Life and Health News
October 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 COMPENSATION
New York's Insurance Department adopted a rule to increase the maximum training allowance subsidy limits to reflect inflation for certain Life Insurance and Annuity business. 2nd Amendment to Regulation 50 (11 NYRCC12)
ANNUITIES / ANNUITY CONTRACTS
Colorado has amended its regulation concerning Best Interest Obligations and Supervision in Annuity Transactions. Regulation 4-1-11, 3 CCR 702-4
CREDIT FOR REINSURANCE
New Jersey amended and adopted a new Credit for Reinsurance rule. This ensures that non-United States insurers domiciled in a foreign jurisdiction subject to covered agreements are not subject to treatment less favorable than that of insurers that are domiciled, licensed, or admitted to do business in New Jersey. NJAC 11:2-28.7E +
FILING REQUIREMENTS / PROCEDURES
California's Insurance Department provided a notice that all corporation applications and similar filings must be filed by October 21, 2022, in order to be approved by year-end 2022, or in the case of a holding company application, no later than November 18, 2022. Notice dated August 18, 2022
South Carolina issued a bulletin for all insurers licensed to transact long-term care insurance concerning new filing requirements. Each rate filing must contain a certification that the insurer sent a proposed rate increase letter to the policyholder within 30 days after the date of the filing. The letter itself must also be included in the filing. Bulletin 2022-09
FRAUD / ANTI-FRAUD
California enacted legislation requiring an agent or broker to use a specific electronic form to submit notification of known or suspected fraud. In addition, agents or brokers are required to use an electronic form to report suspected fraud that may be in the application submitted to the carrier. Agents must complete a one-hour insurance fraud course. SB 1242
HEALTH INSURANCE - COMPREHENSIVE
Arizona issued a bulletin to clarify that all medical policies must ensure coverage, as an essential health benefit, for biomarker testing for diagnosis, treatment, management and monitoring of a disease or condition. Bulletin 2022-02
New Mexico issued a bulletin clarifying that cost-sharing requirements are prohibited related to testing or delivery of health care related to Monkeypox and other declared public health emergencies. The Federal government declared monkeypox a public health emergency in August 2022. Bulletin 2022-017
New Mexico's Insurance Department notified all major medical health insurance plans that cost sharing is prohibited for contraceptives, contraceptive services, and PrEP. Additionally, prior authorization for contraception and contraceptive services is not permitted. The bulletin also provides a mandatory PrEP endorsement. Bulletin 2022-016
MARKET CONDUCT
Federal Trade Commission amended its Telemarketing Sales Rule by updating the fees charged to entities accessing the National Do Not Call Registry. 16 CFR Part 310
Texas' Insurance Department amended the criteria relating to emergency cease and desist orders in its administrative code. 2022-7388
MISCELLANEOUS
Connecticut's Insurance Department provides guidance to domestic insurance companies on managing the financial risks of climate change. Bulletin FS-44
Federal Department of the Treasury's Office of Foreign Assets Control (OFAC) amended the Cyber-Related Sanctions Regulations and reissued them in their entirety. The final rule includes additional interpretive guidance and definitions, general licenses and other regulatory provisions that provide further guidance. 31 CFR Part 578
Louisiana's Insurance Department incorporated by reference the current edition of handbooks, guidelines, forms, and instructions adopted by the NAIC. LAC 37:XIII.16101, Regulation 112
MORTALITY TABLES
Louisiana amened Regulation 84 to update the appropriate mortality tables for life insurance, particularly minimum reserve liabilities and nonforfeiture benefits, in recognition of the Standard Valuation Manuals adopted by the NAIC. LAC 37:XIIII.10701, Regulation 84
PHARMACY BENEFIT MANAGERS
Oklahoma revised the Pharmacy Benefit Manager rule to change the PBM reporting date from March to May of each year. In addition, the annual financial statement that is required to be filed must now be audited by an independent certified public accountant. 365:25-29-8
RESERVE VALUATION
District of Columbia's Insurance Department promulgated a Term and Universal Life Insurance Reserve Financing rule that conforms to uniform, national standards governing reserve financing arrangements pertaining to life insurance policies containing guaranteed nonlevel gross premiums, guaranteed nonlevel benefits and universal life insurance policies with secondary guarantees. 26A DCMR 2852
Montana's Commissioner of Insurance adopted a new regulation pertaining to Term and Universal Life Insurance Reserve Financing. ARM 6.6.6720+
TAX CREDITS
Oklahoma's Insurance Department adopts a rule regarding the reduced premium tax rate of key person life insurance purchased by an employer on the life of an owner, top executive, or other employee. Rule 365:25-31-1, 2
UNCLAIMED PROPERTY
California passed a law allowing the Controller to waive fines for untimely reporting by persons holding unclaimed property in certain circumstances. AB 2280