California — Consumer Premium Savings: In response to Insurance Commissioner Ricardo Lara ordering premium relief to policyholders affected by the COVID-19 pandemic, California automobile insurance companies have agreed to provide $1.21 billion in savings to drivers. That figure includes $1.03 billion in premium relief for more than 18 million policyholders for the months of March, April, and May while Californians struggled during the start of the COVID-19 pandemic, and an additional $180 million in future rate increases that insurance companies reduced in response to the Commissioner’s orders.
 
“More than $1.2 billion in premium relief and reduced future premiums represents actual savings for California policyholders, many of whom have been hit hard by the COVID-19 crisis,” said Commissioner Lara. “We are still seeing fewer accidents and insurance claims during the pandemic, and I expect the savings to keep growing. The Department of Insurance will continue our review to ensure that premium relief is adequate and fair.”
 
The premium relief per policy for the months of March through May as reported by the 25 largest insurance companies ranges from $19 to $155, depending on the cost of the policy and the company's formula for providing relief. The overall average relief per policy for the top 25 carriers is $57 or 3.63 percent of a policyholder's annual premium.
 
Approximately half the companies returned premium to drivers in the form of a refund or dividend, while the rest offered a credit against future premiums.
 
Commissioner Lara also urged insurance companies to review their recently submitted rate filings in light of the COVID-19 emergency’s effect on policyholders’ risk. As a result, dozens of auto insurance rate filings pending review by the Department of Insurance were withdrawn or significantly reduced representing $180 million in further savings for drivers compared to what insurers initially sought to charge consumers in the coming months.
 
The Department of Insurance is still analyzing reports submitted by insurance companies for the automobile market and also for commercial lines included in the Commissioner’s Bulletins and will have further data available in the future. The Department of Insurance will continue its review of all premium adjustments to ensure they are fair and adequate and reflect policyholders’ reduced risk. All insurance company submissions will be posted online. The public may view any of the submitted reports on the Department of Insurance’s website here, where new reports for the month of June and beyond will subsequently be added.
 
In addition to the new data showing savings for California auto insurance consumers, Commissioner Lara issued a Bulletin extending his previous Bulletin for insurance companies to provide premium relief for all lines of insurance for the month of June. This new Bulletin recognizes that Californians continue to be impacted by COVID-19 and requires that insurance carriers continue to evaluate changes in risk to their policyholders and apply additional savings as warranted through the remainder of the COVID-19 pandemic.
 
Commissioner Lara’s actions mean that California has taken some of the strongest steps to protect consumers from excessive rates. On March 18, as “stay at home” orders were beginning in California, the Consumer Federation of America sent a letter to all state insurance commissioners urging them to provide relief for excessive automobile insurance rates caused by the COVID-19 pandemic. According to the Consumer Federation of America, only California and New Jersey have directed companies to return premiums due to reduced risk through May.

California — Nighttime Workplace Safety: The first ever nighttime lighting standards in the nation have been written for California’s agricultural workers. California Division of Occupational Safety and Health (Cal/OSHA spokesman Doug Parker said these are people doing harvesting and operating vehicles between sunset and sunrise.

“Agricultural workers face additional hazards at night when visibility is limited,” Parker said. “These common-sense standards will enable workers to see hazards and also make them visible to operators of tractors and other equipment.”

Employers must now go to each work site and determine lighting levels and then do what is needed to improve visibility for farm workers. The standards were approved by the Office of Administrative Law and went into effect on July 1st. They will be enforced by Cal/OSHA.

Source link: Insurance Journal

Idaho — Gallagher Acquires Cunningham: Arther J. Gallagher has purchased Meridian-based Cunningham and Associates. Former owners Greg and Nick Cunningham and their staff will continue with the new company.

The terms of the sale were not disclosed.

Cunningham and Associates’ focus has been risk management, loss control and safety financing for primarily agriculture, construction, energy, healthcare, manufacturing, transportation and real estate clients in the intermountain West and around Idaho.

Source link: Insurance Journal

Oregon — Brown Extends Face Covering: Governor Kate Brown announced that Oregonians statewide will be required to wear face coverings in indoor public spaces, beginning this Wednesday July 1. The guidance applies to businesses and members of the public visiting indoor public spaces. Face covering requirements are already mandated in eight counties.

“From the beginning of the reopening process, I have said that reopening comes with the risk of seeing an increase in COVID-19 cases beyond our health systems’ capacity to test, trace, and isolate them,” said Governor Kate Brown. “Over the last month, we have seen the disease spread at an alarming rate in both urban and rural counties. The upcoming July 4th holiday weekend is a critical point for Oregon in this pandemic, and we can all make a difference.

“Modeling from the Oregon Health Authority shows that if we don’t take further action to reduce the spread of the disease, our hospitals could be overwhelmed by new COVID-19 cases and hospitalizations within weeks.

“The choices every single one of us make in the coming days matter.

“Face coverings that cover your nose and mouth play a critical role in reducing the spread of this disease because droplets from our breath can carry the virus to others without us realizing it. If we all wear face coverings, practice six feet of physical distancing in public, wash our hands regularly, and stay home when we are sick, then we can avoid the worst-case scenarios that are now playing out in other states.

“I do not want to have to close down businesses again like other states are now doing. If you want your local shops and restaurants to stay open, then wear a face covering when out in public.

“Please keep your Fourth of July celebrations small and local. We saw a lot of new COVD-19 cases following the Memorial Day holiday. Another spike in cases after the upcoming holiday weekend could put Oregon in a dangerous position.

“Oregonians have all made incredible sacrifices over the last several months that have saved thousands of lives. The actions we take now can protect our friends, neighbors, loved ones, and fellow Oregonians from this disease, and prevent the need for another statewide shutdown. We are truly all in this together.”

Oregon Occupational Safety and Health (OSHA) will take the lead, along with other state and local agencies, in enforcing face covering requirements for all covered Oregon businesses.

Washington — Inslee Pauses Phase 4: Gov. Jay Inslee and Sec. John Wiesman announced today the Washington State Department of Health is putting a pause on counties moving to Phase 4 though the “Safe Start” phased approach. Rising cases across the state and concerns about continued spread of the COVID virus have made Phase 4, which would essentially mean no restrictions, impossible at this time.  

Eight counties were eligible to move from Phase 3 to Phase 4 before the pause.  

"Phase 4 would mean a return to normal activity and we can’t do that now due to the continued rise in cases across the state," Inslee said. "We all want to get back to doing all the things we love in Washington during the summer, and fully open our economy, but we aren’t there yet. This is an evolving situation and we will continue to make decisions based on the data."  

“The best thing Washingtonians can do to slow the spread of the virus and save lives is to wear facial coverings, continue to maintain physical distancing and good hygiene practices," Wiesman said. "Now that testing supplies are available, it is critical to get a test if you have any symptoms suggestive of COVID-19 or have been in close contact with someone who has COVID-19."

Wiesman sent a letter to local and tribal health leaders throughout the state on Saturday. The letter states: "Dear Local and Tribal Health Leaders, "I am writing to let you know Governor Inslee and I have decided to pause progression to Phase 4 statewide.  

"We decided to prohibit any counties from moving into phase 4 at this time due to increasing COVID-19 activity across the state and significant rebounds in COVID-19 activity in several other states. The changes between Phase 3 and Phase 4, especially with regards to gathering size and occupancy rates, could further increase the spread of COVID-19 in our state, even in communities that have very low rates of disease. The progress we’ve made thus far is at risk, therefore we are making the prudent choice to slow down our phased approach to reopening.

"In the next couple of weeks, I will work with Governor Inslee and his team to assess the need for a modified approach for moving beyond Phase 3. I will communicate that
Put the power of PIA in Motion in your office today! www.piawest.com| Facebook | Twitter | LinkedIndecision to you when we have more information. Counties that are currently able to apply to move from Phase 1 or 2 are still able to apply when eligible.

"Thank you for your continued work to protect the health of Washingtonians during this unprecedented time.

Washington — From the Department of Insurance: Kreidler extends withheld depreciation deadline for insurance claims for building repairs

Insurance Commissioner Mike Kreidler extended an emergency order that requires insurers to extend deadlines relating to withheld depreciation for policyholders who are in the process of completing home or building repairs as part of a property loss claim under a replacement cost policy.  

The deadline is extended 30 days to July 26. The original order, issued on April 27, expires June 26.  

Without the extension, some policyholders in Washington could have been forced to accept a depreciated settlement from an insurer that was less than the replacement cost.

Some policies have a time requirement to complete repairs. Since the residential construction industry was prohibited from doing repair work during a statewide shutdown, some people may have been unable to complete the repairs within the allotted time.  

California — COVID-19 Work Comp Estimate: California’s Workers’ Compensation Insurance Rating Bureau (WCIRB) took a look at the impact of COVID-19 on the state’s workers’ compensation system.

The study is called the Impact of Economic Downturn on California Workers’ Compensation Claim Frequency. It looks at claim frequency of recessions and their impacts from 1961 to 2017. The conclusion is that claim frequency is likely to decline during years of recession.

The decline will be — however — modest.

The WCIRB said Governor Gavin Newsom’s edict that COVID-19 work comp claims will be approved without having to provide proof will cost the state between $0.6 billion and $2.0 billion. The mid-range on the estimate is $1.2 billion.

That’s a lot better than the original estimate of $10 billion.

Source link: Insurance Journal
 
Montana — Holland Capital Management Purchases PayneWest Dillion Operation: PayneWest Insurance, Inc., the largest independent, employee-owned, agency in the Northwest, announced  they have entered into a definitive agreement with Holland Capital Management, owner of Novich Insurance of Twin Bridges and Key Insurance of Big Timber, and Key Insurance of Livingston, to sell their Dillon Montana insurance operations.  The transaction is expected to close on or about June 30, 2020, and Novich Insurance will continue to operate from the current PayneWest Insurance location at 203 Southside Blvd.

Holland Capital Management is owned and operated by Tyler Holland and has locations in Big Timber, Twin Bridges and Livingston, Montana.  Tyler’s father, Tom Holland, will be retiring from PayneWest Insurance on July 4th after having spent 44 successful years as an insurance agent - 27 of them with PayneWest and its predecessor.  All other PayneWest Dillon colleagues will remain in the new Dillon agency office, continuing the excellent service clients have become accustomed to over the years.    

“The Holland family and all our insurance colleagues are excited to continue serving the insurance and employee benefits needs of the businesses and families in the Dillon community,” said Tyler Holland, “and we look forward to having the PayneWest Dillon team join our other branches.”

“Our company has always been focused on bringing quality people, resources and insurance solutions to clients.  We are confident Tyler and his staff will continue this legacy of service and expertise, as well as continuing support of the Dillon community,” said Kyle Lingscheit, President and CEO of PayneWest.   

Washington — From the Department of Insurance: Notice of rulemaking on Continued implementation of The Balance Billing Protection Act (R 2020-07)

We are starting rulemaking (R 2020-07) to refine implementation processes and clarify terms related to several components of the new law. Such rules will facilitate implementation of the law by ensuring that all affected entities understand their rights and obligations under the law.

Comments are due June 17, 2020; please send them to rulescoordinator@oic.wa.gov.

For more information, including the notice to start rulemaking (CR-101), please click here to visit the rule's webpage.

Notice of rulemaking on Prohibiting discrimination in health care coverage (R 2020-06)

We are starting rulemaking (R 2020-06) to implement SHB 2338, which amends the state mental health parity law and addresses protection from discrimination in health plans.

Comments are due June 17, 2020; please send them to rulescoordinator@oic.wa.gov.

For more information, including the notice to start rulemaking (CR-101), please click here to visit the rule's webpage.

Notice of rulemaking on health care benefit managers (R 2020-04)

We are starting rulemaking (R 2020-04) to amend existing rules and add new sections necessary to implement Chapter 240, Laws of 2020, requiring registration of health care benefit managers and related filings.

Comments are due July 1, 2020; please send them to rulescoordinator@oic.wa.gov.

For more information, including the notice to start rulemaking (CR-101), please click here to visit the rule's webpage.

Updating the Actuarial Opinion and Memorandum Regulation (R 2020-05) CR-101 and stakeholder draft posted

We released the CR-101 and a stakeholder draft for the Actuarial Opinion and Memorandum Regulation rule (R 2020-05). This rule would amend WAC 284-07-310 through 284-07-400, the Actuarial Opinion and Memorandum Regulation, to more clearly align with RCW 48.74 and industry standards.

Comments on the stakeholder draft are due June 19, 2020; please send them to rulescoordinator@oic.wa.gov.

For more information, including the text of the stakeholder draft, please click here to visit the rule's webpage.

Alaska — Notice of Public Forum: Alaska Section 1332 Innovation Waiver:
 
Patient Protection and Affordable Care Act. The waiver provided an estimated $322 million in federal funding to support the Alaska Reinsurance Program through 2022, which has helped to reduce premium costs and provide stability in Alaska’s individual health care insurance market. The waiver took effect on January 1, 2018. Under the specific terms and conditions of the award, the division has scheduled its annual forum to collect meaningful public comment on the progress of the waiver. Due to the COVID-19 emergency, the forum will be held telephonically. Interested parties may attend by teleconference as listed below, or may submit comments in writing up to 5:00 pm Alaska Time Zone on June 16, 2020.
 
When:
 
June 16, 2020
9:00 am – 10;00 am (Alaska Time Zone)
 
Teleconference Number:
 
1-800-315-6338 (Access Code: 42070#)
 
Submit comments in writing to:
 
Alaska Division of Insurance
P.O. Box 110805
Juneau, Alaska 99811-0805
Email: insurance@alaska.gov
 
Written comments are due by 5:00 pm Alaska Time Zone on June 16, 2020.
 
Reference Documents:
 
Alaska's Section 1332 Waiver Application — https://www.commerce.alaska.gov/web/Portals/11/Pub/Headlines/Alaska%201332%20State%20Innovation%20Waiver%20June%2015%202017.pdf?ver=2017-06-26-091456-033

Federal Approval Notice — https://www.cms.gov/CCIIO/Programs-and-Initiatives/State-Innovation-Waivers/Downloads/Alaska-STCs-signed-by-Treasury.pdf

2020 Federal Pass-Through Funding Calculation — https://www.cms.gov/CCIIO/Programs-and-Initiatives/State-Innovation-Waivers/Downloads/1332-AK-2020.pdf
 
Notice of Public Forum: https://www.commerce.alaska.gov/web/Portals/11/Pub/Notice_Section1332_05.11.2020.pdf

California — Newsom Issues Workmans’ Compensation Order: California Governor Gavin Newsom issued an executive order involving workers’ compensation. The governor has created a time-limited rebuttable presumption for accessing workers’ compensation benefits applicable to Californians who must work outside of their homes during the stay at home order.

In other words, the state will assume that any worker contracting the COVID-19 virus was exposed at work and not elsewhere.

“We are removing a burden for workers on the front lines, who risk their own health and safety to deliver critical services to our fellow Californians, so that they can access benefits, and be able to focus on their recovery,” the governor said. “Workers’ compensation is a critical piece to reopening the state and it will help workers get the care they need to get healthy, and in turn, protect public health.”

Those eligible will have the rebuttable presumption if they tested positive for COVID-19 or were diagnosed with COVID-19 and confirmed by a positive test within 14 days of performing a labor or service at a place of work after the stay at home order was issued on March 19, 2020. The presumption will stay in place for 60 days after issuance of the executive order.

Source link: California Department of Insurance

Oregon — Governor Brown & Budget Cuts: Governor Kate Brown issued the following statement today on the state budget and upcoming May revenue forecast:
 
“One of the many challenging results of the COVID-19 pandemic is the dramatic impact on our economy. With many Oregon businesses restricted or shut down, travel suspended and jobs lost, we expect the revenue that we receive to fund state services will also be significantly reduced,” said Governor Brown.
 
“We anticipate a significant budget impact in the state revenue forecast coming on May 20, which will lead to some really difficult decisions. Our early discussions indicated this impact could be a reduction of $3 billion for the current budget period. We are exploring all available options to weather this recession, and I have directed state agencies to prepare prioritized reduction plans equaling a 17 percent reduction for the upcoming fiscal year as a planning exercise to explore all options. We haven’t made any final decisions, and the agency plans serve as important information gathering at this point. We know a potential cut of this magnitude would be extremely drastic.
 
“Whether the state will need to implement this level of cuts will be dependent on several factors, most importantly the need for additional federal funding to support state services, including our K-12 public school system. I will continue to work with Oregon’s congressional delegation in calling for more federal support. I will also work closely with Legislative leadership on the best ways to balance the budget. I am committed to doing so in a thoughtful, collaborative manner that explores all tools available.
 
“While these are uncertain times, one thing is clear: state employees are working many long hours to keep Oregonians safe and secure during this pandemic. In this time of crisis, Oregonians rely on state services more than ever, and cutting critical state services will be a last resort.”

Oregon — State issues emergency order for health insurance companies: The Oregon Department of Consumer and Business Services issued a new emergency order for health insurance companies during the COVID-19 outbreak.
 
The order requires health insurance companies to:

Provide at least a 60-day grace period to pay any past due premiums
Pay claims for any covered services during the first 30 days of the grace period
Extend all deadlines for reporting claims and other communications, and provide members with communication options that meet physical distancing standards
The order is in effect through June 3 and will be extended in 30-day increments during the course of the COVID-19 outbreak.

READ THE COMPLETE ORDER: https://dfr.oregon.gov/business/reg/Documents/20200505-Health-Ins-EO.pdf

Washington — Contractors Insurance NW Sold: Heffernan Insurance Brokers has purchased Olympia’s Contractors Insurance NW. Heffernan is an independent insurance brokerage out of Walnut Creek, California.

Contractors Insurance NW offers contractors insurance to contractors in Washington, Oregon, California, Idaho, and Texas.

Heffernan sells a variety of financial services products and insurance.

Source link: Insurance Journal

Washington — Kreidler on Credit Scoring: Insurance Commissioner Mike Kreidler is reminding consumers of a new federal protection that applies to how insurance companies use a consumer’s credit history.

The federal Coronavirus Aid, Relief and Economic Security (CARES) Act amends the Fair Credit Reporting Act and protects consumers during the coronavirus pandemic from any negative credit reporting as long as their accounts were in good standing before the pandemic started.

This protection also applies to how insurers use credit history to calculate how much consumers pay for auto and homeowners insurance.

“The initial focus of the act was on stimulus payments, but it’s also important to alert people to new protections regarding credit scoring,” said Kreidler. “Millions of people have lost their jobs and are likely struggling to pay their bills during this pandemic. It’s critical that we do what we can to make sure they’re not further harmed during these financially devastating times.”

The CARES Act:

    Prohibits a creditor from reporting an individual’s delinquent payments to a credit reporting agency if the individual was up-to-date on their payments before the pandemic started.  
    If asked, a creditor may also allow an individual to defer one or more payments, make a partial payment, or modify a loan or contract.

The 120-day duration of the moratorium took effect March 27. It is likely to be extended until the federal administration declares an end to the current national emergency.

Kreidler has been a vocal opponent of the use of credit information in insurance and worked to restrict its use in Washington state early in his administration.

“I first heard about insurers using credit information 2001,” said Kreidler. “I thought it was incredibly unfair then and worked to limit its use. While some people may benefit, I still believe many more people are harmed by it.”

“I want people to know they have these new but temporary protections now and that I’m closely monitoring how insurers use credit information. If we see people are being harmed by its use, I’ll use my authority to limit the practice where I can.”

Washington state law restricts how insurers can use credit information when determining who to offer coverage to and how much to charge someone.  

Anyone who believes their credit information has been misused by their insurance company should contact Kreidler’s consumer protection division either online or by calling 1-800-562-6900.

California — COVID-19 & Work Comp Costs: California is looking at expanding workers’ compensation to include essential workers infected by the COVID-19 virus. That could up the state’s workers’ compensation costs to $33.6 billion.

Doing that will make that portion of the total bill as much as 61%.

This figure came from the Workers Compensation Insurance Rating Bureau of California and is a response to an edit by the California State Assembly Insurance Committee. The WCIRB defined these as health care workers, firefighters, emergency responders, front-line law enforcement officers and other essential critical infrastructure employees.

In total the state has 6.8 million workers in 16 different sectors that are deemed as essential workers. The data says the average cost will hit $1,500 with severe claims going as high as $51,000. Critical cases could top $127,000 on average.

Source link: Business Insurance

Idaho — Complying with Regulatory Requirements during the Public Health Emergency: This bulletin is to inform all insurance companies of flexibility regarding compliance with regulatory requirements during the COVID-19 public health emergency. This flexibility is being provided in part to recognize that Idaho and other states anticipate using additional targeted information requests to gather more specific information and your prompt attention to those matters is appreciated.
 
On March 13, 2020, Governor Brad Little declared a state of emergency due to the occurrence and imminent threat to public health and safety arising from the effects of the 2019 novel coronavirus (“COVID-19”). This declaration states, in part:
 
State agencies and departments are directed to utilize state resources and to do everything reasonably possible to assist affected political subdivisions in an effort to respond to and recover from the 2019 novel coronavirus (COVID-19).
 
****
 
State licensing agencies and departments are authorized to temporarily exercise enforcement discretion, implement temporary rules, and waive licensing and related requirements to maximize access to health care services and provider support in response to COVID-19.
 
The emergency proclamation has the force and effect of law. Idaho Code section 46-1008.
 
The Director of the Department of Health and Welfare issued an Order to Self-Isolate based on the COVID-19 emergency on March 25, 2020. These pandemic conditions make compliance with regulatory requirements more challenging.
 
Therefore, pursuant to sections 41-210(2) and 41-210(5), Idaho Code, the Department hereby notifies all authorized insurers of flexibility regarding compliance with regulatory requirements.
 
Regulatory Filing Deadlines
At this time, companies are still required to make all required electronic filings with the NAIC (e.g., quarterly financial statements, audited financial statements), or for those that are not filed with the NAIC but to the Department analyst assigned to your company. However, upon a request from an insurer, the Department may allow insurers additional time to complete the following filings, as described below. The Department reserves the right to reject any such individual company requests based upon the financial condition and unique circumstances of that company deemed applicable to that company. If your company believes that it will not be able to meet any of the original financial filing deadlines as shown below, please submit your request for extension of specific deadlines to Nathan Faragher and Weston Trexler at the Department at Nathan.Faragher@doi.idaho.gov and Weston.Trexler@doi.idaho.gov.
 
Filings with a Potential 30-day Extension
 
May 1, 2020 - Combined Annual Statement Filing (Property)
May 1, 2020 - Combined Insurance Expense Exhibit (Property)
June 1, 2020 - Accountant’s Letter of Qualifications (Property, Life/Fraternal, Health, Title)
Aug. 15, 2020 - PBR Exemption filing due to state 7/1 and to NAIC 8/15 (Life/Fraternal)
 
Filings with a Potential 60-day Extension
 
June 1, 2020 - Audited Financial Report (Property, Life/Fraternal, Health, Title)
Aug. 1, 2020 - Communication of Internal Control Related Matters Noted in Audit (Property, Life/Fraternal, Health, Title)
June 1, 2020 - Corporate Governance Annual Disclosure (CGAD)
December 31, 2020 - Own Risk and Solvency Assessment (ORSA) Summary Report
June 1, 2020 - Form B Registration Statement & Related Form C
June 1, 2020 - Risk Assessment Report (Form F)
 
The filing deadlines for the components of the 2019 annual filings that, if applicable, should be submitted only to an insurer’s state of domicile are as follows:
 
Apr. 30, 2020 - Actuarial Memorandum Required by Actuarial Guideline XXXVIII 8D (Life/Fraternal)
Aug. 1, 2020 - Management’s Report of Internal Control Over Financial Reporting (Property, Life/Fraternal, Health, Title)
 
Filings with a Potential 30-day Extension
 
The NAIC filing deadlines and requirements for the 2020 quarterly electronic filings are as follows, all due May 15, 2020:
 
Quarterly Statement Filing as of March 31, 2020 (Property, Life/Fraternal, Health, Title)
Trusteed Surplus Statement – Quarter Ending March 31, 2020 (Property, Life/Fraternal)
Supplement A to Schedule T (Medical Professional Liability Supplement) – Quarter Ending March 31, 2020 (Property)
Medicare Part D Coverage Supplement – Quarter Ending March 31, 2020 (Property, Life/Fraternal, Health)
Merger/history quarterly form, if applicable (Property, Life/Fraternal, Health, Title) (electronic txt file only)
Reasonableness of Assumptions Certification Required by Actuarial Guideline XXXV – Quarter Ending March 31, 2020 (Life/Fraternal)
Reasonableness and Consistency of Assumptions Certification Required by Actuarial Guideline XXXV – Quarter Ending March 31, 2020 (Life/Fraternal)
Reasonableness of Assumptions Certification for Implied Guaranteed Rate Method Required by Actuarial Guideline XXXVI – Quarter Ending March 31, 2020 (Life/Fraternal)
Reasonableness and Consistency of Assumptions Certification Required by Actuarial Guideline XXXVI (Updated Average Market Value) – Quarter Ending March 31, 2020 (Life/Fraternal)
Reasonableness and Consistency of Assumptions Certification Required by Actuarial Guideline XXXVI (Updated Market Value) – Quarter Ending March 31, 2020 (Life/Fraternal)
Director and Officer Insurance Coverage Supplement – Quarter Ending March 31, 2020 (Property)
 
Electronic Filings and Signatures
The Department generally instructs companies to file certain documents in hard copy form with original (wet) signature, and in some cases sent via certified mail or first-class and with notary requirements. The hard copy, original signature, and related filing requirements are currently waived. However, companies are expected to keep a list of all filings that were made electronically in lieu of hard copy filings so that they can file all the hard copies within 60 days after the state has allowed a return to work. The Department expects electronic communication will be used by companies on all other financial related communication, with hard copies provided within 60 days if required by law.
 
On-site Examinations
Some insurers have inquired whether the Department will continue to conduct on-site examinations during the COVID-19 pandemic. The Department will not conduct any on-site examination work that is contrary to the spirit of any public health directive. As a result, insurers should be aware that the Department may need to request more information in electronic form. The Department expects independent auditors will take a similar position which may constitute good cause for filing extensions. The Department acknowledges that company response times may be slower as more company employees work from home.
 
Idaho — Questions and Answers: The Department has received significant questions and concerns about whether business property insurance policies that cover business interruption losses apply to businesses that have been closed as a result of the COVID-19 emergency.

This Bulletin provides a general overview of this type of coverage and the types of policy provisions that consumers have the most questions about. This Bulletin also provides guidance to property and casualty agents and carriers about the Department’s expectations about how business interruption claims should be handled.

This Bulletin is not an exhaustive discussion of issues related to business interruption coverage. Additionally, the Department may issue additional bulletins on this topic as issues arise. Furthermore, the Department has posted an FAQ on this subject on its website.

The Department encourages policyholders to review their policies and to contact their agent or carrier to discuss their coverages. If afterwards a policyholder still has questions or concerns, please contact the Department’s Consumer Affairs team at (208) 334-4319 or (800) 721-3272 or at doi.idaho.gov/consumer.

Business Interruption Coverage

The Department recognizes that all business interruption policies are not identical, and the coverage provided by a given policy depends on the specific wording of the contract. However, the following principles generally apply.

Business interruption insurance is typically an optional coverage that can be purchased to protect businesses against income losses incurred when the business is fully or partially shut down as a result of sustaining a covered loss. The policies typically pay when the following four elements are met:

The policyholder has sustained physical damage to insured property;
The damage is caused by a covered peril;
The damage results in quantifiable business losses; and
The losses take place during the time it takes to restore the property.

Virus or Communicable Disease Exclusions

Some policies may expressly exclude payment for damage caused by viruses or communicable diseases. They may either contain clauses stating that viruses and communicable diseases are not a form of physical damage, or that viruses and communicable diseases are not a covered peril and therefore may not be covered. Any given policyholder’s loss may warrant review to determine applicability of specific exclusion language.

Civil Authority Clauses

In some cases, business interruption coverage contains a “civil authority” clause. Like other business interruption coverage, this clause may require physical damage to property caused by a covered peril, but not necessarily the insured’s property or at the insured location. Dependent on the specifics of a given policyholder’s situation and policy language, there may be coverage for closure of the business because of an action by a governmental entity (a “civil authority”) because of health and safety concerns, so long as the covered physical loss or damage has occurred.

Instructions to Carriers Regarding the Reporting of Negative Claims

Because of the magnitude and unprecedented nature of COVID-19 related losses, policyholders should not be penalized for attempting to determine the boundaries of their coverage. The Department instructs insurance carriers that they shall not report as negative claims activity or report as a claim denial when an insured or policyholder contacts the company or its agent or broker to ask about business interruption coverage for COVID-19 under its policy.

Due Diligence and Good Faith in the Evaluation of Claims

The Department strongly encourages carriers to consider all the foregoing factors, at a minimum, when determining whether coverage exists in any given situation. Each situation must be considered on a case-by-case basis. The Department reminds carriers of their responsibility to act in good faith when dealing with their insureds.

Idaho — Extension of Transitional Plans Until Further Notice: This Bulletin to carriers in the employer and individual health insurance markets provides guidance regarding the extension of non-grandfathered transitional plans (also known as “grandmothered” plans).
 
Bulletin No. 13-05 addressed carriers continuing to offer grandmothered individual and small employer policies in existence on October 1, 2013 at their 2014 renewal. Subsequent federal guidance allowed for further extensions of these plans, which the Department chose to allow. The latest CMS guidance, released January 31, 2020, allows states the option of extending the grandmothered plans through December 31, 2021.
 
CMS has extended these plans on an annual basis since 2013. Recognizing the likelihood of future extensions from CMS, the Department, through this Bulletin No. 20-01, provides for grandmothered plans in the Idaho individual and small group markets to be extended until and unless such extensions are no longer permitted by CMS or the Department rescinds or replaces this bulletin. If CMS fails to authorize any further extensions, the Department will notify carriers that the grandmothered plans can no longer be renewed, and will include applicable dates, noticing requirements and any other relevant information.  
 
The grandmothered plans must continue to comply with the following ACA provisions:
 
Elimination of annual dollar limits on EHB as defined by the Idaho benchmark plan, to the extent the grandmothered plans cover EHB
No pre-existing condition exclusion (small groups)
Waiting periods not to exceed 90 days (small groups)
Mental health parity rules (individual plans)
 
Carriers must continue to abide by the requirements of Bulletin No. 16-03, ensuring all grandmothered plans remain on a calendar year renewal schedule, Bulletin No. 18-02, regarding the treatment of autism spectrum disorder, and other guidance as applicable.
 
Carriers are required to provide a notice at renewal which informs the individual or small employer of the option to renew the existing coverage or to enroll in a new plan on or off Your Health Idaho, and also includes the information that some ACA market reforms are not included in their current plans. The notices, available on the Department website for both individual and small group grandmothered plans, must be used without modification, and must be mailed without any other materials except for a cover letter, which may include the renewal premium.
 
If you have questions concerning this bulletin, please contact Kathy McGill or Wes Trexler at the Department of Insurance.

Oregon — Colorado and Nevada Join Western States Pact: Colorado Governor Jared Polis and Nevada Governor Steve Sisolak today announced their respective states are joining California, Oregon and Washington in the Western States Pact––a working group of Western state governors with a shared vision for modifying stay at home and fighting COVID-19.

“As Western states, we are all in this together,” said Governor Kate Brown. “Each of our states took quick and decisive action, based on science and data, to stop the spread of COVID-19. In the same way that we share expertise and help one another during wildfire season, we will work together as we recover from the impacts of this pandemic––with a shared vision, a common purpose, and individual paths forward tailored to the needs of our states––to reopen our communities and economies, and prepare our constituents for a safe return to public life.”

“Coloradans are working together to slow the spread of COVID-19 and have important information to share with and to gain from other states," said Governor Polis. "I’m thrilled Colorado is joining the Western States Pact. There’s no silver bullet that will solve this pandemic until there is a cure so we must have a multifaceted and bold approach in order to slow the spread of the virus, to keep our people safe and help our economy rebound.”

“I’m honored to have the State of Nevada join the Western States Pact and believe the sharing of critical information and best practices on how to mitigate the spread, protect the health and safety of our residents, and reopen responsibly will be invaluable as we chart our paths forward," said Governor Sisolak. "Millions of visitors from our fellow Western states travel to Nevada every year as a premier tourism destination, and this partnership will be vital to our immediate recovery and long term economic comeback.”

California Governor Gavin Newsom, Oregon Governor Kate Brown and Washington Governor Jay Inslee recently announced they would be working together under a shared vision for gradually modifying their state’s stay at home orders and fighting COVID-19. They listed three shared principles as foundational to the agreement:

• Our residents’ health comes first. As home to nearly one in five Americans and gateway to the rest of the world, the West Coast has an outsized stake in controlling and ultimately defeating COVID-19.

• Health outcomes and science – not politics – will guide these decisions. Modifications to our states’ stay at home orders must be made based off our understanding of the total health impacts of COVID-19, including: the direct impact of the disease on our communities; the health impact of measures introduced to control the spread in communities—particularly felt by those already experiencing social disadvantage prior to COVID-19; and our health care systems’ ability to ensure care for those who may become sick with COVID-19 and other conditions. This effort will be guided by data. We need to see a decline in the rate of spread of the virus before large-scale reopening, and we will be working in coordination to identify the best metrics to guide this.

• Our states will only be effective by working together. Each state will work with its local leaders and communities within its borders to understand what’s happening on the ground and adhere to our agreed upon approach.

As part of the Western States Pact, the Governors commit to working together toward the following four goals:

• Protecting vulnerable populations at risk for severe disease if infected. This includes a concerted effort to prevent and fight outbreaks in nursing homes and other long-term care facilities.

• Ensuring an ability to care for those who may become sick with COVID-19 and other conditions. This will require adequate hospital surge capacity and supplies of personal protective equipment.

• Mitigating the non-direct COVID-19 health impacts, particularly on disadvantaged communities.

• Protecting the general public by ensuring any successful lifting of interventions includes the development of a system for testing, tracking and isolating. The states will work together to share best practices.

https://www.oregon.gov/newsroom/Pages/NewsDetail.aspx?newsid=36507

Oregon — State extends emergency order for insurance deadlines:The Oregon Department of Consumer and Business Services has extended its emergency order on insurance deadlines until at least May 23.
 
Insurance companies must continue to do the following until the order is no longer in effect:
Institute a grace period for premium payments on all insurance policies issued in the state
Suspend all cancellations and nonrenewals for active insurance policies
Extend all deadlines for consumers to report claims and communicate about claims
Provide consumers the ability to make premium payments and report claims while maintaining safe social distancing standards
The order is effective through at least May 23. If necessary, the department may extend the duration of this temporary order.
 
For more information:
Read the extension of the emergency order
Read the emergency order FAQs
View the COVID-19 regulated businesses page

Oregon — The Oregon Division of Financial Regulation has published the following: Bulletin No. DFR 2020-12: Implementation of 60-day advance notice of specified prescription drug price increases as required by 2019 House Bill 2658

Purpose

This Bulletin provides guidance on the form and manner of reports due from pharmaceutical manufacturers at least 60 days in advance of specified increases in the price of prescription drugs, and clarifies the Department of Consumer and Business Services, Division of Financial Regulation's approach to implementing the reporting program under HB 2658.
 
To read this and other bulletins and get more information, please visit the Division of Financial Regulation's Bulletins page at:

https://dfr.oregon.gov/laws-rules/Documents/Bulletins/bulletin2020-12.pdf

Oregon — Bulletin No. DFR 2020-11: The Division of Financial Regulation has received questions from insurers about how to address the changes in exposure due to the COVID-19 emergency orders. Some of these questions have included adding coverage for people using their vehicles differently and temporary rate reductions from decreased claim exposure. This document provides guidance for insurers on how to inform the division about proposed changes and required communications with policyholders.

California — Auto Coverage Extended to Delivery Drivers: With restaurants and businesses expanding deliveries to comply with “shelter in place” rules, Insurance Commissioner Ricardo Lara today urged insurance companies to extend auto insurance coverage for drivers who are using their personal vehicles to fulfill deliveries for California’s essential businesses during the COVID-19 pandemic.
 
Because personal automobile policies do not typically provide coverage for vehicles used for commercial purposes and some drivers may not be covered under their employer’s commercial automobile policy issued to a California essential business, temporary delivery drivers may be inadvertently uninsured as they carry out their job duties. Today’s action ensures that businesses can continue to provide essential goods to residents and families at their homes and that delivery workers are protected at all times so that they may continue their work critical to public health and safety.
 
“This is an unprecedented time so we must take unprecedented action to help Californians comply with public health ‘shelter in place’ orders,” said Insurance Commissioner Ricardo Lara. “Delivery drivers are performing essential services to help our seniors and families, and this action will protect them while on the roads.”
 
Under today’s Notice, insurance companies should not deny a claim under a personal auto policy solely because the driver was providing delivery service on behalf of a California essential business impacted by the COVID-19 pandemic. The Notice applies to 16 categories of “essential critical infrastructure workers” identified by the U.S. Department of Homeland Security on March 19, including those who deliver food, medication, and other essential goods.
 
The Department is also requesting insurance companies to extend delivery coverage for motorcycle and bicycle riders, and allow essential businesses to retroactively add drivers to their commercial automobile policies beginning on March 19, 2020.
 
“We appreciate Commissioner Lara’s attempt to help our industry in these historically challenging times," said Matt Sutton, Senior Vice President for Government Affairs and Public Policy at the California Restaurant Association. "Any and all help is welcome.”

Idaho — COVID-19: Idahoans are experiencing unprecedented challenges due to the COVID-19 pandemic and health insurance issues should be the least of them. The Idaho Department of Insurance has been working with carriers to find ways to help Idahoans.  All carriers agreed to waive consumer costs for testing and physician visits.  This week, two major carriers announced they also will waive consumer costs for treatment of COVID-19 as well.
 
The Department of Insurance has released four bulletins granting unprecedented regulatory flexibility in certain areas for health insurance companies and producers to help Idahoans retain and use their coverage. The DOI is considering and continuing to work on other efforts in this complex and fluid situation.
 
“The Department of Insurance is doing all it can to protect Idahoans and support the Governor’s efforts during this unprecedented time in history,” said Director Dean Cameron.  “The Department is granting flexibility to carriers so they can help Idahoans during this difficult time.  The dedicated employees of the DOI are available remotely to assist with questions or concerns.  Please visit us at doi.idaho.gov or email us at consumeraffairs@doi.idaho.gov.”
 
The four bulletins are as follows and with links to the full documents:
 
Waiver of certain requirements to address COVID-19:  This bulletin applies to health insurance carriers offering individual or employer sponsored group major medical health and dental insurance policies, allowing flexibility regarding premium deferral, premium holidays, continuation of coverage, grace periods, and waiver of eligibility requirements. The goal is to provide carriers and employers with the tools to retain coverage even while temporarily closed or operating in reduced hours.
 
LINK: Bulletin 20-01 — https://doi.idaho.gov/DisplayPDF?ID=7750
 
Temporary waiver of certain pharmacy benefit policy requirements:  This bulletin allows flexibility of prescription provisions for all fully insured plans, including the allowance of early refills, 90-day supply, and avoidance of in-person signature logs and subsequent audits of pharmacies.
 
LINK: Bulletin 20-02 — https://doi.idaho.gov/DisplayPDF?ID=7751
 
Temporary waiver of certain policy and enforcement requirements:  This bulletin applies to health insurance carriers offering telehealth benefits through individual or employer sponsored group major medical health insurance policies. Flexibility is granted to expand telehealth access to all in-network providers and expand how telehealth services can be received.
 
LINK: Bulletin 20-03 — https://doi.idaho.gov/DisplayPDF?ID=7752
 
Provisional producer licenses:  This bulletin allows new producers and applicants for producer licenses the procedure for obtaining a provisional producer license during the COVID-19 emergency.  A provisional resident producer license is valid for up to six months and does not renew automatically at the end of the license period.
 
LINK: Bulletin 20-04 — https://doi.idaho.gov/DisplayPDF?ID=7753
 
These bulletins will remain in effect so long as the Governor’s emergency proclamation remains in effect. Other flexibility and provisions are currently being considered and will be made available when appropriate.

Idaho — Health Carrier Relief: Idaho health carriers have been collaborating with the Idaho Department of Insurance (DOI) to provide relief for Idahoans during the COVID-19 pandemic.
 
Every family and business has been impacted by COVID-19 in the country, including the insurance industry.  As Idahoans face strenuous circumstances and an unclear future, the insurance community is stepping up to provide relief to its policyholders.  All five major health insurance carriers in Idaho are waiving cost-sharing for both testing and treatment.  The Idaho carriers waiving cost-sharing are:  Blue Cross of Idaho, Regence, SelectHealth, Pacific Source, and Mountain Health Co-Op.
 
“The DOI has been collaborating with our carriers in Idaho through these uncertain times,” said Director Dean Cameron. “Providing assistance to Idahoans in this difficult time is our top priority and I am grateful to these carriers for their leadership and compassion.”
 
The decision to offer Idahoans relief was a voluntary effort from all five insurance carriers in Idaho.  In addition to waiving cost-sharing for testing and treatment, Idaho’s carriers have also improved telehealth options, assisted Your Health Idaho with expedited enrollment procedures, and are assisting physicians and hospitals financially.
 
The Department is also working with carriers that offer short-term health insurance and inviting them to waive cost-sharing for testing and treatment. Two Idaho insurers, Blue Cross of Idaho and SelectHealth, voluntarily are doing so.  Others are waiving cost-sharing for testing and reviewing the DOI’s requests. The DOI will post a full list of carriers and their assistance on the DOI’s website.
 
The DOI continues to consider and review opportunities for assistance to Idahoans during this time.  Consumers who have questions or concerns should reach out to the DOI at consumeraffairs@doi.idaho.gov.  In addition, the DOI has COVID-19 online resources and steps to protect public health.  Visit the DOI’s Coronavirus Resource Page — https://doi.idaho.gov/consumer/Health/COVID.

Montana — Congressman Greg Gianforte Townhall: Join the PIA's Town Hall with Congressman Greg Gianforte Thursday April 16th at 9:15 Montana time.
 
Congressman Gianforte and our participants will be discussing the latest updates to Coronavirus legislation and answer your questions.
 
Open to all PIA Members and non members of the independent agency system and carrier representatives.

REGISTER TO ATTEND AND SUBMIT YOUR QUESTIONS HERE —  https://www.piawest.com/page/CongressmanGregGianforteTownHall?_zs=u70Te1&_zl=Hfgf6

Call information will be emailed after submittal.

Learn more about Congressman Gianforte: https://gianforte.house.gov/about-greg

Oregon — Workers’ Compensation Insurance Bulletins: The Oregon Division of Financial Regulation has published the following:

Bulletin No. DFR 2020-9: Rerating businesses that have changed operations in response to the COVID-19 pandemic and suspension of field audits

Purpose

This bulletin provides guidance to employers and workers compensation insurers regarding changes in operations due to public health measures in response to the COVID-19 pandemic. It addresses when a change in classification code is appropriate for employees reassigned to work from home, when insurers should rerate a business, and the suspension of field audits.
Bulletin No. DFR 2020-10: Payments to employees of businesses closed due to pandemics to be excluded from workers’ compensation premium basis

Purpose

This bulletin provides guidance to workers compensation insurers and employers paying employees furloughed due to pandemic-related closures.

To read these and other bulletins and get more information, please visit the Division of Financial Regulation's Bulletins page at:

https://dfr.oregon.gov/laws-rules/Documents/Bulletins/bulletin2020-09.pdf
https://dfr.oregon.gov/laws-rules/Documents/Bulletins/bulletin2020-10.pdf