In conjunction with the Locke Lord COVID-19 task force, we are reviewing, analyzing, and compiling regulatory updates to provide clients easy access to information during this unprecedented time.  If you have any questions on the subject matter below, do not hesitate to reach out.  The information below relates to state and federal bulletins, emergency orders, pending/enacted legislation, and other related actions taken in response to the COVID-19 pandemic.

All Lines of Insurance

All States (NAIC):  On July 22, according to APCIA, the NAIC’s Accounting Practices and Procedures (E) Task Force adopted temporary accounting guidance for reporting payments to policyholders because of COVID-19 related governmental stay-at-home orders, with a limited-time exception for companies that filed policy endorsements or manual rate filings and announced before June 15 their intention to report those payments as expenses.

Michigan:  On July 22, the Michigan Department of Insurance and Financial Services issued Order No. 2020-14-M, which adds to the reasons that a personal lines policyholder may request an exception from having their credit information used in determining rates. The additional allowable exception is due to the COVID-19 public health emergency and by emergency declarations due to flooding.

Health Insurance

Vermont:  On July 21, Commissioner Pieciak released Insurance Bulletin No. 214, clarifying the obligations of health insurers to cover SARS-CoV-2 testing without cost sharing under Emergency Rule H-2020-03-E, when medically necessary or directed by the state or federal government. Self-insured or publically funded health care benefit plans offered through employers are encouraged but not required to comply with the Bulletin.

Vermont:  On July 21, Commissioner Pieciak released Insurance Bulletin No. 215, withdrawing Insurance Bulletin 211 (temporarily suspending routine provider audits, effective August 3, 2020), in order to comply with guidance regarding resumption of routine audits on August 3, 2020 by the Centers for Medicare and Medicaid Services (CMS).

Washington: On July 20, the Office of the Insurance Commissioner (OIC) published Frequently Asked Questions: COVED-19 Testing, addressed to health carriers relating to implementation of Section 6001 of the Families First Coronavirus Response Act (FFCRA). This guidance clarifies federal obligations for health insurers, including health carrier obligations toward testing criteria, billing coverage of laboratory testing, and other related items.