Bulletin 2003-2: Reducing Regulatory Burden

OREGON INSURANCE DIVISION BULLETIN INS 2003-2 Date: March 10, 2003 To: All Insurers Re: Reducing Regulatory Burden The purpose of this bulletin is to reduce the regulatory burden imposed by the Oregon Insurance Division. In order to reduce the regulatory burden, the Insurance Division is withdrawing the following bulletins. To make the list easy to read, all bulletins that are withdrawn are set forth, even if they have been previously withdrawn. At the end of the listing of withdrawn bulletins is the list of bulletins that are still effective and not withdrawn. The Division’s website, “oregoninsurance.org,” will have a listing of all bulletins and indicate whether or not they have been withdrawn. Click on “Laws, Rules & Bulletins.” The following bulletins are withdrawn: 1 Agents of Surety and Casualty 2 Emergency Revenue Tax Law 3 Limited Accident Policies 4 Hail Insurance 5 German Companies 6 Increase Value and Coinsurance in Fire Policies 7 Rubber Stamp Signatures 8 Automobile Insurance 9 Annual Reports/ Convention Forms 10 No Commission May be Paid on Exchange of Business Between Oregon and Washington Agents 11 Automobile and Marine Agents 12 Errors in Daily Reports 13 No Copy – Not Issued on Account of Number 14 Confiscation Clause in Oregon 15 Rating Schedules and Policy Forms 16 Fire Marshal Tax 17 Confiscation Coverage 18 Responsibility of Fire Insurance Agents 19 Agents Writing Automobile Insurance 20 All Fire Insurance Agents 21 Notice to Fraternal Agents Department of Consumer and Business Services Insurance Division 350 Winter St. NE, Room 440 PO Box 14480 Salem, OR 97301-0405 (503) 947-7980 FAX (503) 378-4351 TTY (503) 947-7280 www.oregoninsurance.org Theodore R. Kulongoski, Governor

2 22 Insurance as Collateral for Loans Granted by World War Veterans State Aid Commission 23 Oregon Insurance Rating Bureau 24 Special Automobile Accident Policy 25 Confiscation Coverage Not Permitted 25 Defining Marine Insurance 26 Regarding Publication of Annual Statements 28 Conditional Sale Contracts “Master Policy” 29 Agents Licenses 30 Binder Without Cost 31 Mail Order Insurance 32 Bankruptcy Clause 33 Credits and Cancellation Notices 34 No Solicitation by Agents Before Licensed 35 Accident and Health Policies Non-cancellation 36 Cancellation Notice – Return Premium 37 Filing New Agent Qualification Report 38 Binders 39 Surplus Lines Agents 40 Publication of Annual Statements 41 Definition and Interpretation 42 Amending Nationwide Definition 43 Nationwide Marine Definition 44 Combining Coverages – Dwelling 45 Inland Marine 46 Withdrawn 47 Title Insurance Companies 48 Fire Insurance Companies 49 Surplus Line Agents 50 Accident and Health Insurance 51 Withdrawn 52 Withdrawn 53 Withdrawn 54 Auto Association Membership Card as Security for Bail 55 Mortality Tables 56 Life and Health Insurance Form Filing Procedure Changes 57 Misuse of Fire Protection Endorsement Prohibited 58 Use of OLUA Agent Manual to Study for Agent Exam 59 Insurers Should Send Entire Fire Policy to Loss Payee 60 Credit Life and Insurance Commissions 61 Offset for Collateral Benefits and Medial Payments under Uninsured Motorist Insurance 63 Credit Life and Health Insurance Report on Creditors 64 Property and Casualty Rates Required to be Filed Before Use 70-1 Billing Practices of University of Oregon Medical School 70-2 Insurer to Identify Contact Person 70-3 Insurer Appointment Renewal Procedure Changes 71-1 Health Insurance ads with Application. See OAR 836-20-285 71-2 Bulletin 71-1 Clarified 71-3 Unsigned Health Insurance Riders Prohibited 71-4 PIP Law Applies Prospectively

3 71-5 Compensation of Unlicensed Persons 72-1 Health Insurance May Not Discriminate Against Government Hospitals 72-2 Survey of Information Regarding Disability Insurance on Females 72-3 Use of Vague Certificates of Insurance Cautioned 72-4 Supercedes Bulletin 72-1 72-5 Title Insurers Must File Their Escrow Rates 72-6 Mortgage Insurance Filings with 10% Option to Be Withdrawn 72-7 Insurer to Identify Contact Person. Updates Bulletin 70-2 72-8 Property and Casualty Insurance May not Use Unfiled Rate Reductions to Groups 72-9 Health Insurance Ads Not to Be Placed Until New Rules Adopted 73-1 Health Insurance Must Include Summary for All Policies 73-2 Summary of 1973 Insurance-related Legislation 73-3 Car Pooling Is Not Use of an Auto for Hire in Auto Insurance 74-1 Insurers to Advise Insured of Availability of Flood Insurance 74-2 Health Insurance to Report Claim Experience for Medicare Supplement, etc. 74-3 Life and Health Insurance Form Filing Procedure Changes 74-4 Credit Life and Health Insurance Does Not Apply to Credit Transactions Over 10 Years 74-5 Insurers Must Post Security as Bail for Insured in Portland 74-6 Title Insurance May Not Give Comparable Sales Data 74-7 RVs, Vans and Campers Are Private Autos under PIP 75-1 Health Insurance Must Return Unearned Premium After Death 75-2 Annuity Guarantee of Excessive Interest Rates Prohibited 75-3 Insurer to Identify Contact Person. Update of Bulletin 72-7. 75-4 Financial Responsibility Law Limits Increased to 15/30 75-5 Survey of Property and Casualty Insurance Regarding "Participating" Policies 76-1 Notice of Oregon Life and Health Insurance Guaranty Association Organizational Meeting 76-2 Life and Health Insurers to File Rates Used and Certain Information with Forms 76-3 Auto Insurance Surcharge for Open Container Law Violation 76-4 Title Companies Warned Not to Provide Free Escrow Services 76-5 Group Health Insurance Must Cover Treatment for Alcoholism 77-1 Clerical Employees of Unlicensed Bank Exempt from Licensing Requirement 77-2 Auto Insurers to Tell Insured of Rights and Duties Regarding Claims 77-3 Agent Requested to Submit Information for Continuing Education 78-1 Title Companies Warned Not to Help Qualifying Subdivisions 78-2 Credit Cards May Be Used If . . . Bulletin 62 rescinded 78-3 Agent Must Pay All Credit Life and Health Insurance Premiums to Insurer 79-1 Title Companies Warned Not to Give Free Listing Packets 81-1 Title Companies Warned Not to Give Discounted Escrow Services 82-1 Title Companies Warned Not to Give Discounted Escrow Services 82-2 Workers’ Compensation Insurance to File Rate Plans Without Employer Assessments 82-3 Property and Casualty Insurers to File Rate Statistics to Justify Schedule Rating Plans 82-5 Guidelines for Reviewing Workers’ Compensation Insurance Rates and Forms 83-1 Bulletin 77-1 Rescinded 83-2 Auto Insurance Blanket Driver Exclusions Prohibited 83-3 Bulletin 82-5 Rescinded and Insurers to Use NCCI Standard Classes 83-4 Life and Health Insurance Form Filing Procedure Changes 85-1 Agents Warned Not to Misrepresent Who They Represent 85-2 Guidelines for Reviewing Annuity Rates and Forms 85-3 Property and Casualty Insurers Warned Not to Unreasonably Cancel Policy Mid-term

4 85-4 Health Insurers Warned to Distribute Medicare Supplement Insurance Information 85-5 Bulletin 85-2 Clarified 85-6 Agent Service Fees Generally Prohibited; Exceptions 85-7 Medical Malpractice Insurance Claims Are Confidential 85-9 Guidelines for Filing Medicare Supplement Insurance Fact Sheet 86-1 Agents Notified of New Insurance Consultant's License 86-4 Title Companies Warned Not to Give Discounted Escrow Service 86-5 Surety Insurers Not Required to File Power of Attorney with Insurance Division 86-6 Health Insurers to Use Approved Medicare Supplement Insurance Fact Sheet 86-7 Health Insurers Informed of COB Order of Benefit Determination 86-8 Mortgage Insurance on Second or Subsequent Mortgages Prohibited 87-1 Auto Insurer's Use of Driving Records Limited 87-2 Insurers to Report Medical Malpractice Claims to Licensing Board 87-4 Driver Convicted of DUII to File SR-22 with Higher Limits 87-5 Summary of 1987 Insurance-related Legislation 87-6 Bulletin 86-8 Rescinded 87-7 Health Insurance Warned to Pay Claims in 20 Working Days 87-8 Bulletin 85-2 and 85-5 Modified 87-9 Property and Casualty Insurance Must Report Loss and Expense Experience in State 88-1 Explains New Temporary Rules Relating to HIV 88-2 Insurers Must Offer Long Term Care Without Prior Hospital Care Requirements 88-3 Explains HB 2594 Regarding IPGB and Tax Credit to Small Employers Who Buy Insurance 88-4 Title Insurance and Agents Warned Not to Engage in Certain Conduct 88-5 Explains Group Health Insurance Chemical Depend and Mental Health Benefit 88-6 Explains Workers Compensation Premium Audit Program 89-2 Workers Compensation Insurance Requested to File Rate Filing Information 89-3 Summary of 1989 Insurance Related Legislation 89-4 Explains New Laws Regarding Sale of Life and Health Insurance by Trusts and Associations 89-5 Standard Fire Policy Must Give 30-day Cancel Notice for Nonpayment 90-1 Notifies Insurers of New Long Term Care Insurance Act 90-2 Credit Insurance May Underwrite If Ask One Question and Lower Rates 90-3 Health Insurance Notified of Amendments to Medicare Supplement. Rules 90-4 Insurers Notified to File Rates Based on Prospective Loss Costs 90-5 Insurers Must Give Discount When Person Finishes Safe Driver Course 90-7 Sample Notice of Oregon Medical Insurance Pool 90-8 Withdraws Bulletin 90-2 Limiting Credit Life and Health Compensation 91-1 Insurance Division Will Not Keep Copies of Most Filings After Approval 91-2 Explains Form Filing Required for Storage Tank Financial Assistance System 91-3 Health Insurance Notified of Law Requiring Adopted Child Be Covered 91-4 Explains New Credit Life and Health Insurance Rules 91-5 Insurers May Not Require Physicians, DEA Numbers on Uniform Claim Form 92-1 Explains SEHI Laws (SB 1076) 92-2 Insurers Requested to Answer Mandated Benefit Survey. Bulletin 90-6 92-4 All Classes of Insurance Form and Rate Filing Procedure Changes 93-1 Explains SEHI Laws (SB 1076) and Survey of SEHI Plans 93-2 New Sample Notice of Oregon Medical Insurance Pool 93-3 Approved Anti-direction of Work Notice with Auto Policy 93-4 Adoption of Certain NAIC Standards, Procedures and Publications 93-5 Explains Recent Changes in Medicare Supplement Insurance Laws

5 93-6 Summary of 1993 Insurance-related Legislation 93-7 Explains Recent Changes in SEHI Laws 94-3 Property and Casualty Insurance Must Use Correct Fire Protection Classification 94-6 Insurers May Offer Automatic Claim Filing (ACF) Services 95-1 Summary of 1995 Insurance-related Legislation 95-2 1996 Changes to Prima Facie Premium Rates for Credit Life and Credit Health 95-3 Guidelines for Filing General Group Major Medical and SEHI Policies 95-5 Explanation of Women's Health Benefits under ORS 743.728 96-6 Health Benefit Reform Enacted by 1995 Legislature (SB152) 96-7 Application of NAIC Manuals and Other Publications 97-1 Life and Health Insurance Advertising Procedures 97-2 Answers to Questions About Association Health Plans 97-3 Summary of Health Insurance Reforms in SB 98 (1997) 97-4 Summary of 1997 Insurance-related Legislation 97-5 Loss and Expense, Liquor Liability and Professional Negligence Claim Reports Not Required 98-2 Changes in ORS 731.036 Regarding Self-insured Health Plans of Local Governments 98-4 Application of NAIC Manuals and Other Publications 98-6 Annual Reporting of Grievances under SB 21 (1997) 99-2 Annual Reporting on Quality Assessment under SB 21 (1997) 99-3 Annual Reporting on Utilization Review under SB 21 (1997) 99-4 Annual Reporting on Scope of Work under SB 21 (1997) 99-6 Summary of 1999 Insurance-related Legislation 99-7 Notice About Recent Long Term Care Insurance Marketing Legislation 2000-1 Changes in Prima Facie Rates for Credit Life and Health Insurance 2000-3 Changes in Prima Facie Rates for Credit Life and Health Insurance 2000-4 Policy Provision Regarding Mortgage Interest 2001-3 Withdrawal of Bulletin 94-3 2001-5 2001 Oregon Legislation Affecting Insurance -- sunset 1/1/2003 2001-7 Withdrawal of Bulletins 98-6, 99-2, 99-3, 99-4 2001-8 Withdrawal of Bulletins 85-2 and 85-5 2002-5 Sale of Individual Health Benefit Plans in the Small Employer Market (issued 9/26/02) The following bulletins are still effective: 70-4 Reinsurance of Title Insurance 82-4 Schedule Rating Plans (Individual Risk Rating) 86-3 Filing and Use of Rates 90-6 Benefits for Chemical Dependency and Mental and Nervous Conditions; and Discrimination Among Providers 92-3 Marketing Practices for Paying Commissions 92-5 Rate Filing Procedures for Workers’ Compensation Insurance 94-1 Blanket Insurance 94-2 Title Insurance May Not Use Schedule B to Add Coverage 94-4 Creditor’s Rights Coverage 94-5 Marketing and Issuance of Individual Health Policies to Small Employer Groups Deferred Charitable Gift Annuities 96-2 Application of the Insurance Code to Health Benefit Arrangements that Include Provider Risk Sharing

6 96-3 Charitable Gift Annuities 96-4 Contents Corporate Minutes 96-5 Use of Corporate and Assumed Business Names by Insurers 97-6 Elimination of Premium Tax on Life Insurance and Annuities 98-1 Reductions of Refinance Escrow Rates to Induce Title Insurance Business 98-3 Filing Requirements for Health Insurance Policy Forms, per ORS 742.003;.Applicability of Negotiated Policy Exception 98-5 Use of a Fraud Warning 99-5 Addendum to Bulletin INS 97-6 – Life Insurance and Annuity Provisions Relating to Payment of Taxes 2000-2 Advertisement Filing Procedures 2001-1 OAR 836-080-0240 – Standards for Prompt & Fair Settlement – Automobile Insurance 2001-2 Application of NAIC Manuals and Other Publications 2001-4 Voluntary Expedited Filing Procedures for Insurance Applications Developed to Allow Depository Institutions to Meet Their Disclosure Obligations under Section 305 of the Gramm-Leach-Bliley Act 2001-6 Standard Limits of Liability for Oregon Workers’ Compensation Policies 2001-10 Voluntary Expedited Filing Procedures for Exclusions Related to Acts of Terrorism 2002-1 No Policy Changes Required by 2001 Amendment to ORS 743.186(1)(A) 2002-2 General Filing Instructions for Filing Policy Forms and Rates 2002-3 USA Patriot Act of 2001 2002-4 General Filing instructions for filing policy forms & rates 2002-5 Sale of individual health benefit plans in the small employer market (Revised 2/20/03) 2002-6 Filing Procedures for Exclusions Related to Acts of Terrorism. 2002-7 Voluntary Expedited Filing Procedures for Compliance with the Provisions of the Terrorism Risk Insurance Act of 2002. 2003-1 Annual Reporting Procedures for Patient Protection Act (PPA) also known as Senate Bill 21 (SB21) Signed this 10th day of March 2003. _(Signed) Joel S. Ario, Insurance Administrator