COVID-19 Daily Insurance Regulatory Updates To Keep You Informed During The Lockdown (May 12, 2020)
May 12, 2020

In conjunction with the Locke Lord COVID-19 task force, we are reviewing, analyzing, and compiling regulatory updates to provide clients easy access to information during this unprecedented time. If you have any questions on the subject matter below, do not hesitate to reach out. The information below relates to state and federal bulletins, emergency orders, pending/enacted legislation, and other related actions taken in response to the COVID-19 pandemic.

All Lines of Insurance

Arkansas: On May 11, the Arkansas Department of Insurance issued Bulletin No. 20-2020, to all admitted and surplus lines insurance carriers, rescinding COVID-19 bulletins released in furtherance of Executive Order No. 20-03. The following Bulletins have been rescinded:

  • Bulletin 6-2020: State COVID-19 Health Emergency
  • Bulletin 7-2020: Pharmacy Benefit Managers & the State Price Gouging Law
  • Bulletin 8-2020: Suspension of Random Audits of Pharmacies
  • Bulletin 10-2020: Suspension of Consumer Signature Requirement for Pharmacists Services
  • Bulletin 11-2020: License Renewal and Continuing Education
  • Bulletin 12-2020: Cancellation Moratorium for Employment Disruption
  • Bulletin 13-2020: Reimbursement for Telemedicine
  • Bulletin 15-2020: Health Provider Audit Suspension
  • Bulletin 16-2020: Title Insurance Audit Suspension
  • Bulletin 18-2020: COVID-19 Financial Regulatory Compliance

Arkansas: On May 11, the Arkansas Department of Insurance issued Bulletin No. 21-2020, to all admitted and surplus lines insurance carriers, providing policyholders an additional 45-day moratorium on the cancellation or nonrenewal of personal lines policies if they have been diagnosed/tested positive for COVID-19 or have been unable to pay their premiums due to a job loss caused by COVID-19.

Arkansas: On May 11, the Arkansas Department of Insurance issued Bulletin No. 22-2020, to all admitted and surplus lines insurance carriers, providing guidance to consumers and the industry on complaints, claims settlement, filings, on-site examinations, license renewals, and continuing education.

Delaware: On May 8, Governor Carney issued the Second Extension of the State of Emergency due to COVID-19, first declared March 12, 2020 and subsequently modified, until after May 31, 2020 or the public health threat from COVID-19 has been eliminated, whichever is later.

Kansas: On May 11, the Kansas Department of Insurance issued revised FAQs related to COVID-19.

Louisiana: APCIA is reporting that the Louisiana Department of Insurance amended Emergency Rule 40 will not be extended and will expire as scheduled at 11:59 p.m. on May 12, 2020. Emergency Rule 40 stated that insurers cannot cancel or nonrenew policies that were in effect on or before March 12, 2020, except for fraud or material misrepresentation, or the written request by the insured. The Rule applies to authorized and surplus lines insurers. Additionally, on May 11, the Emergency Rule was amended, clarifying the rates that insurers must use when renewing policies during the COVID-19 emergency and the elimination of all provisions pertaining to premium financing arrangements.

Missouri: On May 12, the Department of Commerce & Insurance released Insurance Bulletin 20-11, temporarily waiving the requirement that title insurers annually conduct “on-site” reviews of title agencies, and allowing a portion of the review to be conducted electronically as long as the on-site portion of the review is completed by December 31, 2020.

New York: On May 7, Governor Cuomo issued Executive Order 202.28, continuing temporary suspension and modification of law relating to the disaster emergency. The Executive Order states that the Governor continues “the suspensions and modifications of law, and any directives, not superseded by a subsequent directive, made by Executive Order 202 and each successor Executive Order up to and including Executive Order 202.14, for 30 days until June 6, 2020, except as modified [in Executive Order 202.28]…” Among other things, the suspension or modification of the following statutes and regulations are not continued including, certain admission and discharge policies of hospitals, public health laws pertaining to the emergency medical services council and the state medical services advisory committee, certain education laws, and various provisions pertaining to court appearances and other criminal proceedings.

Property Casualty Insurance

Nevada: On May 11, the Nevada Division of Insurance issued guidance requesting that insurers offering workers’ compensation insurance take steps to accommodate insureds affected by the COVID-19 pandemic including self-audits, self-reporting, and virtual audits.

Virginia: On May 11, the Virginia Bureau of Insurance issued guidance encouraging all insurers licensed to write property and casualty insurance, specifically those that write replacement cost coverage on dwellings and buildings to consider, consistent with prudent insurance practices, relaxing requirements for insureds to make their replacement cost claims after ACV payments are made.

Health Insurance

Montana: On May 12, the Commissioner of Securities & Insurance released an Advisory Memorandum Update, providing an update to the Advisory Memorandum dated April 9, 2020. This Update adjusts the filing date for health insurers intending to issue or renew health insurance in 2021, reflecting the release of the Final Notice of Benefit and Payment Parameters for 2021 by CMS on May 7, 2020.

Utah: On May 12, the Utah Insurance Commissioner released Bulletin 2020-11 regarding the use of telehealth during the COVID-19 Pandemic. Acknowledging that Payors and Providers have raised concerns over the coding of telehealth and corresponding compensation, the Bulletin discusses proper billing codes and the expansion of CPT telehealth code list by the American Medical Association.

West Virginia: On May 11, Insurance Commissioner Dodrill issued Emergency Proceeding: 20-E0-07, requiring that health insurers offering group health plans and/or individual health insurance coverage in the state must, effective March 18, 2020, provide benefits for diagnostic testing for COVID-19, and related services, for residents and staff of Assisted Liing Facilities and Residential Care Communities, as identified in Executive Orders 27-20 and 35-50.

Visit our COVID-19 Resource Center often for up-to-date information to help you stay informed of the legal issues related to COVID-19.

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