Crackdown on Home Warranties, Washington Commissioner Podcast, Maryland Grapples with Key Bridge Collapse

State-by-state variations of laws, compliance protocols, industry transparency, and general regulatory culture can lend one the impression that keeping up with industry changes is a little bit like herding cats. So, what better way to wrangle some of the more localized insurance news than in a Regulatory Roundup?

On an ongoing basis, in no particular order or rank, we’re wrestling the various regulatory changes, compliance actions, and commissioner decisions into our roundup. As a disclaimer: There’s a lot going on at any given time in these here United States, so this isn’t a comprehensive picture of state-level action by any means. Think of it as, instead, a sampler platter of regulation. 

Also important to note: If we’re recapping interpretations of legal decisions, this is some armchair insurance speculation and not at all legal advice. If you need legal advice, get a lawyer. 

Georgia, Oklahoma crack down on home warranty businesses

Is a home warranty an insurance product? Today’s Regulatory Roundup reminds us that if something smells like it might be insurance, you should err on the side of caution.

Georgia is taking a home warranty company to task for failing to meet the state’s requirements for maintaining a minimum bond of $100,000 in line with the state’s requirements. While the company will remain on the hook for liabilities from current warranties, the state has prohibited it from selling or soliciting any new contracts or services in the state.

Meanwhile, Oklahoma sanctioned a company offering home warranties without the requisite authorization of the Oklahoma Insurance Department.

​​“Oklahoma consumers rely on home warranty companies to provide essential coverage. Our licensing protocols are designed to safeguard consumers and uphold ethical standards. When companies fail to adhere to these standards, we take swift action to protect consumers,” said Commissioner Glen Mulready in the department’s news release.

Mulready also cautioned Oklahoma consumers to verify a company’s licensing before purchasing home warranties or insurance coverage.

Washington Office of the Insurance Commissioner launches podcast

Insurance Commissioner Mike Kreidler has launched a new monthly podcast, OIC Answers, with information for consumers in the state. Each episode will feature a particular topic, such as signing up for Medicare or changing auto insurance rates, according to a news release from the Office of the Insurance Commissioner (OIC).

The format will feature two Public Affairs employees interviewing members of the OIC in a shortform 15-minute Q&A.

“Our Consumer Advocacy division fields hundreds of calls from Washingtonians with questions about their insurance,” Kreidler said. “I hope this new avenue for sharing information can help people learn more about their coverage and their options, not to mention our work, at their own pace.” 

The podcast is no less impressive for the fact that Commissioner Kreidler announced last year that this will be his final term as the chief insurance official of the state; he isn’t running for re-election.

Maryland anticipates commissioner turnover, asks insurance carriers to be allies in Key Bridge recovery

Maryland Insurance Commissioner Kathleen Birrane announced in mid-April that she’ll resign effective June 30, 2024. 

Birrane was appointed by Gov. Larry Hogan in 2020 from her role as a partner in private practice at DLA Piper, a global law firm. She’ll return to private practice after her resignation, and applicants for her position are welcome to apply here.

“My decision to return to private practice is bittersweet. Serving the residents of this State as the Insurance Commissioner has been a source of great joy. I am blessed to work with a remarkable team of professionals who dedicate themselves every day to keeping the Maryland insurance market sound and making sure that insurers keep their promises,” Birrane said in a news release. “But, after four incredibly intense and productive years, this is the right time for me.”

The state is still reeling from the disastrous Francis Scott Key Bridge collapse, and a bulletin from the Maryland Insurance Administration has made it clear that insurers across the state can do their part to help recovery.

“In light of the current difficult circumstances, the Insurance Administration is encouraging all carriers doing business in the State to stand in solidarity with our local communities, and make reasonable accommodations, so that individuals and businesses impacted by the reduced operations of the Port of Baltimore do not lose coverage due to non-payment of premium,” the bulletin said.

Other state regulatory changes

Alabama has issued RFPs for key department actuarial and exam services, due May 10. Vendors can learn more about the process, which will cover services for two years from Oct. 1, 2024, to Sept. 30, 2026. The state has also released the calendar dates with rate filing deadlines for 2024.

Alaska issued a bulletin to clarify the new rules around the state’s closing protection letter process for title insurers and producers.

California issued a bulletin updating the state’s export list.

Colorado Gov. Jared Polis signed legislation March 22, 2024, that will allow the state’s surplus lines insurers to file their required taxes via digital third-party systems beginning in 2025. The law specifically shouts out the NAIC OptINs filing system, which is a win for nonadmitted carriers everywhere.

Connecticut regulators issued a warning to consumers that newer vehicles or driving apps may inadvertently lead to data gatherers sharing information with their insurance carriers against their knowledge or consent.

Delaware issued a reminder to foreign insurance carriers (carriers that are organized initially in other non-Delaware states) that the Delaware Department of Insurance has a “seasoning” requirement. It’s not that oregano is illegal or anything – “seasoning” in this case is more about age and wisdom. A carrier has to have at least three years of operations under its belt, with the most recent one showing net gains, before it expands into Delaware. The state has also updated its financial responsibility forms for insurers and agents selling auto insurance in the state, and will discontinue the old ones in July. Another bulletin reminds health insurers that Delaware has changed mandatory plan coverage for breast screening and diagnostic exams.

Massachusetts now offers “no home state” renewals for individuals licensed as auto damage appraisers and individuals and firms licensed to sell motor club insurance.

Michigan announced the new cemetery/funeral assignment limit – governing how much money  an annuity or life insurance policy can set aside for funeral and burial costs – which, adjusted for inflation, is $13,460 from June 1, 2024 to May 31, 2025. The state also issued an order guiding health insurance carriers through the state’s transitional policy for the Affordable Care Act, which is extended through Dec. 31, 2025. Also up in the list of Michigan bulletins: rate filing and network adequacy standards for standalone dental plans and medical plans.

Utah has proposed a rule requiring producers to get current on new annuity suitability training requirements in the state by July 1, 2024.

Washington fined a health insurance carrier $35,000 for inadvertently billing telehealth users for cost-sharing, despite the carrier returning the overages to consumers. The company noted the mistake was thanks to a misconfiguration of the company’s technical systems. Tech matters, amirite? 

U.S. Department of the Treasury FinCEN has proposed a rule to include investment advisers under the definition of a “financial institution” as a way to close what the Financial Crimes Enforcement Network (FinCEN) says is a gap in anti-money laundering regulations.

While these points of interest aren’t comprehensive, our knowledge of insurance producer and variable lines broker license and compliance maintenance is. See how AgentSync can help make you look smarter today; head over to the Compliance Library and wrastle up some state-by-state regulation and more jurisdictional updates.