HB 2233 — Health benefits; sale of plans offered by foreign health insurers.

SESSION history | hilite | pdf | print version 17102986D17104837D HOUSE BILL NO.

2233 OfferedAMENDMENT JanuaryIN 11,THE 2017NATURE PrefiledOF A SUBSTITUTE (Proposed by the House Committee on Commerce and Labor on January 11,26, 20172017) (Patron Prior to Substitute--Delegate Cline) A BILL to amend and reenact § 38.2-1802 of the Code of Virginia and to amend the Code of Virginia by adding in Title 38.2 a chapter numbered 64, consisting of sections numbered 38.2-6400 through 38.2-6407, relating to sales of health benefit plans from persons licensed to sell such plans in other states.

---------- Patrons-- Cline, Freitas, Garrett, Webert and Wilt ---------- Referred to Committee on Commerce and Labor ---------- Be it enacted by the General Assembly of Virginia:

Vessels Contracts of insurance on vessels or craft, their cargo, freight, marine builder's risk, maritime protection and indemnity, ship repairer's legal liability, tower's liability or other risks commonly insured under ocean marine insurance policies as distinguished from inland marine insurance policies, provided that a property and casualty or limited lines property and casualty agent licensed in this Commonwealth sells, solicits, or negotiates these classes of insurance on behalf of any insurer not licensed to transact the business of insurance in this Commonwealth;

Health benefit plans on behalf of ana foreign insurer that is licensed to sell, offer, or provide health benefit plans in any other state, if such foreign insurer is authorized to sell, offer, or provide the health benefit plans in the Commonwealth pursuant to Chapter 64 (§ 38.2-6400 et seq.).

"Foreign health insurer" means an insurer domiciled and licensed to sell, offer, or provide health benefit plans in any other state.

"Health benefit plan" means an arrangement for the delivery of health care, on an individual or group basis, in which aan healthinsurer carrier undertakes to provide, arrange for, pay for, or reimburse any of the costs of health care services for a covered person that is offered in accordance with the laws of any state.

"Insurer" means any entity that is authorized to sell, offer, or provide a health benefit plan, including an entity providing a plan of health insurance, health benefit or health care services, an accident and sickness insurance company, a health maintenance organization, a corporation offering a health benefit plan, a fraternal benefit society, or other entity that provides health benefit plans subject to state insurance regulation.

Offers the same health benefit plan that has been approved for use in its domiciliary state and provides documentation that it is in compliance with all applicable laws, regulations, and other requirements of its domiciliary state;

Except as provided in this chapter, a health benefit plan sold, offered, or provided by a foreign health insurer in the Commonwealth in accordance with the provisions of this chapter shall not be subject to laws applicable to the sale, offering, or provision of accident and sickness insurance, including, but not limited to, requirements imposed by Articles 1.2 (§ 32.1-137.7 et seq.) and 2.1 (§ 32.1-138.6 et seq.) of Chapter 5 of Title 32.1, §§ 38.2-23238.2-232, 38.2-316, and 38.2-316,38.2-316.1, and Chapters 34 (§ 38.2-3400 et seq.), 35 (§ 38.2-3500 et seq.), 37.1 (§ 38.2-3717 et seq.), 42 (§ 38.2-4200 et seq.), 43 (§ 38.2-4300 et seq.), 45 (§ 38.2-4500 et seq.), 58 (§ 38.2-5800 et seq.), and 59 (§ 38.2-5900 et seq.).

Is in a hazardous financial condition, as determined by an examination by the CommissionerCommission conducted in accordance with the Financial AnalysisCondition Examiners Handbook of the National Association of Insurance Commissioners;

A certificate of registration issued pursuant to this section shall be valid for three years from the date of issuance by the Commission.Commission unless the registration is revoked or suspended pursuant to § 38.2-6404.

A notice in a form prescribed by the Commission that the health benefit plan is being procured from a foreign health insurer that is registered by the Commission to provide or issue such plan, but that the foreign health insurer is not licensed or regulated by the Commission and that there is no protection under the Virginia Life, Accident and Sickness Insurance Guaranty Association, established under Chapter 17 (§ 38.2-1700 et seq.), against financial loss to claimants or policyholders or plan holders because of the insolvency of an unlicensed foreign health insurer.insurer not licensed in the Commonwealth.

The procedures and standards established under subsection B shall be applied on a nondiscriminatory basis so as not to place greater responsibilities on foreign health insurers than the responsibilities placed on licensed health insurersinsurers. doing business in the Commonwealth.

The CommissionerCommission shall be authorized to conduct market conduct and solvencyfinancial condition examinations of all out-of-stateforeign companieshealth insurers seeking to offer health benefit plans in the Commonwealth or who have been given approval to offer health benefit plans in the Commonwealth.

Such examinations shall be conducted in the same manner and under the same terms and conditions as for domestic insurers licensed to sell health benefitinsurers. plans in the Commonwealth.

Provide for regulatory requirements that are more stringent than those applicable to carriers that are licensed by the Commissioner to provide health benefitinsurers; plans in the Commonwealth;