State by state variations of laws, compliance protocols, industry transparency, and general regulatory cultures 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 sample platter of regulation.
Virginia warns of Russian cyberattacks
Scott White, the Virginia Commissioner of Insurance, issued a notice to Virginia businesses that cybersecurity risks have risen in the U.S. following the Russian invasion of Ukraine. American sanctions may provoke further cyberattacks.
White reminded all businesses to take a proactive response to cybersecurity, and report any suspicious cyber activity to firstname.lastname@example.org, and asked insurance and finance businesses to review state cyber guidelines.
Several states announce termination of Salvasen Health products
Colorado, Massachusetts, Minnesota, and Nevada have each announced special enrollment periods for policyholders who previously held coverage from Salvasen Health.
“Products offered through Salvasen Health are not insured health plans and Salvasen Health is not licensed to sell health insurance in Massachusetts,” said Massachusetts’s bulletin.
According to Colorado, “The Division of Insurance finds, pursuant to § 24-4-103(6)(a), C.R.S., that immediate adoption of this regulation is imperatively necessary for the preservation of public health, safety, or welfare as allowing individuals whose enrollment in Salvasen Health is being involuntarily terminated the opportunity to enroll in a health benefit plan in order to receive coverage is imperative to preserve the health of residents of Colorado.”
Minnesota announced Salvasen Health and Triada health and dental insurance plans end coverage April 1, 2022.
Nevada, too, has opened the Silver State Health Insurance Exchange, its online health insurance marketplace, for Salvasen Health and Triada plan participants.
Colorado requests improvements to policyholder experience after Boulder County fires
The Colorado Division of Insurance (DOI) released a report about the five requests they’ve made of insurers, hoping to streamline claims processes. A news release from the DOI applauded insurers’ immediate response, but said corporate action has waned in the aftermath.
“As we move further away from the fires, we are hearing consistent complaints from homeowners impacted by the fire,” said Colorado Insurance Commissioner Michale Conway, “It is those complaints that made us ask the companies to step up and do better, and overall, the companies agreed. These efforts won’t fix everything, but I view them as a necessary step in helping people to recover faster.”
- For smoke, soot and ash claims, the state is asking insurers to quickly inspect homes with visible smoke, soot, and ash damage, and continue paying additional living expense (ALE) coverage until repairs have been completed.
- The commissioner has called for insurers to pay out at least 60 percent of contents coverage for owner-occupied primary residences, without requiring a formal inventory.
- Colorado insurers should also work to streamline inventory documentation processes for those who suffered total losses, including forms that allow grouping by category, itemizing by rooms, or collecting data via interviews.
- According to the state, insurers will treat individual claims filed in the declared disaster area as a single fire loss with one deductible.
- Insurers won’t take future adverse underwriting actions based in whole or in part on a claim filed from the Marshall Fire and Straight Line Winds event.
According to the state’s news release, most of the 60-plus insurers providing coverage in the state have agreed to these requests or are working with the state toward compliance.
- Florida Chief Financial Officer Jimmy Patronis is advocating for legislation he backs, called the “Born Free” legislative package, from funding urban search and rescue teams to anti-fraud and consumer protection.
- Connecticut, Nebraska, and West Virginia’s terminations and appointment renewal deadlines are coming up!
- Louisiana will no longer require Social Security numbers for carrier appointment renewals and terminations, effective April 14, 2022, and instead will require national producer numbers (NPNs) to process these transactions.
- Washington has changed the line of authority (LOA) assignment for its three adjuster license classes; previously those submitting license information via NIPR could designate them as “no authority required,” but now independent adjusters and public adjusters will fall under a P&C LOA and crop adjusters will be assigned under a property LOA.
- Connecticut has changed the process with the National Insurance Producer Registry for Motor Vehicle Physical Damage Appraisers (MVPDs). Previously, all MVPDs were licensed with an adjuster class, but now applicants will need to apply through non-adjuster licensing processes.
- Alabama has set dates for appointment renewals for those with pre-need company appointments. The deadline to submit pre-need terminations is April 27, 2022; the period to review and pay for appointment renewals is from May 1 to Sept. 9, 2022.
- Colorado has issued an interpretive bulletin designed to provide health insurance carriers with guidance regarding new requirements for Colorado Option Standardized Plans.
- Maine has updated their Bureau of Insurance site! Loving the new you, Maine. So glam.
While these points of interest aren’t comprehensive, our knowledge of producer license and compliance maintenance is. See how AgentSync can help make you look smarter today.