State Legislative/ Regulatory News

Self-Insurance Institute of America, Inc.

Exclusive Reporting for the Week of June 26, 2014

June 26, 2014 — This is your weekly update of state legislative/regulatory developments affecting companies involved in the self-insurance/alternative risk transfer marketplace. Should you have any questions on information provided in these reports and/or would like to alert SIIA to new state legislative/regulatory activity (health care, workers’ compensation and/or captive insurance matters) we may have missed, please contact Adam Brackemyre, Director of State Government Relations directly at 202/463-8161, or via e-mail at

New York – Stop Loss Legislation and Legislative Briefing
We made significant progress with S.6917/A.9980, legislation that would fix New York’s “small employer” stop-loss problem, but only the Senate passed its legislation before the legislature left Albany.

Last Thursday, the Senate passed S.6917 unanimously. However, the Assembly did not pass A.9980 from the Insurance Committee and was not eligible for a vote by the full Assembly. While it is theoretically possible that the legislature returns for a special session or lame duck session and considers legislation that has passed at least one chamber, we will probably have to reintroduce legislation in 2015.

High-level Assembly sources tell SIIA that key members of the Assembly did not hear from enough support for the legislation from their constituents and that the Department of Financial Services wanted to study the legislation, effectively stopping it from leaving the Insurance Committee, which was meeting daily in the final days of session. Assembly staff also did not see the issue as urgent, noting that the stop-loss ban extension is not effective until January 1st 2016 and thought the legislation could wait until early 2015 without anyone being harmed.

In order to advance the legislation in the Assembly, SIIA and allies will have to facilitate increased constituent outreach to legislators and meet with the Department of Financial Services and the governor’s staff to address any policy concerns that staff may have. SIIA member support will be critical for the achieving the former.

Given the extreme importance of the issue and related developments, SIIA will be holding a special briefing intended to update stakeholders on what occurred in this year’s legislative session, and more importantly what we need to do to get the legislation passed.

Date: Wednesday, July 16, 2014
Time: 11:30 a.m. to 2:30 p.m. (Luncheon Followed by Presentation)
Location: The Terrace Club
25 West 51st Street
New York, NY 10019

Thanks to the generosity of the following event sponsors, there is no charge to attend this event but advance registration is required due to space limitation. Please RSVP to SIIA State Government Relations Director Adam Brackemyre at, or by phone – 202/595-0641.

Event Sponsors
Guardian Life Insurance Company
Meritain Health
Relph Benefit Advisors
HCC Life Insurance Company
Pareto Captive Services, LLC
IHC Risk Solutions
Gerber Life Insurance
Sun Life Financial

NAIC- Stop-Loss White Paper
The NAIC is edging closer to releasing a draft of its stop-loss white paper.

An NAIC source told SIIA that regulators have drafted their sections of the white paper draft and NAIC staff and regulators are now combining the separate documents into one. The NAIC is being very deliberate with the final editing process and wants the paper to be informative and non-controversial.

At this time, there is no scheduled release date. In earlier discussion with NAIC sources, the paper was to be released in early summer and approved by the summer NAIC meeting in mid-August. However, this timetable appears to be slipping. At this point, the paper will probably not be approved at the Summer NAIC meeting and, if the paper is released before the meeting, there will be one call with NAIC staff to review the content and make substantive comments and either one or two additional calls after the Summer NAIC meeting.

SIIA will be in attendance at the next NAIC meeting and distribute the white paper as soon as it is released for public comment.

Connecticut- Stop-Loss Update
A high-level insurance department source has informed SIIA that the department will not be revisiting stop-loss regulation.

Earlier this year, friends of the Connecticut exchange inserted a provision in legislation increasing minimum individual and aggregate attachment point. Ultimately, the Connecticut Department of Insurance issued a bulletin implementing the NAIC Model Act standards.

At the time, there was concern that the exchange would continue to push for higher minimum individual and aggregate attachment points, but this is not happening. At the most recent exchange board meeting, the board discussed recent carrier rate filings. Stop-loss and self-insuring was not on the agenda, nor was it discussed.

SIIA will continue to work with a coalition of employer and insurance interests in the event that.

SIIA’s 34th Annual Conference
SIIA’s National Conference and Expo is scheduled for October 5-7, 2014 in Phoenix, AZ, which will feature a dedicated Legislative/Regulatory/Legal update session. Conference details, including registration forms, can be accessed on-line at, or by calling 800/851-7789.