Highlights of the National Conference of Insurance Legislators (NCOIL) Spring Meeting in Charleston, South Carolina, February 27 to March 1, 2015

MEDICAID INTERCEPTION
The Property and Casualty Insurance Committee adopted an amended 2014 NCOIL Model Act Regarding Medicaid Interception of Insurance Payments, which was approved by the Executive Committee later that day. The amended model creates an exemption for payments that a property-casualty insurer makes to fund a structured settlement annuity, as well as for payments made to the claimant under a structured settlement annuity.  The structured settlement would need to be established more than 24 months from the date of loss.

The amendment addresses the requirement that Medicaid beneficiaries assign to the state their rights to reimbursement of payments that Medicaid made on their behalf—in cases when the Medicaid beneficiary receives non-Medicaid money to cover those same expenses.

ROOFING CONTRACTOR FRAUD
The Property and Casualty Insurance Committee discussed a proposed Roofing Contractor Licensure Model Act.  The proposed model would establish minimum standards for roofing.  The proposal would (1) require various disclosures, including an approximate cost estimate; (2) allow a consumer to cancel the contract if the consumer’s insurer denies all or part of the claim; (3) require a contractor to return any payments or deposits that the consumer made to the contractor, except for cost of providing emergency services, if the consumer cancels the contract; (4) require contractors to maintain certain insurance coverages; (5) establish contractor prohibitions, penalties, and licensing requirements; and (6) allow certain exemptions.  Action was deferred.

TRANSPORTATION NETWORK COMPANIES/RIDESHARING
The Property and Casualty Insurance Committee considered a proposed Model Act to Regulate Insurance Requirements for Transportation Network Companies and Transportation Network Drivers.  As currently proposed, the model would preempt local ordinances and laws.  It would establish, among other insurance requirements, that the entities must provide primary liability coverage, beginning when a TNC driver is logged into the TNC’s online system and is waiting to be matched with a passenger until the passenger is out of the vehicle at his/her destination.  The proposed model calls for various disclosures to TNC drivers and to passengers.  It would not require private passenger auto insurance policies to cover a driver’s TNC activity. Action was deferred.

COVERAGE FOR OBESITY TREATMENTS
The Health Insurance Committee discussed a proposal to address cost or obesity treatments and other concerns raised.  The current proposal supports increased health insurance coverage for obesity treatments, including pharmacotherapy and bariatric surgery.   The proposal also encourages implementation of chronic disease management programs, funded through state programs and/or other sources that cover various treatments.  Action was deferred.

LEGISLATIVE TOOLKIT FOR STATE ADVOCACY
The International Committee and Task Force adopted in concept a proposed Legislative Toolkit Advocating for State-Based Regulation in International Insurance Discussions.  The Toolkit sections addresses global capital requirements, group-wide supervision, market conduct, corporate governance, covered agreements, and trade agreements, as well as transparency concerns related to the International Association of Insurance Supervisors. 

PROFESSIONAL EMPLOYER ORGANIZATIONS (PEOs)
The Workers Comp Committee determined to form a Task will work with interested parties to develop proposed amendments to an NCOIL Model Act Regarding Workers’ Compensation Insurance Coverage in Professional Employer Organization (PEO) Relationships.  Proposed amendments to the model would address guaranty fund issues and other concerns raised by interested parties.  As adopted, the NCOIL model requires PEO registration and, among other things, establishes that workers’ comp insurance premiums are determined using a PEO client’s risk exposure and claims experience.

OTHER SESSIONS
 
CYBER SECURITY AND INSURANCE:  WHAT HAPPENS WHEN "THE BIG ONE" HITS?
Panel on how cyber-risk affects the insurance industry and efforts, both public- and private-sector, to address emerging concerns. The session examined the types of events insurers should be concerned about, why and how breaches of security are possible, how regulators are addressing cyber liability concerns, and how cyber insurance issues are playing out in the larger financial services sector.

DRUG PRICES:  HOW MUCH IS TOO MUCH?  AND WHERE WILL STATES DRAW THE LINE?
Panel on why drug prices are so high and what the cost of specialty drugs means for patient care, state budgets, and future innovations.  The session also addressed, among other things, how drug prices in the U.S. compare to those in other countries.