Regulatory Roundup: Moving Resident States, Wisconsin Healthcare Regulation, Wyoming Scams

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. 

Changing your resident state

A cross-country move is miserable enough without the added stress of trying to coordinate your new resident license. 

Should you get a nonresident license in your new state? Would that make it easier to get a resident license? Or would the state require a “downtime” in sales while they cancel your old nonresident license and instate a resident license? Or does your new resident state require your old resident state to send a verification of your resident license forfeiture in that state? Or should you just go through the process of sitting for the new state’s licensing exam like a total noob?

Really, these and other questions complicate the process of moving from one state to another, but in the last few years, many state administrators have worked to make the process less arduous.

Nebraska and Illinois are both adopting processes that are somewhat more standardized. Beginning March 14, 2025, both states are exempting applicants from having to take a new licensing exam if they’re applying for a resident state license within 90 days of their former resident state’s license being canceled. And, if they hold a nonresident license in the new state, that state will review if they can easily translate that into a resident license. 

Previously, both states automatically rejected nonresident licensees who applied for resident licenses, requiring them to cancel their nonresident licenses before applying for residency.

Wisconsin Gov. Tony Evers taking big swings on healthcare insurance

During a February Biennial Budget Message, Wisconsin’s governor took aim at healthcare insurers, citing consumer frustration with delays in care and confusing pricing and coverage requirements. 

According to a news release from the governor’s office, the proposals include:

• Making Wisconsin the first state to start auditing insurance companies for their healthcare claims denials.
• Requiring insurers to create transparent lists to tell consumers which procedures and treatments require prior authorization.
• Formalizing maximum wait times for scheduling appointments and a mandate that health insurers’ coverage networks include practices that require the least amount of travel, especially for rural consumers.
• Banning pre-approvals for in-patient mental health services.

“Wisconsinites aren’t getting a fair shake when it comes to healthcare, and I want to change that. So, first things first: I want to make Wisconsin the first state in America to start auditing insurance companies over denying healthcare claims,” said Evers in his speech. “If an insurance company is going to deny your healthcare claim, they should have a darn good reason for it. It’s frustrating when your claim gets denied and it doesn’t seem like anyone can give you a good reason why. So, here’s how I propose we fix that: under my plan, if an insurance company is denying Wisconsinites’ claims too often, we’re going to audit them. Pretty simple.” 

Auditing claims denials is certainly a bold proposal, but Wisconsin legislators will quite likely have their own considerations for how to best regulate the insurance industry.

Hole in Won insurance scam: #winning

Wyoming Department of Insurance officials are taking one man to court after he was indicted for six counts of wire fraud, scamming nearly $1 million out of Wyoming citizens.

The man in question didn’t have an insurance license, nor did he represent a legitimate insurance carrier. He marketed insurance under the business name Hole in Won to sell insurance covering prize money for different fundraisers. 

One complaint against him said he sold insurance for a fishing tournament, and, when a prize-winning fish was caught, he ghosted the policyholder. All told, he stands accused of collecting about $850,000 in premiums for awards he never paid out.

Other state regulatory changes

Alaska updated its surplus lines placement list, but then also had to update codes for how to report those approved placements.

Connecticut boasted in February that, with data in from 2024, the state’s captive insurer market has grown by 17 percent, adding nine new captives.

Colorado issued bulletins for mandatory health insurance coverage requirements for preventative breast cancer screening and for annual certification requirements for carriers participating under the Paid Family and Medical Leave Insurance Program. The state also re-adopted an annual attestation requirement for insurance carriers to affirm to the state commissioner’s office that they’re complying with annual reviews and reporting requirements that govern prior authorization procedures. The state also hosted a 3-credit-hour in-person course for investment adviser representatives March 12.

Delaware released the Department of Insurance’s year in data for 2024, and we’ll hit you with a sampling of numbers: The state helped 52,931 policyholders find insurance during the Open Enrollment for 2025 Plan Year, processed 5,223 complaints and inquiries, saved Medicare recipients an estimated $2.21 million thanks to 4,864 Medicare-specific counseling sessions, interrogated 43 insurers, conducted 25 Level 1 market analyses, and collected $1.17 million in insurer fines.

Florida CFO Jimmy Patronis issued an official letter to Elon Musk to direct the U.S. Department of Government Efficiency to audit university grants for censorship funding.

Guam announced its appointment renewal period will run April 1 through June 30, 2025. Terminations are due by March 25. Or else.

Iowa allows business entity public adjusters (aka, public adjuster agencies or firms) to apply for nonresident and resident initial and renewal licenses electronically via the National Insurance Producer Registry (NIPR) beginning March 14. If you already use AgentSync, that also means you can submit in-app, you lucky ducky ☘️. 

Louisiana opened its lottery registration for homeowners seeking a Louisiana Fortify Homes Program Grant from Feb. 12 to 16. In just those few short days, it was inundated with applications from homeowners seeking to be one of the 1,000 participants randomly selected for up to $10,000 in home hardening grants.

Maine issued a notice to its nonresident adjusters to remind them that, prior to the state’s October renewal deadline, they need to review whether they have a resident state license or whether they’re operating off a designated home state (DHS) license. The reminder directs adjusters who believe their DHS is incorrect to contact the state and “get right” before renewal time.

Michigan has suspended not one, but two nonresident licenses of insurance producers for failing to report actions taken against them by FINRA. Another producer had his license revoked after an insurance company flagged his applications for inconsistancies and found he was submitting duplicated policies to multiple carriers and then canceling during the “free look” period. The state also revoked the license of a producer who submitted fraudulent apps, including applications with false addresses allegedly submitted by someone who is incarcerated, and multiple life insurance applications for policies on family members (pretending not to be related).

New Mexico has joined the stampede of states that now allow people to send primary name changes through NIPR.

New York Excess Line Association leadership issued a bulletin reminding members they must comply with cybersecurity regulation by April 15, 2025.

North Dakota requires producers holding surplus lines licenses to renew those licenses every year by April 30. The renewal application is open and may be filed online (along with a $25 fee) via NIPR. Or, for AgentSync customers, you can submit from within the Manage platform.

Oklahoma announced National Association of Insurance Commissioners (NAIC) President Jon Godfread appointed Oklahoma Commissioner Glen Mulready to the chair of the Health Insurance and Managed Care (B) Committee and vice-chair of the American Indian and Alaska Native Liaison Committee. The Oklahoma Insurance Department also launched a pilot for home hardening grants March 3, 2025, and issued a cease-and-desist order to a company selling auto warranties (which is considered unlicensed insurance sales in Oklahoma). A bulletin also alerted those working in auto insurance and health insurance of rule changes to audits and other regulations and alerted industry members to brush up on their understanding of rebating laws.

Pennsylvania updated the state list of eligible surplus lines insurers in February.

Tennessee issued Bulletin 25-01 to inform surplus lines carriers, or what they call nonadmitted carriers, that they must file information on premiums for surplus lines business in the state starting with policies issued in 2024 and moving forward. Carriers can file via the Surplus Lines Information Portal (SLIP).

Texas announced that, beginning with 2024 reporting (which was due at the beginning of March), individual surplus lines brokers and agents aren’t required to file “zero” reports, although surplus lines insurers still should.

Washington issued a warrant for a producer who stole $424,107 in premiums from clients. In case you forgot, theft is illegal.

Wisconsin is boasting the state’s health insurance Marketplace open enrollment hit a new high of 313,579 enrollees, nearly a 50,000-person improvement.

Stay on top of regulatory changes with AgentSync

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. If you’re looking for a solution that builds regulations like these into your distribution channel management workflows automatically, AgentSync can help. See us in action or talk to one of our experts today.