Leader's Edge   Return to Table of ContentsTell the Editor
Leader's Edge

Regulatory News

Group health insurance producers may now make up for reduced commissions from insurers by charging clients a fee. They must obtain a consultant’s license to do so, and the fee plus their commission from the insurer cannot exceed 20% of the premium charged to an employer. Bulletin 06-2012 says the fee won’t be considered an excess charge for insurance but rather a consultation fee. Insurers may charge and collect the fee on behalf of insureds and consultants as long as there’s a written agreement detailing the deal. A policy cannot be terminated “solely because the compensation fee has not been timely paid,” the Insurance Department says.

Restructures broker distribution model for State Compensation Insurance Fund. About 3,500 of its 5,000 or so broker and agent partners must now go through one of two wholesalers, effective Jan. 1, 2013. The new rule applies to agents and brokers whose books of business are $100,000 or less in premium. The two authorized broker “access partners” are StateFund First, which is administered by Arthur J. Gallagher, and RIC Insurance General Agency. The 1,500 broker and agent partners who continue to deal directly with State Fund account for 90% of the fund’s brokered business. >> S.B. 863 approved in both houses. It changes the way workers comp benefits are calculated and eliminates coverage for conditions that commonly lead to lawsuits, including insomnia and mental health problems. It could reduce workers comp rates. It also was amended to help labor unions regain some benefits that were cut back in the 2004 workers comp reforms. Gov. Brown championed the bill. >> S.B. 1448 passes both houses. It gives the insurance commissioner “the authority and tools needed to evaluate the risks that non-insurance entities pose to an insurer in the holding company system,” Commissioner Dave Jones said. It is designed to minimize systemic risk. The bill also allows Jones to participate in meetings of international regulators and share financial and operational information with those groups. >> Workers Compensation Rating Bureau files average advisory pure premium rate increase of 12.6% above what was filed in July. >> A.B. 1846 passes both houses. It allows for new type of nonprofit health insurance called Consumer Owned and Operated Plans (CO-OPs), outlined in Affordable Care Act. The Department of Insurance would license and regulate these new health insurers. CO-OPs may apply for $3.8 billion in low interest loans from the feds. Bill is with Gov. Brown at press deadline. >> Legislature shelves stop-loss bill that would have made it harder for small companies to enjoy the benefits of stop-loss insurance. Commissioner Jones says he’ll bring it back up when legislators reconvene. He wants to close that loophole in the Affordable Care Act, saying it allows insurers to cherry-pick companies in healthier, less risky industries. Jones wants $75,000 per-employee stop-loss limit.

Thomson Reuters is first company to form captive insurer in the state. Marsh Captive Solutions is captive manager for the company. Thomson Reuters Risk Management, the captive company, will insure Thomson Reuters’ workers comp, GL, auto liability, property, terrorism, E&O and personal accident/travel risks in the U.S. Thomson Reuters relocated its captive from Delaware. >> Aetna, ConnectiCare and Anthem requested between 13% and 14% increases for small-business health coverage. That’s just below the 15% increase threshold that would trigger public hearings. Aetna was approved at 12.6%. The requests were posted by the Department of Insurance and made available for public comment.

Insurance Department gives $250,000 in captive insurance surplus money to state. 338 captives in state generated nearly $1 billion in premium and more than $1.2 million in tax revenue last year. Revenue for 2012 has already exceeded operating costs of captive bureau, and that excess amount was transferred to the Secretary of State and designated, per statute, to the City of Wilmington.

National Council on Compensation Insurance seeks statewide average workers comp rate increase of 6.1%, effective Jan. 1, 2013. It would be the third consecutive increase, following an 8.9% rise in 2012 and a 7.8% hike in 2011. Filing has increases for all five major classifications: contracting, 7.4%; goods and services, 6.7%; miscellaneous, 5.6%; manufacturing, 4.8%; and office and clerical, 4.3%. Increases are driven by 6.8% growth in loss experience and medical cost per case.

NCCI proposed 3.8% overall decrease in workers comp advisory rates effective Jan. 1, 2013.

Cedar Rapids received state permission to change its rules to permit redevelopment of four historic or commercial areas in flood plains without flood insurance protection. Some physical barriers to flood damage will be required, and the city is still looking for flood insurance options.

Annual loss-cost filing for workers comp lists seventh consecutive drop. The 2012 National Council on Compensation Insurance filing, approved and effective Oct. 1, shows an average reduction of 7.9% for the state’s 590 industrial classes. For coal industry, underground mining loss costs fell 8.9%. Surface mining dropped 7%.


< Prev1 2 3 Next >
(3 pages)
 Return to Table of Contents

Email PagePrint PageArticle reprintsArticle tools sponsored by

Full Leader's Edge Archive. Previously published articles, listed by subject below.

arrow Industry Leaders    arrow Wholesalers    arrow Legal Issues   arrow Regulatory Issues  
arrow International Risk arrow Human Resources    arrow Sales Issues   arrow Industry News
arrow Regulatory News    arrow Market News   arrow Cartoons