CMS ISSUES MEDICAL LOSS RATIO REGULATIONS

Background. Among the most hotly debated provisions of the Patient Protection and Affordable Care Act (PPACA) have been the medical loss ratio (MLR) requirements, which were intended to lower healthcare costs by requiring health insurance companies to spend less on marketing and overhead expenses and more on care. …
Read More Healthcare Update: CMS Issues Medical Loss Ratio Regulations; HHS Rejects Two State MLR Waiver Requests

Massachusetts Governor Duval Patrick signed H. 3795, which bans the use of credit-based insurance scores in the underwriting and rating of private passenger automobile insurance, into law on November 22, 2011 as Chapter 195 of the Acts of 2011.  H. 3795 amends the Massachusetts General Laws and codifies a similar credit score prohibition in current Division of Insurance Regulations. …
Read More Massachusetts Passes Statutory Ban on the Use of Credit-Based Insurance Scores for Private Passenger Automobile Insurance

In May 2011, we reported on the UK Government’s adoption of the Law Commission’s draft Bill on Consumer Insurance (Pre-Contract Disclosure and Misrepresentations). (See our previous post here). The Consumer Insurance (Disclosure and Representations) Bill (the Bill) is currently progressing through Parliament. …
Read More UK: Consumer Insurance (Disclosure and Representations) Bill Continues Its Progress Through Parliament

On 25 June 2010 (“Effective Date“), the Hong Kong Securities and Futures Commission (“SFC“) promulgated the SFC Handbook for Unit Trusts and Mutual Funds, Investment-Linked Assurance Schemes and Unlisted Structured Investment Products (“SFC Handbook“) under which all SFC-authorised funds and investment-linked assurance schemes are required to provide investors with a Product Key Facts Statement (“Product KFS“) and an offering document that satisfy a number of disclosure requirements as set out in the SFC Handbook. …
Read More Hong Kong: SFC Warns Surveillance on the KFS and Revised Offering Documents

Thomas B. Leonardi, Commissioner of the Connecticut Insurance Department, was elected as the secretary of the National Association of Insurance Commissioner’s (“NAIC”) Northeast Zone during the NAIC’s Fall 2011 meeting.  As part of this position, Commissioner Leonardi will also serve on the NAIC’s Executive Committee. …
Read More Connecticut Insurance Commissioner Elected Secretary of the NAIC’s Northeast Zone and Will Serve on the NAIC’s Executive Committee

In the case of Faraday Reinsurance Co Ltd v (1) Howden North America Inc (2) Howden Buffalo Inc [2011] EWHC 2837 (Comm), Howden sought to set aside an order allowing Faraday to serve it with proceedings out of the jurisdiction. …
Read More UK: High Court Allows Service Out of Jurisdiction for Declaratory Judgment

An inquirer recently asked the New York Department of Financial Services Office of General Counsel (the “OGC”) whether (1) lunch bought for an insurance producer by an insurer qualifies as compensation to be disclosed under Regulation 194 (effective January 1, 2011); and (2) if it qualifies, how should an insurer maintain a record of the cost of that lunch when multiple producers are present at the lunch, but only one is the binding producer?  See N.Y. Dept. of Fin. Serv. Opinion No. 11-08-01 (August 5, 2011). …
Read More Keep Those Power Lunch Receipts; the New York Department of Financial Services May Consider Such Entertainment Expenses as Producer Compensation to be Disclosed

Connecticut Insurance Commissioner Thomas Leonardi told the Connecticut legislature’s Insurance and Real Estate Committee on Tuesday, November 15th, that the Connecticut Insurance Department (the “CID”) is currently considering options to revise requirements governing hurricane deductibles.  Commissioner Leonardi reported that following Hurricane Irene, Connecticut residents filed 58,002 claims, and as of October 31st, 64 days after the hurricane, $161 million have been paid to policyholders. …
Read More Connecticut Insurance Department Considers Change in Hurricane Deductible

Andrew R. Stolfi has been appointed as acting director of the Illinois Department of Insurance (the “Department”) by Governor Pat Quinn.  Acting Director Stolfi most recently served as chief of staff and special counsel for policy and legislative affairs at the Department since 2009. …
Read More Illinois Department of Insurance Acting Director Named