Bulletin 63 Supplement

Bulletin 63 Supplement SUPPLEMENT TO BULLETIN 63 May 18, 1990 A number of insurers have asked for a clarification as to how to comply with Bulletin 63 which requires that on or after July 1, 1990, all insurers licensed to do business in Indiana must provide to each current policyholder a one time written notice of the remedies outlined in Senate Enrolled Act 211 (P.L. 149- 1990). In complying with this new law, it is the department’s position that insurers can send the one-time notice to all current Indiana policyholders by sending the notice as the policy is renewed. The term “policyholder” should apply to master policyholders, certificate holders, under a policy of insurance. The term does not include holders of fidelity or surety bonds, financial guarantee funds, title insurance or reinsurance contracts. Attached to Bulletin 63 was suggested language for the notice. In following this language, each insurer may wish to include a company complaint or customer relations number as well and indicate that policyholders should call that number first. In this way, if a policyholder has a problem, the insurer has the first opportunity to solve the problem. The insurance department should be viewed as an appeals process and should be used only after the policyholder has exhausted his/her rights with the insurer. It is also the insurance department’s position that it is not mandatory that the insurer’s notice be filed with the department – however the notice should be made available during market conduct examinations. It is our hope that this clarification addresses the concerns raised by Bulletin 63. If you have other concerns, please contact the Department. John J. Dillon III Commissioner