Recent Compliance News and Notes

Here are some legislative snippets before heading off for a week at the shore.

CT SB 34, which initially called for a ban on offsets for dependent Social Security awards in LTD policies before morphing into a study bill, died upon adjournment of the CT legislature last week…..AL and NV legislatures have just approved the Interstate Compact, and the Compact has recently issued instructions for member companies to extend Compact approved filings for use in IL (at least for products IL has authorized)…..MA Division of Insurance is about to release the results of the survey they conducted last year with disability insurers….OK Department of Insurance published bulletin LH 2011-01 on June 1 advising of the enactment of new rate filing requirements for health products, but clarified that disability income products are not included….MO and ND insurance authorities have recently issued bulletins extending grace periods and other provisions in the wake of natural disasters there.

Group Disability Still On Hold For Interstate Compact

The Interstate Insurance Product Regulation Commission (IIPRC) is in the process of developing product standards for individual disability income products. Once product standards are adopted by the Compact, insurers may file that product for approval by the Compact, which then reviews and approves the filing for marketing in all the states that make up the compact (38 at last count).

A compact official told me last week, however, that it will be well into 2012 before the compact begins working up product standards for group disability products. Next up on the Compact’s docket is doing product standards for group life.

See the Compact’s website for further information at http://www.insurancecompact.org/.