(Saint Paul, MN – Insurance News 360) – Health insurance companies are proposing mostly decreased premium rates for 2019 in Minnesota’s individual health insurance market. The average proposed rates show decreases that range from 3-12 percent and higher. Health insurers submitted proposed rates for all 87 counties.

Insurers submitted proposed 2019 rates to the Minnesota Commerce Department on June 1.  These preliminary rates will be reviewed by the Department and final, approved 2019 rates will be announced by October 2, 2018.

The proposed rates include the Minnesota Premium Security Plan, a state-based reinsurance program enacted in 2017 and in effect for 2019. For an insurer, reinsurance offsets 80 percent of an individual’s total annual medical claims costs between $50,000 and $250,000. State law authorizes up to $542 million in 2018-2019 for the reinsurance program.

Proposed rates for 2019 are available on the Minnesota Commerce Department’s website (mn.gov/commerce).

Public comments accepted until August 15

Members of the public are invited to comment on insurers’ preliminary proposed rates for 2019 as the Commerce Department conducts its review.

Submit comments through Aug. 15 via email to  healthinsurance.ratecomments@state.mn.us.

Open enrollment begins on Nov. 1 and runs through Dec. 15, 2018.

Four percent of Minnesotans buy health insurance in the individual market; 5 percent through small group market

Individual health plans provide coverage for Minnesotans who purchase their own insurance instead of from an employer or public program. About four percent of Minnesotans  are covered through the individual health insurance market – with most buying coverage through MNsure.

Small group health plans cover businesses and organizations with 2 -50 full-time employees. About five percent of Minnesotans currently get their coverage through the small group health insurance market.

The Commerce Department will review each proposed rate filing, and the Minnesota Department of Health will review provider networks to ensure they meet state and federal adequacy requirements.

That rate review must show justification by the benefits for consumers, and the insurance company’s ability to pay medical claims costs based on premium revenue.

Insurers must also comply with state and federal laws that protect consumers, including coverage for pre-existing conditions, free preventive care, adequacy of the provider network and the procedures an individual must follow to enroll or have a claim paid.

Source: Minnesota Department of Commerce.

(Denver, CO – Insurance News 360) – On June 11, Colorado announced that the actions of the federal  government would not affect Colorado residents who have pre-existing health conditions.

 “Guaranteed health insurance coverage for people with pre-existing conditions is enshrined in Colorado law,” said Interim Insurance Commissioner Michael Conway. “Regardless of how the Justice Department or the Trump administration attempt to change the Affordable Care Act, the Division of Insurance will continue to enforce Colorado law and maintain this important protection for our citizens.”

This announcement comes in response to the U.S. Justice Department and Trump Administration’s notice that it would not defend parts of the ACA from a lawsuit from 20 Republican State Attorneys General.

 “A single risk pool is also part of Colorado law. Gone are the days of being charged more because you have high blood pressure or because your child has asthma. While the ACA led the way on prohibiting insurers from such practices, Coloradans can rest assured that they will remain protected from any political gamesmanship at the federal level because of the foresight of our State legislators and Governor Hickenlooper,” said Commissioner Conway.

“Providing access to health insurance to people with pre-existing conditions and not charging them more simply because they’ve been sick are two of the fundamental improvements of the ACA,” continued Commissioner Conway. “That’s why the Division will continue to make sure that plans offered in Colorado conform to Colorado law. We won’t be turning back the clock.”

Source: Colorado Department of Insurance.

(Denver, CO – Insurance News 360) – On June 11, Colorado announced that the actions of the federal  government would not affect Colorado residents who have pre-existing health conditions.

 “Guaranteed health insurance coverage for people with pre-existing conditions is enshrined in Colorado law,” said Interim Insurance Commissioner Michael Conway. “Regardless of how the Justice Department or the Trump administration attempt to change the Affordable Care Act, the Division of Insurance will continue to enforce Colorado law and maintain this important protection for our citizens.”

This announcement comes in response to the U.S. Justice Department and Trump Administration’s notice that it would not defend parts of the ACA from a lawsuit from 20 Republican State Attorneys General. 

 “A single risk pool is also part of Colorado law. Gone are the days of being charged more because you have high blood pressure or because your child has asthma. While the ACA led the way on prohibiting insurers from such practices, Coloradans can rest assured that they will remain protected from any political gamesmanship at the federal level because of the foresight of our State legislators and Governor Hickenlooper,” said Commissioner Conway. 

“Providing access to health insurance to people with pre-existing conditions and not charging them more simply because they’ve been sick are two of the fundamental improvements of the ACA,” continued Commissioner Conway. “That’s why the Division will continue to make sure that plans offered in Colorado conform to Colorado law. We won’t be turning back the clock.”

Source: Colorado Department of Insurance.

(Sacramento, CA – Insurance News 360) – Insurance Commissioner Dave Jones has served Accordia Life and Annuity Company and Athene Annuity and Life Company with an Order to Show Causation and Accusation after the companies failed to provide service  and benefits to more than 50,000 California consumers

After more than 100 complaints from customers who were not provided with statutorily-mandated annual reports or billing statements, which made them unable to pay premiums or access any policy benefits, the  California Insurance Department sought an order to suspend the companies’ certificates of authority for one year, as well as to cease and desist from practices harming California consumers.

“My first priority as Insurance Commissioner is protecting consumers and the integrity of the insurance marketplace,” said Commissioner Jones. “Consumers should have confidence that companies selling insurance in California are delivering on their promises and are doing so in compliance with our consumer protection laws.”

Five years ago, Accordia Life and Annuity acquired a $10 billion book of life insurance business with more than 50, 000 Californians’ policies. The deal reuired that affected consumers could have their policies transferred or remain with Athene. Those who did not consent to the transfer stayed with Athene, but their policies are administered by Accoria. Since then, Accordia has repeatedly harmed consumers who have not received their annual reports or billing statements, which kept them from paying premiums or getting their policy benefits.

Those issues caused the department to take appropriate legal action to protect consumers.

Source: California Department of Insurance.

(London, UK – Insurance News 360) – After extensive discussions with members of the Lloyd’s market, the Lloyd’s Market Association (LMA), the London & International Insurance Brokers’ Association (LIIBA) and the International Underwriting Association (IUA), Lloyd’s Corpoation will require syndicates to write at least 10 percent of risks electronically. By the fourth quarter, the requirement will be 30 percent, with other targets to come before the end of the fourth quarter.

This mandate is encouraged to speed the transformation from paper to digital. For managing agents who meet target requirements, members of the syndicate will be eligible for a rebate on their annual subscriptions.  For those who don’t meet the target, additional fees will be required.

Lloyd’s Chief Executive Officer, Inga Beale, said: “We must ensure that Lloyd’s and the London market moves together and continues to prioritise its modernisation efforts. We have agreed the scope and requirements for the electronic placement mandate. Those that adopt electronic placement in line with the mandate will receive incentives, in recognition of their increased efficiency,” said Lloyd’s Chief Executive Officer Inga Beale. “Those that fall short will be required to contribute towards the costs of modernising the market. We have a system that works and that supports face-to-face negotiations. Adoption by the market will increase efficiency, reduce back office costs, and most importantly improve customer service.”

The electronic placing platform provided by PPL was launched in July 2016, initially for standalone Terrorism business. Today, 36 lines of business are available on the platform, with 29 brokers and 93 carriers signed up. Accident & Health goes live in April and the PPL Board is working with the market on agreeing suitable live dates for the remaining classes of business including Reinsurance and Aviation.

Source: Lloyds.

(Carson City, NV – Insurance News 360) – On July 1, 2018, a new law will go into effect that requires all consumers to purchase automotive insurance premiums that increase the minimum protection levels to $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage (“25/50/20”).

“While this new law isn’t going into effect until July, the Division has already received and approved filings from insurance companies with the new minimum vehicle liability limits,” explained Insurance Commissioner Barbara Richardson. “This means some companies may have already begun to implement this new requirement for their policyholders when they renew their policies or when they write new business.”

For consumers interested in learning more about this new requirement, the Division has posted important information and Frequently Asked Questions on its website at: http://doi.nv.gov/Consumers/Automobile_Insurance/Higher_Minimum_Vehicle_Liability_Requirements/.  Consumers are also encouraged to check in with their insurance agent or company to determine how this new law will affect their policy personally.

Source: Nevada Division of Insurance.

(Washington, DC – Insurance News 360) – In testimony before the U.S. House Ways and Means  Subcommittee on Tax Policy in March, a representative of the National Association of Realtors urged  that mortgage forgiveness tax relief should be made permanent. This is an exclusion for  forgiven home mortgage debt following a foreclosure, short sale or loan modification should be made permanent to provide relief to troubled borrowers and minimize the damage to families, neighborhoods and communities.

“The exclusion for mortgage debt cancellation delivers a huge dose of fairness. When the investment in a home goes well, and the owner sells at a gain, the tax code generously waives capital gains up to $500,000,” said Realtor® Barry Grooms, 2018 vice president of Florida Realtors®, who testified on NAR’s behalf. “But what happens when things go sour, equity is lost and the family is forced to sell short? Up through last year, the exclusion stepped in and relieved the often-impossible tax burden. If allowed to expire, we are left with a tax policy that rewards good fortune but piles on when the tables are turned. This is neither fair nor smart.”

While the home equity situation in America is much better today and the volume of short sales and foreclosures has receded from record highs, there are still about 2.5 million homes underwater, according to industry data. This is down considerably from the downturn, when as many as a quarter of mortgaged homes in the U.S. had negative equity. Nonetheless, there are still a significant number of individuals struggling to keep up with their mortgage payments, and the exclusion is vital for lessening the financial impacts of a foreclosure, short sale or loan restructure and saving distressed families from a dire hardship.

In his testimony, Grooms urged Congress to make mortgage cancellation relief a permanent provision since the exclusion has already expired, leaving the future of troubled borrowers in serious doubt.

“Cases of negative home equity will ebb and flow as well, even with a stronger economy,” said Grooms. “This is why we need a permanent exclusion to minimize the damage to families, neighborhoods and communities.”

Additional information on NAR’s mortgage debt cancellation tax relief efforts is available at www.nar.realtor/topics/mortgage-debt-cancellation-relief .

Source: National Association of Realtors.

(Washington, DC – Insurance 360) – Although inventory constraints and costs kept potential millennial-aged home buyers from  leaving their parents’ homes, that age group accounted for about 36 percent of home purchases in 2017, according to the National Association of Realtors’ 2018 Home Buyer and Seller Generational Trends Study. The study revealed that proximity to friends and family are more important to millennial buyers than location and closeness to a school.

Buyers in Generation X accounted for 26 percent of home buyers over the past year. Older baby boomers accounted for 14 percent of home sales, and the salient generation purchased just six percent of homes.

This year’s findings reveal how low inventory conditions affect prices and what it takes to be successful as a millennial home buyer.

“Realtors® throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy,” said Lawrence Yun, NAR’s chief economist. “Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy.”

The 144 page survey revealed that younger baby boomers  were most common buyers of a multigenerational home,  because their adult children lived at home, as did their parents.

“Costly rents and growing student debt balances appear to make living at home more appealing, affordable and increasingly more common among young adults just entering the workforce,” said Yun. “Even in situations where three generations are all cramped under the same roof, it can significantly help some millennials eventually transition straight to homeownership. Eighteen percent of millennial buyers in the survey said their family home was their previous living arrangement.”

Source: National Association of Realtors.

(Washington, DC – Insurance News 360) – Low inventory and fast price growth did not hamper existing home sales in February, according to the National Association of Realtors (NAR). Instead, existing home sales increased three percent to 5.54 million (a seasonally adjusted annual rate), up from 5.38 million in January. This brings sales up 1.1 percent over March 2017.

“A big jump in existing sales in the South and West last month helped the housing market recover from a two-month sales slump,” said NAR Chief Economist Lawrence Yun. “The very healthy U.S. economy and labor market are creating a sizeable interest in buying a home in early 2018. However, even as seasonal inventory gains helped boost sales last month, home prices – especially in the West – shot up considerably. Affordability continues to be a pressing issue because new and existing housing supply is still severely subpar.”

In all housing types, the median price for existing homes was $241,700, which is up almost six percent from February 2017.  Housing inventory was up 4.6 percent, but at 1.59 million, is still lower than where it was a year ago, and has seen a year-over-year decrease for nearly three years.

“Mortgage rates are at their highest level in nearly four years, at a time when home prices are still climbing at double the pace of wage growth,” said Yun. “Homes for sale are going under contract a week faster than a year ago, which is quite remarkable given weakening affordability conditions and extremely tight supply. To fully satisfy demand, most markets right now need a substantial increase in new listings.”

The hottest metropolitan areas for home sales in February include San Francisco-Oakland-Hayward, Calif.; Midland, Texas; Vallejo-Fairfield, Calif.; San Jose-Sunnyvale-Santa Clara, Calif.; and Sacramento-Roseville-Arden-Arcade, Calif. More than a quarter of home buyers were first-time buyers in February.

NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty, says first-time buyers are seeing stiff competition for the available listings in their price range. “Realtors® in several markets note that entry-level homes for first-timers are hard to come by, which is contributing to their underperforming share of overall sales to start the year.” she said. “Prospective buyers should start conversations with a Realtor® now on what they want in a new home. Even with the expected uptick in new listings in coming months, buyers in most markets will likely have to act fast on any available listing that checks all their boxes.”

Source: National Association of Realtors.

(New York, NY – Insurance News 360) – To comply with New York’s regulation that prohibits use of occupational status and educational level in considering an individual’s automobile insurance rates, three of the larger automobile insurance companies in the state have pledged not to use those factors. Geico, Allstate, and Liberty Mutual provide almost half of the private automobile insurance in the state  of New York.

“The use of education and occupation in determining insurance rates unfairly penalizes drivers without college degrees or who work in low-wage jobs or industries without having a rational relationship to driving,” said Superintendent Maria Vullo. “The result is that drivers with higher education and income pay less for auto insurance with no rationale evidence that they are better drivers.  We are pleased that GEICO has recognized its responsibilities to immediately comply with this regulation and we expect any other company that may be utilizing education and occupation in their underwriting to immediately agree to comply before the effective date of the regulation.”

During a multiple-year investigation, the state revealed that many insurers in the stae have, at one point, used education level and occupational status to determine what their insurance rates would be, without clearly showing how these factors were related to their driving. This skewed many  insured individuals’ rates from the start, whether there was truly more risk or not.

Under the DFS regulation, which was finalized in December 2017 and made effective this month, private passenger auto insurers are prohibited from using drivers’ occupational status or education level as a factor in initial tier placement unless the insurer demonstrates, to the satisfaction of the Superintendent of Financial Services, that its use of occupational status or educational level attained in initial tier placement or tier movement does not result in rates that are excessive, inadequate, or unfairly discriminatory.

Source: New York State Department of Financial Services.

(New York, NY – Insurance News 360) – New York Financial Services Superintendent Maria T. Vullo announced punishment of QBE Insurance Corp., for issuing accident-only coverage to colleges and universities in New York. As of March 15, the company had ceased selling these policies, which did not comply with the Affordable Care Act or New York law.

“DFS will continue to vigorously enforce the insurance law and take action to protect all New Yorkers, including students attending college and other institutions of higher education, to ensure that they are receiving the insurance coverage they deserve in compliance with federal and state law,” said Superintendent Vullo.  “DFS appreciates QBE’s cooperation in resolving this matter and taking remedial steps to correct these violations of law.”

The DFS investigation found that QBE unlawfully sold the accident-only coverage for the 2016-17 school year to 25 institutions of higher education, covering 99,937 students.  The insurer also failed to issue certificates setting forth the essential features of the insurance coverage to each of the 99,937 students covered by the policies.

QBE is headquartered in Pennsylvania and licensed as a property and casualty insurance company in New York.

Source: New York State Department of Financial Services.