REGULATORY ACTIVITY:

• Revised bulletin number 117 regarding compliance with regulatory requirements during the COVID-19 Crisis.  To view this bulletin, go to https://insurance.delaware.gov/information/bulletins/ .
• Issued revised bulletin number 33 for adjusters regarding compliance with regulatory requirements during the COVID-19 Crisis.  To view the bulletin, go to https://insurance.delaware.gov/information/bulletins/ .

REGULATORY ACTIVITY:

• Posted notice of a proposed regulation regarding registration of Pharmacy Benefits Managers.  To view the notice and proposed rule, go to https://insurance.delaware.gov/information/proposedregs/.

REGULATORY ACTIVITY:

• Issued an update to bulletin number 116 Domestic and Foreign Insurer and bulletin 32 Producers and Adjusters regarding additional guidance relating to COVID-19 updated March 26, 2020.

REGULATORY ACTIVITY:

• Published the final adopted rule regarding rule 802 Delaware Workplace Safety Regulation.  The order adopting the final rule was adopted January 15, 2020.  It was published in the state register February 3, 2020.  To view the order and adopted rule, go to http://regulations.delaware.gov/register/february2020/final/23%20DE%20Reg%20676%2002-01-20.htm
• Published the 22nd Annual Report on the Status of Workers' Compensation Management.  To view a copy of the report, go to https://dia.delawareworks.com/workers-comp/

FEE SCHEDULE NEWS:

• The state has adopted their new medical and facility fee schedule with an effective date of January 31, 2020. The next update is scheduled for January 2021.

REGULATORY ACTIVITY:

• Regulation 802 Delaware Workplace Safety Regulation was proposed for comment and the comment period ended on December 31, 2019. To view the proposed regulation, go to https://insurance.delaware.gov/information/proposedregs/ .

LEGISLATIVE ACTIONS:

• House Bill 94

This Act will increase payments of child support arrears or retroactive support from payments for settlements and awards from negligence, personal injury, and workers’ compensation cases by requiring that all insurers share information with an insurance claim data collection organization.  The Division of Child Support Services ("Division") uses an insurance claim data collection organization to match individuals who are in arrears on child support or who owe retroactive child support with individuals with insurance claims based upon negligence, personal injury, or workers' compensation cases. The data collection organization performs a data match  of  the  claimants  provided  by  insurers  and  child  support  obligors  provided  by  the  Division.  The data collection organization provides reports of matches to the Division so that the Division can issue a lien against the insurance claim to collect the child support arrears or retroactive support.  Currently, some insurers voluntarily submit claim information to the insurance claim data collection organization and in 2018, $424,977 in unpaid child support was collected through this process. This Act requires that all insurers submit claim  information to  the insurance  claim  data  collection  organization  and  is  expected  to collect  an  additional  $150,000 - $200,000 in unpaid child support. This Act also allows written notice of a lien or action to perfect the lien to be sent by electronically or by first class mail to conform to industry practices. This  Act  also  makes  technical  corrections  to  conform  existing  law  to  the  standards  of  the  Delaware  Legislative Drafting Manual. Effective Date September 11, 2019.

REGULATORY ACTIVITY:

• Published a final order regarding compensation for Chiropractic Services. Regulation 1318 Compensation for Chiropractic Services prohibits insurance carriers and third-party administrators who are regulated by the Department from including in any health insurance policy terms and conditions that unreasonably discriminate against access to chiropractic care or services. It also prohibits compensation of Doctor of Chiropractic that is unreasonable or discriminatory. In the context of comments received on the Department’s proposed new Regulation 1321, the Commissioner acknowledged that the term “certificate,” as used in subsections 5.1 and 5.2 of that regulation, could imply extraterritoriality for that regulation, and that the underlying 24 Del.C. §2621 does not give the Commissioner extraterritorial jurisdiction (see adoption order published elsewhere in this edition of the Register of Regulations). Similarly, subsection 5.1 of Regulation 1318 would benefit from a similar clarification in that underlying 24 Del.C. §716 does not give the Commissioner extraterritorial jurisdiction. Accordingly, the Commissioner is clarifying that 18 DE Admin. Code 1318 § 5.1 applies only to certificates issued under Delaware policies or contracts. This amendment is exempt from the requirement of public notice and comment because it is a non-substantive change in existing regulations to correct technical errors, pursuant to 29 Del.C. §10113(b) (4). This order shall be effective 10 days after publication in the Register of Regulations.

FEE SCHEDULE NEWS:

• The state has adopted their new medical and facility fee schedule with an effective date of January 31, 2019. The next update is scheduled for January 2020.

LEGISLATIVE ACTIONS:

• House Bill 318

This bill updates the Delaware Insurance Guaranty Association (DIGA) Act to more closely align it with the National Association of Insurance Commissioners (NAIC) and National Conference of Insurance Guaranty Funds (NCIGF) Model Acts. DIGA in a non-profit association, established under Chapter 42, Title 18 of the Delaware Code as a safety net to protect residents of this state when a covered property and casualty claim arises from an insolvency of a member insurance company. DIGA is fully funded by assessments levied on member insurance companies and remaining assets from insolvent insurance companies. Section 1 clarifies the types of insurance that do not fall under this chapter. Section 2 clarifies the definition of what is excluded from the definition of a “covered claim” and adds “ocean maritime insurance” to this chapter. Section 3 provides for an increase in the maximum amount of covered claims from $300,000 to $500,000 (workers compensation coverage remains unlimited) and specifies when the Association would be relieved of any obligation to defend an insured on a covered claim. Section 3 permits procedures to be established for DIGA to retrieve net worth information from an insured, with consequences if the information is not provided in a timely basis. Section 3 also provides DIGA with the ability to bring an action against any third-party administrator or other party who refuses to release information related to an insolvent company interfering with DIGA’s ability to carry out its duties. Section 3 also provides DIGA with the authority, subject to approval by the Commissioner, to provide claims-handling services to any “run-off insurer” provided the Association expenses related thereto are fully reimbursed. Section 4 renames § 4212 (formerly non-duplication of recovery) and clarifies that all other insurance coverage (excluding Medicare) is primary to DIGA coverage. Section 5 removes unnecessary language regarding the Board of Director’s functions in relation to making recommendations on the status of member insurers. Section 6 provides the Board of Directors the right to request financial and other information from the liquidator, receiver, or statutory successor of an insolvent insurer covered by this chapter.  Effective Date July 17, 2018.

• House Bill 408

This bill amends the Workers’ Compensation Act to include a provision permitting Industrial Accident Board hearing notices and decisions to be sent by secure email with an electronic receipt in lieu of certified mail. This will save money for the State and time for the parties and their attorneys. Effective Date July 17, 2018.