Odd Ball
ARIZONA
In response to consumer complaints about annuity sales
and investment transactions, the Arizona Department of
Insurance now offers a “Consumer Guide to Annuities for
Seniors.” It is available online or by calling
602.354.2499. www.id.state.az.us
ARKANSAS
Approves a 12.8% decrease in workers comp rates
effective July 1, 2008—a 52% decrease since 1995. Rate
reductions are optional for insurers. >> Smaller
hospitals in Arkansas have asked Insurance Commissioner Julie
Benafield Bowman to revise her interpretation of a law
governing insurer payments to hospitals. They say their
payments are less than reimbursements to large hospitals and
sometimes don’t even meet costs. Bowman is expected to
make a decision in the next couple of months.
www.insurance.arkansas.gov
CALIFORNIA
Commissioner Poizner announces emergency regulations
governing California’s prior approval insurance rate
system. The rules are intended to make the rate filing process
more efficient and accurate while increasing transparency. The
emergency is necessitated, says the commissioner, by an
anticipated spate of prior approval filings this summer as a
result of last-minute efforts to comply with the Auto Rating
Factor deadline of July 14. At least one consumer group fears
the emergency regulations will allow rate hikes and not enforce
previous mandates for investment in poorer communities.
>> The California Earthquake Authority (CEA) begins using
the new Uniform California Earthquake Rupture Forecast model,
which standardizes the measurement of seismic risk throughout
the state. The next CEA rate review this summer will rely on
the new model. www.insurance.ca.gov
COLORADO
The state House Business Affairs and Labor Committee
approves H.B. 1407, which not only increases maximum penalties
up to 500% against insurers judged to unfairly deny claims, but
also eases the insurance commissioner’s standard for
evaluating whether claims were unfairly denied. It moves from
determining willful, wrongful and reckless behavior on behalf
of insurers to assessing insurer actions as unreasonable.
Additionally, the bill allows people whose claims are denied to
collect up to twice actual damages. The bill still must go
through the House Appropriations Committee.
www.dora.state.co.us/insurance
CONNECTICUT
The state senate approves a first-of-its-kind U.S. law
allowing small businesses to join with the state in offering
401(k) employee retirement plans. Advocates hail the plan as a
means of saving employers 50% in administrative costs and
bringing retirement plan availability to under-served workers.
www.ct.gov/cid/site
FLORIDA
An order to stop Allstate agents from writing new
business is rescinded by Florida’s 1st District Court of
Appeal, which blames a clerical error that allowed the
order’s premature release in violation of operating
procedures. Allstate was suspended in January for allegedly
failing to comply with subpoenas for documents on pricing.
>> Senate Bill 2860, which passed the Senate in April and
has the insurance commissioner’s support, mandates that
property insurers use the “file and use” filing
procedure for rate changes that exceed the most recently
approved by the Office of Insurance Regulation, extending its
effective closing from the end of 2008 to the end of 2011.
www.floir.com
GEORGIA
Commissioner John Oxendine announces gubernatorial run
in 2010. He dropped his announced bid two years ago for
lieutenant governor after political consultant Ralph Reed
announced. Reed got caught in the federal Abramoff scandal and
lost the race. >> The state senate has sent a bill to the
governor eliminating state and local insurance premium taxes
for high-deductible health plans (HDHPs). The bill includes an
employer tax credit for enrollment in HDHPs and a tax deduction
for participating individuals. www.inscomm.state.ga.us
HAWAII
The state Intermediate Court of Appeals rules that fees
the state charged insurers were unconstitutional. Some of the
money, which is supposed to go into the state’s
compliance resolution fund in the state Insurance Division, was
diverted into the state general fund. Insurance Commissioner
J.P. Schmidt argues the decision will bankrupt the Insurance
Division by January. www.hawaii.gov/insurance
LOUISIANA
The state senate votes to allow continued payments to
insurers that begin writing homeowners policies along the
hurricane-exposed coast. The Louisiana Incentive Program
reportedly had an excess of $60 million last year and was
slated not to be extended. This bill also changes the
appropriation of unused funds, dedicating leftover money for
homeowners to offset their insurance bills.
www.ldi.state.la.us
MINNESOTA
Governor Tim Pawlenty signs bad-faith bill, S.F. 2822,
which excludes third-party bad-faith cases and punitive
damages, places a $250,000 cap on damages and $100,000 in
attorney fees, and requires proof of knowledge that a
reasonable basis for a claim denial didn’t exist before a
bad-faith claim can be brought. www.commerce.state.mn.us
MISSISSIPPI
Commissioner Mike Chaney approves an average 11% rate
reduction request filed by the Mississippi Windstorm
Underwriting Association. Reductions depend on geographic
zones, should take effect after June 1, and apply to new
policies and policy renewals. To qualify for wind pool
coverage, all new construction and reconstruction of 50% or
more must comply with International Residential Building Codes
or International Commercial Building Codes. >> Bulletin
2008-4 notifies insurers of increases in certain fees for
services provided by the insurance department. Some fee
increases are very large, including Form A Filing—rising
from $25 to $2,000—and Larger Fraternals, Preliminary to
Admission, which increases from $25 to $1,000. For information
call 601.359.3569 or go online. www.doi.state.ms.us
MISSOURI
Gov. Matt Blunt nominates Doug Ommen, Department of
Insurance director, to the Missouri Administrative Hearing
Commission, which is an independent, administrative tribunal
that decides disputes involving state agencies and other
parties. www.insurance.mo.gov
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