

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, instead, as 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.
“Not all Florida insurers” raising rates
The Florida Office of Insurance Regulation (OIR) Commissioner Michael Yaworsky is crediting the state’s legislative reform package from late 2022 with positive trends in the property insurance market there.
According to a news release from the OIR, rate filings for 2024 show the first decrease in premiums in years. More admitted insurers are taking on policies that are transferring out of the state’s FAIR plan, Citizens Property Insurance Corporation. Perhaps most promising of all, 10 carriers filed a 0 percent increase on rates, and eight companies adjusted their rates downward.
“As Insurance Commissioner, my top priority has been increasing protection for Florida’s consumers and today’s announcement demonstrates Governor DeSantis’ ongoing commitment to ensuring a strengthened and reliable insurance market for policyholders,” said Yaworsky in the news release.
Meanwhile, news reports expose that many carriers are still hiking rates, with multiple carriers seeking rate increases just under the 15 percent level that triggers a public hearing. Yaworsky has begun calling for public hearings for insurers that have multiple 14+ percent consecutive rate jumps.
According to the Tampa Bay Times, “Out of 134 rate requests since 2022, the most commonly sought increase? 14.9 percent.”
Utah takes issue with being blamed for premium increases
Utah issued a bulletin in May expressing displeasure with insurance producers and businesses in the state that threw the state insurance department under the bus for premium increases.
The bulletin notes the Utah Insurance Department is receiving an increasing number of consumer calls from state residents who are angry about their rising rates, and whose producers or insurers said the state was the reason for rising rates.
“Please remember that:
- The Department does not require rate increases;
- Insurers must file and justify their rates; and
- The law prohibits a licensee from “representing, either directly or indirectly that the department, the commissioner, or any employee of the department has approved, reviewed, or endorsed any marketing program, insurance product, insurance company, practice, or act.” Utah Admin. Code R590-154-7.”
In a further reminder that honesty really is the best policy, the department asks in the bulletin that producers and insurers alike accurately explain the reasons behind premium increases. It also warns that “The Department may penalize a licensee who states or infers that the Department is the cause of a rate increase.”
Louisiana aims to reform personal lines market
Louisiana Insurance Commissioner Timothy Temple has issued a news release with his support for several legislative reforms designed to reduce premium prices for consumers and fix some of the inflationary gaps in the insurance market.
Temple’s news release urges Louisiana legislators to pass auto insurance reforms that would increase transparency for third-party litigation funding and limit damages in auto claims court cases.
Reforms also aim to lower costs for Louisiana residents who rely on the state’s FAIR plan, Louisiana Citizens, by reducing the higher fees that apply to coastal residents and limiting “bad faith” fees.
“While bad faith penalties may encourage profit-driven insurers to act in good faith, Citizens is not a for-profit insurer. Because Citizens is ultimately backstopped by all Louisiana policyholders, burdening Citizens with excessive penalties means we all pay the price if Citizens fails,” Temple notes in the news release.
Other state regulatory changes
Alabama has rescinded a bulletin from 2018 that concerned short-term limited duration plans and independent, non-coordinated excepted benefits coverage. Thanks to new rules from the federal Department of Health and Human Services, the Department of Labor, and the U.S. Treasury, carriers offering these kinds of plans have new disclosure requirements and limitations. Alabama is requiring all carriers that previously submitted rates and forms for approval to resubmit to the state for a compliance review with federal standards immediately via SERFF.
Alaska is collecting data on the state’s reinsurance program, which was formed under an Affordable Care Act 1332 waiver and granted federal funding. The state’s original waiver from 2018 was granted to run through 2027.
Colorado announced one of the bigger health insurers and a state hospital system have resolved disputes and formed a five-year contract, ending a stalemate the state earlier decried as a squeeze on consumers.
Delaware issued a bulletin to notify P&C carriers that market policies in the state that the DOI updated its survey. Carriers were supposed to complete the survey by Feb. 1, 2024, but some of them didn’t and the state would like to remind them that requirements are… required. Health insurers in the state also got a reissued bulletin about a survey the state required them to complete in September 2023: “The Department has determined that some carriers did not comply with this requirement, which is a matter of concern. The Department now urges any carriers who failed to submit the survey to do so immediately.”
Georgia has updated its rules for online continuing education, so a producer can now earn up to 12 hours of credits in a given period.
Guam producer, business entity, and insurance company license renewal deadlines are moving from July 1 to June 30, as are continuing education deadlines for producers.
Idaho is now allowing individuals and business entities to process primary name changes via NIPR.
Indiana has published FAQs related to the Department of Insurance’s implementation of new annuity standards.
Louisiana is implementing changes from 2023 legislation that will align its annuities standards with the NAIC Model. The state has also announced its agency appointment renewals, with terminations due June 26, 2024, and invoices open from July 1 to Aug. 1, 2024.
Massachusetts has issued a bulletin reminding insurance carriers, producers, and all the people in between that inducements, rebates, or any other special favors or advantages outside of an insurance contract extended to someone purchasing insurance are illegal in the state. I.e., if you do something to sweeten the purchase besides the straight-up contract terms, you can get in trouble.
Michigan Department of Insurance and Financial Services Director Anita Fox announced her support for newly signed legislation that requires state-regulated health insurers to cover mental health services to the same level they must cover physical health services. Mental health parity, one loves to see it.
Minnesota Department of Commerce officials are cracking down on mental parity for healthcare coverage. The department issued a consent order with a major health insurer in the state to require the carrier to revamp mental health coverage policies.
Oklahoma Insurance Commissioner Glen Mulready used his monthly column to predict hard insurance markets for businesses and consumers alike. That’s some sunshiney optimism from the Sooner State.
South Carolina is joining the cohort of states allowing individual producers and business entities to process primary name changes through NIPR.
South Dakota released the Department of Insurance newsletter, including features of state legislative changes that affect insurance, such as new tools for solvency standards and a revision to the state’s due process for license violations.
Vermont is participating in the NAIC’s climate data call, helping regulators get a handle on just to what extent the insurance industry is exposed to the vagaries of climate change.
Washington announced the state’s new premium change transparency rule is in effect as of June 1, 2024. Now, insurance carriers that increase premiums for auto and homeowner policies will need to disclose concrete reasons for premium increases to their policyholders in plain language. In the meantime, the state reports 13 health carriers have applied to increase rates an average of more than 11 percent.
HHS (the Health and Human Services Department of the U.S. government) has made changes to reproductive health information protections under the Health Insurance Portability Act of 1996 (HIPAA) Privacy Rule. Changes include greater protection for patient-provider privacy.
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.