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Volume 1, No. 7 - October 2010
 
News You Can Use
- Updating you on what's going on


National Flood Insurance Program Reauthorization
On September 30, 2010, the President signed the National Flood Insurance Program Reextension Act of 2010, which Congress passed on September 24, 2010. This extends the National Flood Insurance Program until September 30, 2011.
Click here to read information from FEMA >>>

FLOIR Issues Reminder on Changes in Life and Annuity Sales
The Florida Office of Insurance Regulation (FLOIR) issued Information Memorandum OIR-10-7M on October 6, 2010. The purpose of the memorandum is to remind of the legislative creation of Section 627.4605, Florida Statutes (F.S.) and the amending of Sections 627.464, 627.552 and 627.5575, F.S. enacted in Chapter 2010-61, Laws of Florida. For example, one of the amendments include when a notice of replacement of a life insurance policy is not required. The memorandum is not intended to be a comprehensive analysis of the bill.
Click here to read the informational memorandum >>>

FHIAB Adopts Resolution to Request Waiver from MLR Requirements
The Florida Health Insurance Advisory Board (FHIAB) recently held a joint public hearing with the Florida Office of Insurance Regulation in Tallahassee. During their meeting, the FHIAB adopted a resolution to request a waiver from the U.S. Department of Health and Human Services regarding the implementation of the medical loss ratio (MLR) requirements on January 1, 2011. The meeting also included an update on the federal health care legislation by Florida Deputy Insurance Commissioner Mary Beth Senkewicz, and approval of the 2009 FHIAB Report that summarizes the status of the Florida health care marketplace.
Click here to read more from FHIAB >>>

NAIC Unanimously Approves MLR Recommendations
The NAIC voted on October 21 to adopt a model regulation containing the definitions and methodologies for calculating medical loss ratios as required by the Patient Protection and Affordable Care Act (PPACA). The model will be delivered to Department of Health and Human Services (HHS) for certification by the Secretary. The model requires health insurance companies to direct more of the premiums they collect to medical care, rather than corporate salaries and profits. Under the law passed in March, large group health plans must allocate at least 85 cents per premium dollar to medical care, not administrative costs or profit. Plans for individuals or small groups must spend 80 cents per dollar.
Click here to read the NAIC's release >>>

Proposed Rules on Unlawful Inducements
There will be an additional public hearing on the proposed rules regarding unlawful inducements. The proposed rules define the term "unlawful inducement" and provide examples of prohibited acts and practices that are unlawful inducements to purchase insurance. One of the rules is specifically for title insurance. The hearings will be held on November 15 for the proposed rules.
Click to read the rule notices: <General> <Title>

Proposed Rule for Annuity Policy Cover Pages
The purpose of the proposed rule amendment is to reflect certain provisions of Senate Bill 2176 passed by the 2010 Florida Legislature, which require cover pages for fixed and variable annuity contracts. The effect of the proposed rule amendment is to provide clear and concise information to consumers regarding their rights to cancel annuity contracts and to receive unconditional refunds. In addition to the mandatory formatting requirements, the proposed rule amendment requires that annuity cover pages contain specific cautionary language to inform consumers of the risks, policy features and contact sources for those seeking additional information or to report complaints. A workshop will be held on December 13.
Click here to read the rule notice>>

Fraudulent Calls Claiming to Be Department Staff
We are advising all licensees to be cautious if you receive a phone call from any unknown person claiming to be a Florida Department of Financial Services (“Department”) employee if you do not have any pending issues to warrant the call. Agents and adjusters in other states have reported receiving calls from fraudsters claiming to be their home state’s regulator alerting to a pending administrative action and requesting personal information as well as credit card information. While we have no report of this fraudulent activity claiming to be our Department’s staff, we want our licensees to be aware as to not become a victim. At no time would a Department employee request your credit card information via telephone. If anything legitimately occurs that would affect your application or license, you would be contacted by e-mail or regular mail correspondence directly from the Department. It is because of this we remind you to see the below message about having your contact information up-to-date with us, most importantly your e-mail address. If you receive such a call, do not provide any credit card information to the caller and please e-mail the details of the call to us directly at askDFS@MyFloridaCFO.com.

Make sure you get official notices from us
Add FloridaAgentLicensing@MyFloridaCFO.com to your Safe Senders List to ensure you are able to receive all notifications from us. Licensees who have a valid e-mail address on file with us, as required by law, receive important e-mail notifications when something that affects your application, license, continuing education, or appointment(s) occurs.  Additionally, we can keep you informed with warnings regarding new schemes and scams being marketed to licensees.  You can update your contact information through your MyProfile account.  We want to keep you informed in a timely manner of pertinent information important to you. You are still required to abide by the Florida Insurance Code regardless of whether you read the information we provide.