2016-2017 DOI Rulemaking Activity
2015-2016 DOI Rulemaking Activity
The following describes rulemaking activity for submission before the Legislative Session 2017.
Rules Pertaining to Producers Handling of Fiduciary Funds - Docket Number 18.01.10
The existing rule is proposed to be amended concerning bail to provide deposit rules for cash collateral similar to
that of other funds that insurance producers receive from clients, namely, to treat cash collateral as fiduciary funds.
Restrictions on Discretionary Clauses in Health Insurance Contracts - Docket Number 18.01.29
The Department of Insurance has withdrawn rulemaking Docket No. 18-0129-1601.
Rule to Implement the Privacy of Consumer Financial Information - Docket Number 18.01.48
This temporary and proposed rule will confer a benefit upon insurers and producers (licensees of the DOI) by providing language
relieving them from having to send their customers an annual privacy notice where they comply with other requirements concerning
any disclosure of personally identifiable financial information and only in situations where the licensee's practices and policies
regarding disclosure have not changed since the last notice sent to their customer. The temporary and proposed rule will also
confer a benefit upon consumers relieving them from receiving duplicative annual notices, such that only new or changed notices
will be received.
Adoption of the International Fire Code - Docket Number 18.01.50
The existing rule is proposed to be amended to adopt the 2015 International Fire Code to match the
anticipated adoption of the 2015 International Building Code by the Division of Building Safety.
Rule to Implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act - Docket Number 18.01.54
- The existing rule is proposed to be amended to require all Medicare Supplement (aka Medigap) carriers to offer coverage to pre-65 Medicare eligible individuals; clarify the requirement to account for interest in projections; require experience and rate increases to be pooled among all plans offered by a company; and clarify rating/underwriting factors that can be used and when (e.g. smoking and pre-65).
- Twenty-five states now require insurance companies to sell Medigap to all ages enrolled in Part B. Under age 65 Medicare beneficiaries have limited options for payment of Medicare deductible and co-payments. We seek to expand Medicare beneficiaries’ options.
- The NAIC Medicare Supplement Guidance Manual states: “Interest must be considered in calculating the anticipated lifetime and future loss ratios, otherwise loss ratios will be overstated.” Yet, carriers have not included interest because our rule does not state it is required.
- In reviewing rate increases, the department has requested that rate increases be applied equally to all of a carrier’s plans, rather than varying the increases based on the more variable experience of specific plans. This keeps the premiums more representative of the benefit differences, rather than reflecting the morbidity of the enrollees of specific plans. The proposed changes will require that approach for future rate increases.
- Current rule disallows gender and geographic area as rating factors, but other factors are not clearly allowed/disallowed during open enrollment or outside of open enrollment, other than disallowing broad terms of “health status, claims experience, receipt of health care, or medical condition.”
Rebates and Illegal Inducements to Obtaining Title Insurance Business Rules - Docket Number 18.01.56
This existing rule concerns rebates and illegal inducements in title insurance and provides limits on what items of value may be
provided to producers of title business. Changes in technology have increased efficiencies of operations for title agents such that
items of value can be produced much more quickly, easily, and therefore inexpensively. Additionally, some of the limitations in the
rule have not been changed in many years. The negotiated rulemaking anticipates the following changes:
- Subsection 010.05 (Social Media) – define social media.
- Subsection 012.02 (Listing Packages) – permit photos to be included in allowed materials if no additional
charge is required; paper delivery would have commensurate charge.
- Subsection 012.03 (Additional Information That May Be Provided) – permit last deed of record.
- Subsection 013.01 (Advertisement) – eliminate the quarterly publication requirement; amend to permit
advertising in annual trade association publications.
- Subsection 014.01 (Self-Promotional Items) – increase amount spent on self-promotion items from $10 to
$25/item and from $50 to $200/year in cumulative value.
- Subsection 014.02 (Social Media) – implement new section that clarifies the use of social media.
- Subsection 014.03 (Educational Programs) – increase the expenditure from $10 to $20 per person. Also
change “solely regarding title and escrow.” The intent is to expand the programs which may be offered
while maintaining the integrity of the topics as being “related” to title and escrow.
- Section 017 (Escrow Closing Charges and Premium Rates) – remove the reference to Section 41-2706,
Idaho Code, which is improper following a legislative change in 2011.
The complete text of the proposed rule was published in the October 5, 2016 Idaho Administrative Bulletin. The following changes
are how the pending rule differs from the proposed rule:
- Subsection 010.05 defining social media is being removed.
- Subsection 014.02 clarifying the use of social media is being removed.
The agency is making these changes because there was not consensus. The existing rule provides some guidance on advertising. It
is understood that if future issues arise related to any co-branding or co-advertising between title entities and producers of
title business or trade associations, the agency may elect to conduct future rulemaking.
2014-2015 DOI Rulemaking Activity
The following describes rulemaking activity for submission before the Legislative Session 2016, and published
in the Idaho Administrative Bulletin Volume 15-7, July 1, 2015.
Rules Pertaining to Self-Funded Employee Health Care Plans
This rulemaking seeks to amend Rule 27 to conform to code changes made during 2013, provide additional clarity,
and remove some duplicative language unnecessary to the rule that reiterates the code.
18.01.27 – Notice Of RuleMaking - Adoption of Pending Rule.
Rules Pertaining to Schedule of Fees, Licenses and Miscellaneous Charges
This rulemaking seeks to amend IDAPA 18.01.44.030 to add a licensing/renewal fee for public adjusters of $80
(eighty dollars); seeks to amend 18.01.44.020.03 to clarify that registration of self-funded student health
plans is subject to the licensing/renewal $500 (five-hundred dollars) fee just like self-funded employer plans,
and may seek to amend the 18.01.04.030.02 regarding the $60 (sixty dollars) fee an applicant for a producer or
adjuster license pays to take an examination.18.01.44
18.01.44 – Notice Of RuleMaking - Adoption of Pending Fee Rule.
Rules Pertaining to Long-Term Care Insurance Minimum Standards
The long-term care rule (IDAPA 18.01.60.017) currently references inflation protection but does not clearly
establish a minimum amount applicable to long-term care partnership policies. Qualifying long-term care
partnership policies allow consumers who buy them to qualify for Medicaid asset disregard. For long-term care
partnership policies, the Department has applied a minimum 5% annual inflation protection, or alternatively,
benefit guarantees of not less than the annual change in the Consumer Price Index by Bulletin 06-07. The
department expects to pursue rulemaking to modify minimum inflation protection applicable to long term care
partnership policies, which should promote more purchases of them. The rulemaking may also impact inflation
protection for non-partnership policies.
18.01.60 – Notice Of RuleMaking - Adoption of Pending Rule.
2013-2014 DOI Rulemaking Activity
The following describes rulemaking activity effective April 11, 2015 (adjournment of the legislature) unless otherwise noted.
Rules Pertaining to Recognition of New Annuity Mortality Tables for Use in Determining Reserve Liabilities for Annuities and Pure Endowment Contracts.
This rulemaking amends Rule 46 to adopt NAIC 2012 individual annuity reserve table (2012 IAR) per NAIC model 821 for annuities issued January 1, 2015, and later.
18.01.46 – Notice of Rulemaking – Adoption of Pending Rule and Adoption of Temporary Rule
18.01.46 – Text of Final Rule.
Rules Pertaining to Continuing Education
This rulemaking requires resident adjusters and those adjusters with Idaho as the home state as well as resident/home state public adjusters to meet continuing education requirements, and that the specifics of Rule 53, such as the approval of courses by the CE Committee, will apply.
18.01.53 – Notice of Rulemaking – Adoption of Pending Rule
18.01.53 – Text of Final Rule.
Rules Pertaining to Change in the Schedule of Fees, Licenses and Miscellaneous Charges
This rulemaking sought to:
- provide clarity concerning the required fee for self-funded student health plans that register with the Department;
- make a technical correction to delete surplus language;
- provide for the same licensure fee for public adjusters as exists for adjusters, namely, $80; and
- change the fee for examinations for producer and adjuster license applicants from a flat $60 to an amount not to exceed $80.
2012-2013 DOI Rulemaking Activity
The following describes rulemaking activity effective March 30, 2014 (adjournment of the legislature).
Rules Pertaining To Bail Agents
This rulemaking deletes sections 18.01.04.016.02 and 18.01.04.016.3 from
Rule 18.01.04 to conform the rule to the interpretation of Idaho Code 41-1042 consistent with the
Idaho Supreme Court’s ruling in Two Jinn v. Idaho Department of Insurance, 154 Idaho 1, 293 P.3d
18.01.04 – Notice of Pending Rule.
18.01.04 – Text of Final Rule.
Rules Pertaining to the Idaho Insurance Holding Company System Regulatory Act
This rulemaking updates the existing
rule consistent with changes made to title 41, chapter 38, Idaho Code during the 2013 legislative
session in House Bill 197 affecting insurance holding company systems. Changes include, but are
not limited to, setting forth the elements of the new filing requirements for a new Form F –
Enterprise Risk Report.
18.01.23 – Notice of Pending Rule.
18.01.23 – Text of Final Rule.
Adoption of The International Fire Code
To revise language in IDAPA 18.01.50 to adopt the 2012 edition of the
International Fire Code. This adoption includes revisions made to previous editions of the
International Fire Code. This rule brings the adopted edition of the International Fire Code
current with the edition of the Building Code adopted by the Legislature in 2013.
18.01.50 – Notice of Pending Rule
18.01.50 – Text of Final Rule
The following Department of Insurance rules became final and effective upon
adjournment of the legislature, April 4, 2013:
18.01.09 – Suitability in Annuity Transactions. Prior rule was repealed, and new
rule added based on 2010 NAIC Model Rule; requires the producer or insurer to
have reasonable grounds to believe an annuity is suitable based on specific
information of the consumer prior to making a recommendation to the consumer;
also requires producers engaged in the sale of annuity products to complete a
one-time, four-credit training course.
18.01.19 – Insurance Rates and Credit Rating. Clarifies when and how an
insurer’s use of consumer credit information will be deemed to be improper and
in violation of Idaho Code, and permits insurers to use a neutral credit factor
or score against which to measure compliance with Idaho Code, both at initial
rating and upon renewal.
18.01.44 – Schedule of Fees, Licenses and Miscellaneous Charges. At original
license application, a vendor of portable electronics insurance engaged in
portable electronics transactions at more than ten locations in Idaho, the fee
is $1000. For a vendor engaged in portable electronics transactions at ten or
fewer locations, the fee is $100. At renewal, a vendor of portable electronics
insurance engaged in portable electronics transactions at more than ten
locations, the renewal fee is $500. A vendor engaged in portable electronics
transactions at ten or few locations pays a renewal fee of $100. Fingerprint
processing fees are increased up to, but may not exceed, $80.
18.01.56 – Rebates and Illegal Inducements to Obtaining Title Insurance
Business. Language added to permit title agents to provide attorneys and
appraisers plat maps and copies of CCRs without charge.