State Legislative and Regulatory Trends on Broader Life Insurance Issues
The Alliance is currently monitoring over 300 state bills that, while not “fraternal-specific,” may have an impact on the operations of member societies. These include:
- Unclaimed Life Insurance Benefits (8 bills) – Some of these measures clarify the application of existing statutes to fraternals, while others expand authority to conduct Death Master File searches to State Treasurers.
- Unfair Trade Practices/Unfair Discrimination (19 bills)
- Guaranty Fund (34 bills) – The majority of these measures are bills supported by ACLI to clarify responsibility for funding Long-Term Care insurer insolvencies by both life and health insurers.
- Cyber Security (35 bills) – While some of these measures attempt to address data privacy issues that would cover areas such as collection of personal data via websites and similar issues that regulators are concerned with, and others mirror the NAIC cyber security model, others, including a recent introduction in Illinois, expand provisions of the NAIC model which may result in significantly higher compliance costs for insurers, including fraternals. Read More about the Illinois Cyber Security Bill…
- NY DFS Cybersecurity Guidance Document – The NY DFS has posted an extensive guidance document that provides a chart that lists which sections of the newly enacted NY Cybersecurity Regulation need to be complied with, even if a covered entity is claiming an exemption. Since other states are considering cybersecurity regulation that closely mirrors the NY rule, we think Alliance members may find this document particularly useful to ensure compliance with any new regulations enacted in their state of domicile.
The Alliance will distribute Legislative and Regulatory Alerts to members on key issues – both fraternal-specific and broader topics that impact all insurers. However, members are also encouraged to monitor or subscribe to Bulletins and other publications from the state Departments of Insurance of your domiciliary state and all other states in which you are licensed. This is the most effective way for you to stay on top of public policy issues in the states where you operate and to comply with new rules and statutes as they are enacted.