2014 Legislative Changes

Department of Business Regulation Insurance Division 1511 Pontiac Avenue, Bldg. 69-2 Cranston, Rhode Island 02920 Insurance Bulletin Number 2014-5 2014 Legislative Changes The following legislative amendments were enacted during the 2014 session of the Rhode Island General Assembly. This information is being provided in accordance with R.I. Gen. Laws § 27-71-14(a). This bulletin is being provided for informational purposes only and may not be an all-inclusive list of enactments that impact the insurance industry. Licensees should refer to the statute itself to determine the impact. Any person wishing to be included in these annual notifications pursuant to R.I. Gen. Laws § 27-71-14(b) who is not currently on the interested parties list should send an email request to DBR.insnotice@dbr.ri.gov Fraternal Code H7475 2014 P.L. ch. 122 Effective June 16, 2014 S2786 2014 P.L. ch. 105 Effective June 16, 2014 This legislation was introduced at the request of the Department to remove the exemption from the Fraternal Code for persons engaged in hazardous occupations. Without the exemption those offering coverage under the Fraternal Code must be licensed as domestic or foreign fraternal societies. Automobile Self Insurance H7541aa 2014 P.L. ch. 36 Effective May 16, 2014 S2446 2014 P.L. ch. 29 Effective April 18.2014 This legislation was introduced at the request of the Department of Motor Vehicle with the consent of the Department of Business Regulation to move jurisdiction over those entitles that are permissibly self-insurance under the compulsory automobile insurance statute to the Department of Business Regulation for purposes of certification of selfinsured status. Corrections H7715A 2014 P.L. ch. 94 Effective June 10, 2014 S2784Aaa 2014 P.L. ch. 91 Effective June 10, 2014 This legislation was introduced at the request of the Department to correct nonsubstantive errors in the Standard Nonforfieture statute. The legislation also 2 removed a certification requirement for Third Party Administrators that will allow the Department to move that license type to electronic licensing. Insurance Claims Adjusters H7544A 2014 P.L. ch. 195 Effective January 1, 2015 S2788A 2014 P.L. ch. 107 Effective January 1, 2015 This legislation was introduced at the request of the Department to divide insurance adjusters into three categories (1) public, (2) independent and (3) company. The legislation also incorporated much of the National Association of Insurance Commissioners model laws on public and independent adjusters. Title Insurance H7978 2014 P.L. ch. 521 Effective July 8, 2014 S2816 2014 P.L. ch. 488 Effective July 8, 2014 This legislation was introduced at the request of the Department. The amendment removes a potential issue faced by title insurance producers that are also attorneys in execution of their obligation to cooperate with the title insurance audits conducted pursuant to R.I. Gen. Laws § 27-2.6-13. Life Insurance – Death Master Files H7031A 2014 P.L. ch. 183 Effective January 1, 2016 S2308A 2014 P.L. ch. 209 Effective January 1, 2016 This legislation adopts a statutory framework for life insurance companies to compare their rolls of insured with the Death Master File in an attempt to locate policies upon which benefits should be paid or escheated. The statute is based on a National Association of Insurance Legislators (NCOIL) Model Act. Electronic ID Cards H7098 2014 P.L. ch. 24 Effective April 18, 2014 S2444 2014 P.L. ch. 28 Effective April 18, 2014 This legislation, along with that listed below; amends all Rhode Island statutes regarding automobile identification cards used for proof of compulsory insurance. These changes will allow insurers to offer consumers the ability to elect use of an electronic ID card rather than a hard copy document. Electronic ID Cards H7125A 2014 P.L. ch. 44 Effective May 27, 2014 S2055A 2014 P.L. ch. 51 Effective May 27, 2014 This legislation, along with that listed above; amends all Rhode Island statutes regarding automobile identification cards used for proof of compulsory insurance. 3 These changes will allow insurers to offer consumers the ability to elect use of an electronic ID card rather than a hard copy document. Social Media H7124B 2014 P.L. ch. 188 Effective June 30, 2014 This legislation restricts an employer’s access to personal social media of an employee. It provides an exception to this requirement for insurers to monitor or supervise communications related to the regulation of insurance. Workers Compensation Court H7260 2014 P.L. ch. 78 Effective June 9, 2014 S2543 2014 P.L. ch. 87 Effective June 9, 2014 This legislation clarifies and updates the practice and procedures of the workers compensation court and allows the court to move forward with electronic filing. Workers Compensation Omnibus H8282aa 2014 P.L. ch. 231 Effective July 1, 2014 S3053Aaa 2014 P.L. ch. 289 Effective July 1, 2014 This legislation, submitted by the Workers Compensation Advisory Council, makes a number of changes to the practice and procedures of the workers compensation court and benefits available to claimants. Coverage Reduction H7535A 2014 P.L. ch. 396 Effective July 1, 2015 S2307A 2014 P.L. ch. 361 Effective July 1, 2015 This legislation amends the statute governing notices concerning reductions of coverage and increases in deductibles. It provides for four alternative methods of delivering those notices. The Department will be amending Insurance Regulation 97 to address these changes. Title Insurance Closing Protection Letters H7792A 2014 P.L. ch. 393 Effective July 2, 2014 S2447aa 2014 P.L. ch. 354 Effective July 2, 2014 This legislation codifies and authorizes title insurance companies to provide closing protection letters to protect consumers from the adverse effects of defalcation of improper distributions at the closing of a real estate transaction. 4 Mortgage Foreclosure Mediation H8293A 2014 P.L. ch. 543 Effective October 6, 2014 This legislation made some clarifying amendments to the mortgage foreclosure process enacted last year. The amendments are designed to clarify the process and the status of the title after the mediation process is concluded. The Department will be amending Banking Regulation 5 to incorporate the amendments. Post Payment Audits H7790A 2014 P.L. ch. 201 Effective January 1, 2015 S2536A 2014 P.L. ch. 214 Effective January 1, 2015 This legislation amends the post payment audit statutes to include healthcare facilities including mental health and substance abuse treatment facilities within the definition of health care provider. Nutrition Products H7903A 2014 P.L. ch. 519 Effective July 8, 2014 S2505A 2014 P.L. ch. 269 Effective July 15, 2014 This legislation extends the nutrition products statutes to all recipients regardless of age and removes the monetary cap on coverage. Substance Abuse and Addiction H8042A 2014 P.L. ch. 130 Effective January 15, 2015 S2801Aaa 2014 P.L. ch. 108 Effective January 1, 2015 This legislation provides requirements for the coverage of substance abuse and additional treatment in health insurance policies. Breast Cancer Act H7341A 2014 P.L. ch. 47 Effective May 27, 2014 Requires that all facilities that perform mammography provide in the summary of mammography report the patient individual Breast Tissue Classification based upon the Breast Imaging Reporting and Data System established by the American College of Radiology. Commission to Study Impact of Health Plan Patient Liability Provisions S3133 2014 Resolution 375 Effective June 20, 2014 Seventeen member commission to study the effect of high deductible insurance policies. Commission directed to report to the Senate by February 3, 2015. Expires July 1, 2015. 5 Copies of Rhode Island Insurance Regulations, Insurance Bulletins and applicable Rhode Island General Laws are accessible through these links or by visiting the Department’s website at www.dbr.ri.gov. Copies of the Senate and House bills are accessible through these links or by visiting the Rhode Island General Assembly website at www.rilin.state.ri.us. In light of the above amendments, insurers are required to review current policy forms, rules and rates to determine if new and/or revised filings are required and to timely submit such filings in SERFF for the Department’s review and approval. Joseph Torti III Superintendent of Insurance August 5, 2014