Notice of Proposed Rulemaking – Medicare Supplement Insurance

On October 16, 2015, the Department published a Notice of Rulemaking in the Arizona Register, (21 A.A.R. 2401, October 16, 2015).  The rulemaking proposes to amend Article 11 – Medicare Supplement Insurance, AAC R20-6-1101, to update the incorporation by reference of the NAIC Model Regulation to Implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act which includes the Genetic Information Nondiscrimination Act of 2008 (Model Regulation).  Currently, AAC R20-6-1101 incorporates the Model Regulation published in 2008.  The amended rule will incorporate the Model Regulation published in January, 2015, which corrects some deficiencies of the 2008 version.  The proposed rulemaking also amends Section 3(A)(2) of the Model Regulation to specify that the Model Regulation applies to “All certificates issued under group Medicare supplement policies, which certificates have been delivered or issued for delivery in this state including association plans.”

Anyone who wishes to request an oral proceeding on the proposed changes to AAC R20-6-1101 should contact Mary Kosinski at [email protected] or (602) 364-3471.

Rulemaking Moratorium
DOI Regulatory Agenda for 2017
Insurance Rules (Arizona Administrative Code Title 20)
Notification of Close of Record

Notification of Close of Record on Holding Company rulemaking

Notice of Close of Record: Reasonableness of Benefits in Relation to Premium

On August 18, 2017, the Department published a Notice of Rulemaking Docket Opening in the Arizona Register (23 A.A.R. 2209, August 18, 2017). On September 15, 2017, the Department published a Notice of Proposed Rulemaking in the Arizona Register (23 A.A.R. 2485, September 15, 2017). The rulemaking proposes to amend A.A.C. R20-6-607, Reasonableness of Benefits in Relation to Premium Charged, to correct some reference errors and to update the subsection governing the reasonableness of benefits in relation to premium charged with respect to individual disability policy forms.

The Notice of Proposed Rulemaking stated that the Department would schedule an oral proceeding on the rulemaking if, within 30 days after the published Notice of Proposed Rulemaking, anyone submitted a written request for an oral proceeding. The deadline for submitting a written request for an oral proceeding was October 13, 2017. However, to accommodate the Columbus Day holiday, the Department is extending the comment period which will now end on Monday, October 16, 2017 at 5:00 p.m. Once the record is closed, the Department will submit the rulemaking to the Governor’s Regulatory Review Council (GRRC) to finalize the rule.

Anyone having any questions should contact Mary Kosinski at [email protected] or (602) 364-3471.

Extension of Major Medical Transitional Policies through Calendar Year 2018

Phoenix - The Arizona Department of Insurance (ADOI) announced today that insurers in the individual and small group[1] major medical health insurance markets can choose to renew transitional policies for a policy year beginning on or before October 1, 2018, provided all transitional coverage ends by December 31, 2018.    Transitional policies are non-Affordable-Care-Act-compliant policies that have been continuously in effect since by or before December 31, 2013.  At least 6 health insurers have individual or small group transitional policies still in effect in Arizona.

This extension is the maximum extension permitted under the Insurance Standards Bulletin issued on February 23, 2017 by the Center for Consumer Information and Insurance Oversight (CCIIO), and gives insurers the option to continue the pre-2014 individual and small group policies covering approximately 70,000 Arizonans through the end of 2018.  Insurers that offer this extension of transitional coverage are required to send each policyholder a renewal notice that explains the offer to continue the transitional policy through the end of 2018 and includes information regarding any related price increase.  Insurers must also send a 90-day notice for the final discontinuation of the transitional plans.

The extension does not affect grandfathered policies issued prior to March 23, 2010.  These policies can remain in effect as long as they maintain grandfathered status.

For additional information on the Affordable Care Act, please visit the Arizona Department of Insurance website or call Consumer Assistance at (602) 364-2499. 

 

[1] Small Group refers to a policy issued to an employer who employs at least two but not more than fifty eligible employees

(ARS § 20-2301(A)(21)).

 

Insurance Professional License Number Crosswalk (MS EXCEL)

With the Department of Insurance move off of its old regulatory system to State Based Systems ("SBS"), the license number for each Arizona-licensed insurance professional (insurance producer/agent, surplus lines broker, insurance adjuster, etc.) changed. Attached is a MICROSOFT EXCEL file that contains the name, old (legacy) license number, new license number and National Producer Number for each insurance professional licensed whose license expired/expires on or after 4/30/2016. Use the LICENSE SEARCH menu option at the top of this page to view the license record for a particular licensee or company.

Bureau of Justice Assistance Offers Resource on Damaged Vehicles

Washington - The Office of Justice Programs' (OJP) Bureau of Justice Assitsance (BJA) recommended today that in light of the anticipated high volume of flood-damaged automobiles in the aftermath of hurricanes Harvey and Irma, consumers educate themselves about a vhicle's history before making any purchase decisions.  Overseen by BJA, the National Motor Vehicle Title Information System (NMVTIS) is designed to prevent concealment of flood damage and other vehicle histories. After past hurricane events, authorities reported truckloads of flooded vehicles being taken out of the impact zone where they were dried out, cleaned and readied for sale to unsuspecting consumers in states that do not brand flood vehicles. It is currently estimated that due to Hurricane Harvey and Hurricane Irma, as many as 1 million flood-damaged automobiles could potentially be passed on to unsuspecting buyers in the coming weeks and months.

The floods caused by or associated with these hurricanes have resulted in severe water damage to thousands of vehicles that can make electrical systems and airbag sensors prone to failure. Prior to purchasing a vehicle, NMVTIS allows consumers to find information on the vehicle's title, most  recent odometer reading and brand history. A “brand” is a descriptive label that states assign to a vehicle to identify the vehicle's current or prior condition, such as “junk,” “salvage” or “flood” designation. By capturing into one system specific information from multiple entities such as state motor vehicle departments, insurance carriers, salvage auto auctions, automobile recyclers, and junk and salvage yards, NMVTIS offers states and consumers protection from title fraud and potentially unsafe vehicles.

“BJA remains committed to ensuring the consumer protection benefits provided by NMVTIS,” said Acting BJA Director Tracey Trautman. “We encourage prospective purchasers to consider obtaining a NMVTIS vehicle history report and have the vehicle checked by a trusted mechanic as part of making an informed used car-buying decision.” The list of approved NMVTIS vehicle history report providers can be found on the official NMVTIS website at: https://www.vehiclehistory.gov/nmvtis_vehiclehistory.html

The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control  crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of  Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office  of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of  Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about  OJP and its components can be found at:  www.ojp.gov.