Around the PIA Western Alliance States – Week of August 19, 2024

California — Lara Makes Board Appointments: Insurance Commissioner Ricardo Lara announced several appointments to help drive forward the Department of Insurance’s mission to protect California consumers. These appointments include naming Timothy Hyamn as the newest member of the California Insurance Guarantee Advisory (CIGA) Board of Directors, Bryan Little as the newest member of the Workers’ Compensation Insurance Rating Bureau (WCIRB) Governing Committee, Michael Golden and Nona Tirre Mirande as reappointed members to the California Automobile Assigned Risk Plan (CAARP) Advisory Board, and Ophir Bruck, Stephanie Chan, and Thomas Connell Wilson as reappointed members to the California Organized Investment Network (COIN) Advisory Board.

“I am pleased to announce these new appointments to the CIGA Board of Directors and WCIRB Governing Committee, and these reappointments to the CAARP Advisory Board and COIN Advisory Board,” said Commissioner Lara. “I have every confidence that these new, and returning, members will act in the best interest of all Californians. The advice and diverse perspectives of these appointees are critical to continuing our efforts to protect consumers across our state and ensure a robust insurance marketplace in California.”

The Governor and California State Legislature created CAARP to provide auto insurance for motorists unable to obtain coverage in the private market due to their driving records or other extraordinary circumstances. One program within the plan -- the California Low Cost Auto Program -- aims to provide affordable liability insurance to income-eligible good drivers by assigning them to private insurers based upon the companies’ share of the auto insurance market. The CAARP Advisory Committee provides policy advice to Commissioner Lara on matters affecting the operation of its programs.

The CIGA Board of Governors oversees the guarantee association’s general operations and management in order to protect policyholders in the event of an insurance company insolvency. Established in 1969 by the Governor and California State Legislature, CIGA comprises all insurance companies admitted to sell homeowners, workers’ compensation, automobile, and other specified property and casualty lines of insurance in California.

The California Organized Investment Network (COIN) was established in 1996 within the Department of Insurance to guide insurers on making financially sound investments that yield environmental benefits throughout California and social benefits within the State’s underserved communities. Commissioner Lara has prioritized COIN investments which drive affordable housing, support small businesses, combat climate change, and encourage investors to utilize diverse investment managers more. The COIN Advisory Board provides guidance to the Commissioner and the COIN program to meet its mission and chief priorities.

The WCIRB Governing Committee sets policy, oversees WCIRB management, and reviews all issues involving pure premium rates, classifications, rating plans, rating systems, manual rules and policy, and endorsement forms. The WCIRB is a private organization licensed by the Department for the purpose of collecting, analyzing, and compiling rating data, with funding coming from assessments of its insurance company members. All workers’ compensation insurance companies in California are required by law to be members of the WCIRB. 

The next CAARP Advisory Committee meeting is August 20 and August 21, 2024, the next CIGA Board of Governors meeting is August 13 and August 14, 2024, the next COIN Advisory Board meeting is November 7, 2024, and the next WCIRB Governing Committee meeting is September 25, 2024.

More details are available at: www.insurance.ca.gov/boards. Public members of the CAARP Advisory Committee receive $250 per meeting. All other positions are uncompensated.

Oregon — The Oregon Division of Financial Regulation recently announced the following permanent rulemaking:

ID 19-2024: Establishes disclosure and care obligations for recommendations or sales of annuities to prospective purchasers

Amend: OAR 836-051-0905, 836-080-0170, 836-080-0172, 836-080-0178, 836-080-0183, 836-080-0185, 836-080-0190, 836-080-0193

Repeal: OAR 836-080-0175, 836-080-0180, 836-080-0188

Rule Summary: Senate Bill 536 (SB 536), codified at ORS 743.262, was adopted during the 2023 Legislative Session and establishes disclosure and care obligations for sales of annuities to prospective purchasers. SB 536 closely aligns with the National Association of Insurance Commissioners (NAIC) updated Model Regulation #275 - Suitability in Annuity Transactions Model Regulation.

In 2020, the NAIC revised Model Regulation #275 language by incorporating a consumer disclosure and care obligations for annuity sales, a higher level of consumer care compared to the previous product suitability standard. Under these standards, insurance producers, insurers, and securities-brokers must meet specific care obligation in recommending products to consumers by taking into account the circumstances known at the time an annuity product recommendation is made.

Filed: August 12, 2024

Effective: August 12, 2024

Washington — Producer and adjuster licensing requirements proposed rule posted: We have released the proposed rule language on R 2024-06. The rule includes both substantive and technical changes to producer and adjuster licensing requirements under Chapter 284-17 WAC. It aims to ensure that insurance regulations are clear, relevant, and consistent with Title 48 of the Revised Code of Washington and the forthcoming National Insurance Producer Registry (NIPR) interface enhancement.

We scheduled a public hearing on the rule:

When: September 24, 2024, at 09:00 a.m.

Where: Virtual, please register in advance.

The comment period on the proposed rule language opens on August 7, 2024, and closes at close of business on September 26, 2024. Please send them to rulescoordinator@oic.wa.gov.

For more information, including the proposed rule language (CR-102), please visit the producer and adjuster licensing requirements (R 2024-06) webpage.

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Washington — Implementation of SB 6027 (Chapter 42, Laws of 2024) Insurance Holding Company Act proposed rule posted: We have released the proposed rule language on Insurer Holding Company Act (R 2024-04). The rule would align Washington’s Insurer Holding Company Act (Ch. 48.31B RCW) with the updated NAIC model authorities on this topic.

We scheduled a public hearing on the rule:

When: September 12, 2024, at 09:00 a.m.

Where: Virtual, please register in advance.

The comment period on the proposed rule language opens on August 7, 2024, and closes at close of business on September 13, 2024. Please send them to rulescoordinator@oic.wa.gov.

For more information, including the proposed rule language (CR-102), please visit the insurer holding company act (R 2024-04) webpage.

Washington — Consolidated Health Care Rulemaking prepublication draft posted: We are releasing a prepublication draft for the Consolidated Health Care Rulemaking (R 2024-05). This consolidated rulemaking aims to implement SSB 5300 (RCW 48.43.0961), SB 5821 (Chapter 215, Laws of 2024), ESHB 1957 (Chapter 314, Laws of 2024), and other related legislation and laws. 

This effort may include but is not limited to clarifying prescription drug coverage for behavioral health treatment, updating the definition of “established relationship” as applied to audio-only telemedicine services, and clarifying coverage and cost sharing requirements for preventive services.

Comments on the prepublication draft are due by August 23, 2024. Please send them to rulescoordinator@oic.wa.gov. For more information, including the text of the prepublication draft, please visit the Consolidated health care (R 2024-05) webpage.