Around the PIA Western Alliance States – Week of May 6, 2024

Idaho — Idaho Department of Insurance Wildfire Risk Forum: The Idaho Department of Insurance (IDOI), together with the National Association of Insurance Commissioners (NAIC) Western Zone and the Insurance Institute for Business & Home Safety (IBHS), hosted the first-ever Western Zone Wildfire Risk Forum on April 29-30, 2024, in Boise, Idaho. The forum was intended to educate and inform western policymakers on the impact of wildfire on the homeowner and commercial insurance markets.

Approximately 80 insurance regulators and policymakers participated in the event – the first of its kind for the NAIC.

Day one of the forum was hosted at the National Interagency Fire Center. Activities included:

A panel discussion led by Idaho’s Insurance Director Dean Cameron with Hawaii Insurance Commissioner Gordon Ito, Texas Insurance Commissioner Cassie Brown, and Colorado Deputy Commissioner Jason Lapham. Each shared their perspective and lessons learned from recent large and destructive wildfires in their states.

A burn demonstration by the IBHS, a nonprofit science and communications organization that is supported by insurers and companies. The burn featured a side-by-side look at fire behavior and showed the importance of immediate defensible space, comparing a fire-ready vs. not fire-ready structure. Watch IBHS burn demonstration video on YouTube

“Our research puts science-based solutions into the hands of homeowners and identifies a system of actions that give homes a chance to survive a wildfire,” says IBHS CEO Roy Wright. “It’s good to see Idaho leaning in to emphasize the importance of taking action now before the next red flag warning.”

Governor Brad Little signed a proclamation declaring May as “Wildfire Preparedness Month.” He stated: “The unprecedented growth of the wildland-urban interface has elevated the need for coordinated education concerning how, where, and why wildfires burn as well as collaborative efforts to increase survivability of homes and property.”

A panel discussion on community action with Director Brad Richy, Idaho Office of Emergency Management; Director Dustin Miller, Idaho Department of Lands, Megan Fitzgerald-McGowan, National Fire Protection Association/ Firewise USA; and Aitor Bidaburu, NIFC/U.S. Fire Administration.

Day two included technical training by the NAIC Catastrophe Modeling Center of Excellence and wildfire model vendors. Western Zone insurance regulators learned about incorporating wildfire science to understand and predict wildfire behavior, and how wildfire risk model research helps estimate damage and assess community vulnerability. They also heard from the insurance industry about their use of wildfire models.

“Idaho was honored to lead and host this event as we look for solutions to stabilize the property insurance market and help citizens protect their property. Ultimately, we want our citizens to have access to affordable coverage and avoid the insurance carrier withdrawals we have seen in other states,” said Director Cameron.

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

Filing Caption: Amendment to 2025 standard bronze and silver health benefit plan

Amend Rule: OAR 836-053-0013

Rule Summary: Update Standard Bronze and Silver Plans.

Filed: April 29, 2024

Hearing: May 22, 2024, 10:00 a.m.

This is a hybrid meeting conducted in-person and virtually via Microsoft Teams. See Notice of Proposed Rulemaking for Teams meeting instructions.

Last day/time to offer comment: May 29, 2024, 5:00 p.m. 

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

Filing Caption: Repealing the regulation of the insulin co-pay amount for health benefit plans for the state of Oregon

Repeal Rule: OAR 836-053-0025

Rule Summary: Repealing the regulation of the insulin co-pay amount for health benefit plans for the state of Oregon.

Filed: April 29, 2024

Hearing: May 22, 2024, 10:00 a.m.

This is a hybrid meeting conducted in-person and virtually via Microsoft Teams. See Notice of Proposed Rulemaking for Teams meeting instructions.

Last day/time to offer comment: May 29, 2024, 5:00 p.m. 

Oregon — The Oregon Division of Financial Regulation recently announced the following proposed rulemaking: Filing Caption: Establishes disclosure and care obligations for recommendations or sales of annuities to prospective purchasers

Proposed Rules: 836-051-0905, 836-080-0170, 836-080-0172, 836-080-0175, 836-080-0178, 836-080-0180, 836-80-0183, 836-080-0185, 836-080-0188, 836-080-0190, 836-080-0193

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.

Filed: April 29, 2024

Hearing: May 22, 2024, 9:00 a.m.

This is a hybrid meeting conducted in-person and virtually via Microsoft Teams. See Notice of Proposed Rulemaking for Teams meeting instructions.

Last day/time to offer comment: May 29, 2024, 5:00 p.m. 

Exhibit 3A Final clean SB 536 Exhibits (DFR preferred) – Final 4.29.24 4.pdf

Exhibit 2A Final clean SB 536 Exhibits (DFR preferred) – Final 4.29.24 3.pdf

Exhibit 1A Final clean SB 536 Exhibits (DFR preferred) – Final 4.29.24.pdf

For more information on this recently adopted rule, please visit the division’s website:

https://dfr.oregon.gov/laws-rules/Documents/Proposed/20240522-annuities-disclosure-obligations.pdf

Oregon — The Oregon Division of Financial Regulation recently announced the following permanent rulemaking: ID 3-2024: Rules implementing insurer and PBM reporting requirements of SB 192 (2023)

Amend Rule: 836-053-0473

​Rule Summary: This rule describes the materials that must be filed by an insurer as part of a rate filing for small group and individual health benefit plans. The amendment removes the language related to annual reporting by insurers for the Drug Price Transparency program.

Adopt Rule: 836-053-1630

Rule Summary: This rule restates the language removed from OAR 836-053-0473 with slight modification to reflect the expanded reporting requirements. This rule describes the information that must be submitted by insurers annually to the Drug Price Transparency program.

Adopt Rule: 836-200-0418

Rule Summary: This rule describes the information that must be submitted to the department annually by Pharmacy Benefit Managers under SB 192 (Oregon Laws 2023, chapter 466).

Filed: April 29, 2024

Effective: May 1, 2024

Oregon — Updated Product Standards:

440-3165b SG HBP –

440-4869 for VPP Product standards along with updated instructions

440-4868 for OB Product Standards along with updated instructions

Current forms list has been added to our website:

This e-notify was distributed to the following groups:

● Rates & Forms Updated Product Standards​

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Washington — Kreidler fines Fred Meyer $100,000 for unlawfully selling insurance: Washington state Insurance Commissioner Mike Kreidler issued a cease-and-desist order and fined Fred Meyer Stores, Inc., $100,000 for selling insurance without state authorization.

Fred Meyer stores sold the GUARD Protection Plan, issued by Mack Camera & Video Service, to a consumer in Washington. That consumer filed a complaint with the Office of the Insurance Commissioner about the service contract, alleging claim delay and misrepresentation.

The OIC determined that the GUARD plan, which Fred Meyer sold from June 2016 to November 2022, constitutes a service contract and insurance. The company received $40 from Mack Camera & Video Service per contract sold at Fred Meyer stores.

Service contract providers must register with Kreidler’s office to do business in Washington state. Fred Meyer is not licensed to sell insurance.

Fred Meyer’s parent company, The Kroger Co., declined to provide the total number of GUARD products sold to Washington consumers, the amount Fred Meyer received from GUARD sales, or what service contractor would be providing service contracts after its contract with Mack ended.

The order was filed on May 1, 2024. The retail chain has 90 days — until July 30 — to request a hearing; if no hearing is requested, the fine will be due within 30 days.

Fines issued in April

In addition to the Fred Meyer fine, Kreidler’s office issued $22,000 in fines in April for violations of state insurance laws and regulations. The other fines included:

American Guarantee & Liability Insurance Company, New York, NY; fined $2,500 (order 24-0040).

    The company applied incorrect rating factors in nine instances in 2022.

Olga Radutskiy, Pronto Insurance Agency, Bellevue, Wash.; fined $1,000 and placed on probation (order 24-0008).

    Radutskiy failed to produce financial records and documents upon request from the OIC.

Kaiser Foundation Health Plan of the Northwest, Portland, Ore.; fined $2,500 (order 24-0029).

    Kaiser failed to timely file four large group negotiated rate filings.

Esurance Insurance Company, Northbrook, Ill.; fined $15,000 (order 24-0034).

    Esurance assigned incorrect protection classes to 1,139 home insurance policies, with a financial impact of $86.217. The company waived $5,531 in undercharges and made reimbursements for $80,686 in overcharges.

Forethought Life Insurance Company, Batesville, Ind.; fined $1,000 (order 24-0026).

    Forethought filed Medicare Supplement Insurance rate filings more than a month after the May 31 deadline in 2022.

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