DATE:
JUNE 25, 2015
TO:
NCOIL LEGISLATORS
IEC MEMBERS
SUMMER MEETING ATTENDEES
OTHER INTERESTED PARTIES
FROM:
SUSAN NOLAN
NCOIL EXECUTIVE DIRECTOR
RE:
DOCUMENTS FOR CONSIDERATION AT THE 2015 NCOIL SUMMER MEETING
Legislators will consider proposals on the following key issues during the July 16 through 19 NCOIL Summer
Meeting in Indianapolis, Indiana:
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coverage for obesity treatment
ACA network adequacy
telemedicine reimbursement and licensing requirements
transparency/accountability related to international insurance issues
storm chaser regulation/roofing contractor fraud
transportation network companies (TNCs)/ridesharing
NCOIL professional employer organization (PEO) model act
life insurance/annuities suitability
Materials that have been submitted in accordance with the June 17 NCOIL 30-day deadline rule may be voted
on or discussed at the Summer Meeting. Documents that have not been submitted in accordance with the
rule will require a two-thirds vote of a committee to be considered, followed by a separate two-thirds vote to
adopt. The Executive Committee may consider documents at the Summer Meeting that were approved by
another committee at the meeting. Documents must have a legislative sponsor and may only be moved for
adoption by a Committee member.
HEALTH, LTC & HEALTH RETIREMENT ISSUES COMMITTEE
COVERAGE FOR OBESITY TREATMENTS
On July 16, the Committee will consider a proposed Resolution in Support of Efforts to Reduce the Incidence of
Obesity and Chronic Disease, sponsored by Sen. Marcus Hunter (LA). The proposed resolution would revise a
version previously considered at the 2014 Annual Meeting to address cost and other concerns. The current
proposal supports efforts to increase health insurance coverage for obesity treatments, including
pharmacotherapy and bariatric surgery, and encourages states to select health exchange benchmark plans that
allow for such access. The proposal also encourages implementation of chronic disease management
programs (CDMPs), funded through state programs and/or other sources, that cover various treatments, and it
supports Qualified Health Plans that do the same.
NETWORK ADEQUACY MODEL
On July 16, the Committee will consider a proposed Model Act to Ensure Meaningful Access to Accurate
Provider Directories, sponsored by Rep. Deborah Ferguson (AR) and brought forward by the American Medical
Association (AMA). The proposed model would require insurance department approval of insurance company
provider directories, as well as of annual updates; would identify various contact and other information that
must be included in a directory, including whether physicians and other providers are accepting new patients;
and would set rules for publishing and updating directories. The proposed model also would, among other
things, lay out rules for enforcement and allow for private rights of action.
TELEMEDICINE
During a special meeting on July 17, the Committee will discuss two proposed model laws sponsored for
discussion by Rep. Brian Kennedy (RI) and brought forward by the American Medical Association (AMA). A
proposed Model Telemedicine Reimbursement Act would require coverage for telemedicine services that
would be on par with coverage for in-person treatments. The proposed model also would, among other
things, prohibit insurers from excluding coverage for a service solely because it is provided through
telemedicine. A proposed Model Telemedicine Licensure Act would, in part, require physicians treating
patients to be licensed in the state in which the patient receives care, as well as to be regulated by that state’s
Board of Medicine.
INTERNATIONAL INSURANCE ISSUES COMMITTEE/INTERNATIONAL ISSUES TASK FORCE
TRANSPARENCY/ACCOUNTABILITY REGARDING INTERNATIONAL INSURANCE ISSUES
On July 16, during a joint Committee/Task Force meeting, legislators will consider a proposed Resolution in
Support of Federal Legislation that Supports Transparency, Accountability, and the U.S. System of State-Based
Insurance Regulation, co-sponsored by Committee Chair Rep. Bill Botzow (VT) and Task Force Chair Sen. Dan
“Blade” Morrish (LA). The proposed resolution furthers NCOIL initiatives to preserve state-based oversight and
highlights the success of the U.S. system, noting its transparency and inclusiveness. The proposed resolution
also supports S. 1086, the International Insurance Capital Standards Accountability Act of 2015, and H.R. 2141,
the International Insurance Standards Transparency Act. NOTE: The draft resolution was submitted after the
30-day deadline for the Summer Meeting and so will require a two-thirds vote for Committee consideration and
a separate two-thirds vote for adoption.
PROPERTY-CASUALTY INSURANCE COMMITTEE
ROOFING CONTRACTOR FRAUD/STORM CHASER REGULATION
On July 18, the Committee will consider a proposed Model Storm Chaser Consumer Protection Act, cosponsored by Sen. Jason Rapert (AR) and Rep. Rich Golick (GA). The proposed model would establish minimum
standards for roofing contracts and would (1) require various disclosures, including an approximate cost
estimate; (2) allow a consumer to cancel the contract if the consumer’s insurer denies all or part of the claim;
(3) require a contractor to return any payments or deposits that the consumer made to the contractor except
for cost of providing emergency services if the consumer cancels the contract; (4) require contractors to
maintain certain insurance coverages; (5) establish contractor prohibitions, penalties, and licensing
requirements; and (6) allow certain exemptions. The proposed model was revised from a 2015 Spring Meeting
version and now would use registration fees to help fund enforcement of the Act, would streamline the
registration process for contractors who are registered in good standing in another state, and would add
enforcement provisions, among other changes.
TRANSPORTATION NETWORK COMPANIES (TNCs)/RIDESHARING
On July 18 and July 19, the Committee will consider a proposed Model Act to Regulate Insurance Requirements
for Transportation Network Companies and Transportation Network Drivers, sponsored by Rep. Michael
Stinziano (OH). The proposed model is similar to a new Indiana law that incorporates provisions found in an
Uber/property-casualty insurer “compromise” approach being circulated in the states. The draft NCOIL model
would require primary auto liability insurance purchased by the TNC driver and/or by the TNC to cover (1) the
period in which the TNC driver is logged into the TNC’s online system and is available to receive a
transportation request and (2) the period during which the TNC driver is transporting a rider. Under the
proposed NCOIL model, automobile insurers could exclude personal-lines coverage for losses that take place
during those periods. The draft model also would require certain disclosures to TNC drivers, would require a
TNC to have a permit from the state before it could operate there, would establish rules regarding who could
serve as a TNC driver, and among other things would specify that a TNC may meet its insurance requirements
by purchasing coverage through an insurer that’s highly rated by A.M. Best or Demotech.
WORKERS’ COMPENSATION INSURANCE COMMITTEE
NCOIL PROFESSIONAL EMPLOYER ORGANIZATION MODEL
On July 16, the Committee will discuss state PEO requirements as related to provisions in a 2007 NCOIL Model
Act Regarding Workers’ Compensation Insurance Coverage in Professional Employer Organization (PEO)
Relationships, to help determine the extent to which NCOIL-based requirements exist throughout the country.
Discussion will build on May 4 conference call of the Committee’s PEO Task Force, during which legislators and
interested parties identified three areas that may warrant additional Committee consideration: solvency, lines
of responsibility, and timing as related to how entering/leaving a PEO relationship may impact a PEO client’s
workers’ compensation coverage.
The PEO Task Force was created during the 2015 Spring Meeting in response to concerns over proposed
amendments to the NCOIL model. As adopted, the NCOIL model requires PEO registration and, among other
things, establishes that workers’ comp insurance premiums are determined using a PEO client’s risk exposure
and claims experience.
SPECIAL SESSIONS
ACA NETWORK ADEQUACY: WHAT’S NEXT FOR STATES?
On July 17, legislators will hear expert insight regarding network adequacy requirements, including how state
requirements differ; what can be done to balance costs, quality, and access; what information consumers need
and where should they receive it; and how network adequacy affects contracting between health plans and
providers/facilities. Panelists also will discuss how the federal government should factor in. The session will
include perspectives from American’s Health Insurance Plans (AHIP), the American Heart Association (AHA),
American Medical Association (AMA), and the Wisconsin Office of the Commissioner of Insurance, speaking on
behalf of the NAIC.
A QUESTION OF SUITABILITY: WHAT MAKES LIFE INSURANCE PRODUCTS WELL-MATCHED FOR A CONSUMER?
On July 18, legislators will explore what criteria should be used to determine suitability, how state regulation
has evolved, whether states are doing enough, and what steps life insurers are taking. The session also will
look at the impact of changing markets and new products. The interactive session will include perspectives
from the American Council of Life Insurers (ACLI), Center for Insurance Research (CIR), Financial Industry
Regulatory Authority (FINRA), Insurance Retirement Institute (IR), Iowa Insurance Division/NAIC, and the
National Association of Insurance & Financial Advisors (NAIFA).
Please contact the NCOIL National Office at 518-687-0178 or at info@ncoil.org with any questions regarding
30-day materials.
© National Conference of Insurance Legislators (NCOIL)
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