments within the filing.     SERFF Message dated 12/07/18


UNCLAIMED PROPERTY

Tennessee amended its rule relating to the Uniform Unclaimed Property Act, effective March 4, 2019.     1700-02-01-.01