Mass. DOI To Hold Hearings On Insurance Regulations Including Continuing Education for Insurance Producers

The DOI has scheduled three hearings to review various Health, Auto, Workers’ Comp., Financial and Miscellaneous insurance regulations

The Massachusetts Division of Insurance has announced that it will hold hearings on July 18th, 19th and 26th to discuss various insurance regulations which include either a proposal for amendments or rescission. In its official announcement, the DOI assigned each regulation being review a specific docket number as well as including a short description of the actions proposed for that regulation. The following excerpts include the hearings dates scheduled for the regulations along with a reprint of the descriptions provided by the DOI.

DOI will review amendments to the regulation concerning Continuing Education for Insurance Producers

On July 19th, the DOI has scheduled a hearing at 10:00 to discuss the amendments or rescission of various miscellaneous and financial insurance regulations. One of these miscellaneous regulations which might be of interest to all insurance producers concerns 211 CMR 50.00: Continuing Education for Insurance Producers. The following is a description of the changes being considered to that regulation:

Docket No. G2016-10

211 CMR 50.00. Continuing Education for Insurance Producers. The regulation sets out requirements for compliance with statutorily mandated continuing education for Massachusetts resident insurance producers. The proposed amendments conform the regulation to legislative changes to the enabling statute.

The proposed regulations may be inspected in the Division’s offices during normal business hours or viewed on the Division’s website, www.mass.gov/doi. Persons who wish to present unsworn oral or written statements at the July 19, 2016 hearing are asked to submit a notice of intent to comment no later than July 15, 2016. Other persons who wish to speak will be heard after those who notify the Division in advance. The hearing record will remain open for a week after conclusion of the July 19, 2016 hearing to receive any additional written statements.

Other hearing dates and the regulations to be reviewed

The following is a reprint of the remaining regulations to be review that we thought might be of interest to the property and casualty insurance community. A complete list of the regulations to be review can be accessed on the Division’s website.

July 18, 2016 10:00 AM Hearing: Workers’ Compensation Regulations to be reviewed

This hearing will be held at 10:00 a.m. on July 18, 2016, Hearing Room 1-E.

Docket No. G2016-11

211 CMR 67.00. Workers’ Compensation Self-Insurance Groups. The regulation implements the provisions of M.G.L. c. 152, §§25E through 25U, that governs the formation, operation and oversight of all workers’ compensation self-insurance groups in Massachusetts. The Division proposes to amend 211 CMR 67.00 to revise definitions, to further define the types of investments in which the group may invest and acceptable forms of security, to revise the requirement for experience rating for certain groups, to remove the authority to acquire actuarial services from the group administrator, and to authorize the Commissioner in certain circumstances to waive some requirements for the purchase of reinsurance. Other amendments delete outdated provisions and make changes necessary to conform 211 CMR 67.00 to current Massachusetts insurance laws.

Docket No. G2016-12

211 CMR 113.00. Requirements Regarding Workers’ Compensation Insurance Deductibles.

211 CMR 115.00. Requirements Applicable to Workers’ Compensation Deductible Policies.

211 CMR 113.00, promulgated in 1992, established conditions for offering reasonable claim deductibles and premium credits on all workers’ compensation insurance policies. 211 CMR 115.00, promulgated in 2003, established conditions specifically applicable to offers of “large deductible” policies. The Division proposes to integrate the provisions of 211 CMR 113.00 into 211 CMR 115.00, creating a single comprehensive regulation governing all workers’ compensation insurance policy deductible plans and premium credits on small and medium deductible plans. Concurrently with amending 211 CMR 115.00, the Division proposes to rescind 211 CMR 113.00 because it is no longer necessary.

The proposed regulations may be inspected in the Division’s offices during normal business hours or viewed on the Division’s website, www.mass.gov/doi. Persons who wish to present unsworn oral or written statements at the July 18, 2016 hearing are asked to submit a notice of intent to comment no later than July 14, 2016. Other persons who wish to speak will be heard after those who notify the Division in advance. The hearing record will remain open for a week after conclusion of the July 18, 2016 hearing to receive any additional written statements.

All notices and submissions must refer to the Docket Number(s) for the particular regulation(s) that the person intends to address. Notices and submissions in hard copy may be sent by mail to the Docket Clerk, Hearings and Appeals, Division of Insurance, at the address above or by electronic mail to doidocket.mailbox@state.ma.us.

July 18, 2016 11:00 AM Hearing: Auto Insurance Regulations to be reviewed

This hearing will be held at 11:00 a.m. on July 18, 2016, Hearing Room 1-E.

Docket No. G2016-13

211 CMR 3.00. Motorcycle Insurance. The regulation allows insurers to exclude from motor vehicle insurance covering a motorcycle Personal Injury Protection for bodily injury suffered by the operator of the motorcycle or a guest passenger while operating or riding on the motorcycle. The proposed amendments conform the language in 211 CMR 3.00 to definitions of motorcycle used by the Registry of Motor Vehicles and remove outdated references to the procedure to fix-and-establish motor vehicle insurance rates.

Docket No. G2016-14

211 CMR 54.00.   Procedure for Surrender and Non-Renewal of Licenses by Insurers Authorized to Write Motor Vehicle Insurance. The regulation governs the administrative process by which insurers authorized to write motor vehicle insurance may initiate the surrender or nonrenewal of their licenses to write such coverage. The proposed amendments conform the regulatory language to the current language in the Commonwealth Automobile Reinsurers Rules of Operation and remove obsolete references to organizations that no longer exist.

Docket No G2016-15

211 CMR 92.00.   The Safe Driver Insurance Plan [for 1994]. The regulation was one of many periodically promulgated to implement the Safe Driver Insurance Plan (“SDIP”) that was approved as part of the process to fix-and-establish motor vehicle insurance rates under M.G.L. c. 175, §113B. In 1996, the Commissioner promulgated 211 CMR 134.00, which replaced all prior regulations relating to the SDIP. The intent was to rescind 211 CMR 92.00, but no formal rescission occurred. Rescission at this time removes an obsolete regulation that has not been used for many years.

Docket No. G2016-16

211 CMR 97.00.   Procedures for Cancellation and Non-Renewal of Motor Vehicle Insurance Policies. The regulation establishes the procedures that insurance companies, insurance producers and consumers must follow in order to cancel or non-renew motor vehicle insurance policies. The proposed amendments provide additional protections for motor vehicle insurance policyholders, such as prohibiting non-renewal for any reason prohibited by law.

The proposed regulations may be inspected in the Division’s offices during normal business hours or viewed on the Division’s website, www.mass.gov/doi. Persons who wish to present unsworn oral or written statements at the July 18, 2016 hearing are asked to submit a notice of intent to comment no later than July 14, 2016. Other persons who wish to speak will be heard after those who notify the Division in advance. The hearing record will remain open for a week after conclusion of the July 18, 2016 hearing to receive any additional written statements.

All notices and submissions must refer to the Docket Number(s) for the particular regulation(s) that the person intends to address. Notices and submissions in hard copy may be sent by mail to the Docket Clerk, Hearings and Appeals, Division of Insurance, at the address above or by electronic mail to doidocket.mailbox@state.ma.us.

July 19, 2016 10:00 AM Hearing: Miscellaneous Insurance Regulations to be reviewed

Docket No. G2016-08

211 CMR 10.00. Nation-Wide Marine Definitions

211 CMR 11.00. Insurance on Outboard Motors and Motor Boats

The existing 211 CMR 10.00 incorporates by reference the definition of Inland Marine Insurance adopted by the National Association of Insurance Commissioners (“NAIC”) in 1977 and now widely used nationwide. 211 CMR 11.00 relates only to inland marine coverage applicable to particular types of property. The Division proposes to amend 211 CMR 10.00 to incorporate the NAIC definition in its entirety, and to integrate the provisions of 211 CMR 11.00 into the amended 211 CMR 10.00, thereby creating a single comprehensive regulation governing definitions of inland marine insurance. Concurrently with amending 211 CMR 10.00, the Division proposes to rescind 211 CMR 11.00 because it is no longer necessary.

Docket No. G2016-09

211 CMR 15.00. Statistical Plans. The regulation now identifies specific statistical plans, applicable to separate lines of insurance that insurers must use to report data to the Division. Many of those plans have been superseded over time. The proposed amendment will delete references to specific plans and replace it with language adopted from a Model Regulation to Require Reporting of Statistical Data by Property And Casualty Insurance Companies developed by the NAIC to provide guidance to insurers and their statistical agents.

Docket No. G2016-10

How to review the regulations and submit a comment….

All of the proposed amendments or rescissions to the above regulations may be inspected at the DOI offices during normal business hours. They also can be reviewed on the Division’s website, www.mass.gov/doi. The DOI requests that individuals interested in presenting unsworn oral or written statements at any of the July 18th or 19th hearings submit a notice of intent to comment no later than July 14th for the July 18th hearing date or July 15th for the July 19th hearing date. Anyone else who wishes to speak will be heard after those who notify the Division in advance. The hearing record will remain open for a week after conclusion of both the July 18th and 19th hearings in order to receive any additional written statements.

Please note that any and all notices and submissions to the Division must refer to the Docket Number(s) for the particular regulation(s) that the person intends to address. Notices and submissions in hard copy may be sent by mail to the Docket Clerk, Hearings and Appeals, Division of Insurance, at the address above or by electronic mail to doidocket.mailbox@state.ma.us.