Changes to Required Notice Regarding Coverage Limitations and Exclusions

BULLETIN 07-04 Date: January 22, 2007 To: Life Insurers, Health Insurers, and Nonprofit Health Service Plans Re: Changes to the Required Notice Regarding Coverage Limitations and Exclusions under the Life and Health Insurance Guaranty Corporation The purpose of this bulletin is to notify insurers writing life insurance, health insurance, or annuity products in Maryland of changes to the notice required to be provided to policyholders regarding the coverage limitations and exclusions under the Life and Health Insurance Guaranty Corporation. COMAR 31.04.14.03 sets forth the text of the notice required to be provided to a policyholder, if the policyholder's life insurance, health insurance, or annuity contract exceeds, at the time of delivery, the limitations imposed under Insurance Article, §9-407(j), Annotated Code of Maryland. The notice is also required when the life insurance, health insurance or annuity contract is not subject to coverage under Insurance Article, §9-403, Annotated Code of Maryland. The text of the notice is being amended to replace obsolete references to "agent" with the term "insurance producer." A copy of the text of the amended notice was published in Volume 33, Issue 22, of the Maryland Register, dated October 27, 2006. The amended regulations were finalized in Volume 34, Issue 1 of the Maryland Register, dated January 5, 2007, with an effective date of May 1, 2007. For your convenience, a copy of the text as published in the Maryland Register is attached. Insurers may begin to use the new notice text immediately, and are required to begin using the new notice text by May 1, 2007. Any questions about this bulletin should be directed to the Life/Health Section of the Maryland Insurance Administration, at (410) 468-2170. R. Steven Orr Insurance Commissioner By:______________________ Howard Max Associate Commissioner Life and Health Section R. STEVEN ORR Commissioner JAMES V. MCMAHAN, III Deputy Commissioner HOWARD MAX Associate Commissioner Life and Health MARTIN O’MALLEY Governor ANTHONY G. BROWN Lt. Governor 525 St. Paul Place, Baltimore, Maryland 21202-2272 Direct Dial: 410-468-2205 Fax: 410-468-2204 Email: hmax@mdinsurance.state.md.us 1-800-492-6116 TTY: 1-800-735-2258 www.mdinsurance.state.md.us