Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.insur From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: insur Tue, Mar 17 1992 Date: Tue, 17 Mar 92 05:44:53 EST Message-ID: 03-17 0000 DECISIONLINE: Insurance USA TODAY Update March 17, 1992 Source: USA TODAY:Gannett National Information Network UNLICENSED INSURERS SOUGHT: California Insurance Commissioner John Garamendi Monday vowed to put illicit unlicensed insurers out of business. He unveiled a legislative and regulatory package designed to crack down on unscrupulous insurers who defraud California consumers. (For more, see special Crackdown package below.) STATES PASS MANDATES: Mandated benefits continue to be popular among state legislators, with 1991 ushering in 41 new mandates, according to the Blue Cross and Blue Shield Association. Overall, the most frequently mandated service is alcoholism treatment (required in 42 states), followed by mammography screening (41 states), mental health care (32 states) and drug abuse treatment (31 states). MARYLAND, CALIF. TOP LIST: The most prevalent provider mandates are for chiropractors (41 states), psychologists (38 states) and optometrists (35 states). States with the greatest number of mandates in force are Maryland (41), California (33), Connecticut (30) and Minnesota (30). The least mandate activity can be found in Alabama, Delaware, Idaho, South Carolina, Vermont and Washington, D.C. with fewer than 10. OMB RELEASES FUNDS: The Office of Management and Budget has released $68.8 million in contingency funds to the Health Care Financing Administration, including $22 million for Medicare contractors so they will continue providing toll-free phone service to beneficiaries. A total of $19.9 million will be used to reduce a backlog of cases and recover money owed to the federal government. GENERALI TAKES STAKE IN BANK: Assicurazioni Generali SpA, Trieste, Italy, will pay about $517.9 million for a 5% stake in Spain's newly formed Banco Central Hispanoamericano SA. Generali will be the largest shareholder in the banking group, formed from the merger of Banco Central SA and Banco Hispano Americano SA. INSURERS CAN BE HELD LIABLE: An insurance company can be held responsible for broader coverage touted in brochures rather than more restrictive coverage outlined in the actual policy, the Indiana Court of Appeals ruled Monday. Cited: 1990 case in which a woman bought a Guarantee Trust Life Insurance Co. policy based on the brochure, which didn't list limitations to coverage. NASSAU TO BE REIMBURSED: The Nassau County (New York) Board of Supervisors Monday adopted a local law which will enable the county to be reimbursed for medical and dental expenses for inmates who have health insurance. County Executive Thomas Gulotta estimated that the county could be reimbursed $1 million a year. The Nassau law covers inmates in county jail. SAFETY OF EVS QUESTIONED: Questions about the the safety of electric vehicles are being posed by regulators in Washington and elsewhere as the prospect grows that a sizable population of EVs could be on U.S. roads in the next decade. Brian O'Neill, president of the Insurance Institute for Highway Safety, a research group, says, "There are a lot of dimensions that haven't been thought all the way through." BCBSA MOVES TO SETTLE SUITS: The Blue Cross and Blue Shield Association has reached an agreement in principle to pay $8.6 million to settle all lawsuits stemming from the collapse of Blue Cross and Blue Shield of West Virginia. BCBSA will contribute the money to the estate of the former Blue Cross and Blue Shield Plan in Charleston, contingent upon dismissal of litigation in West Virginia involving BCBSA. SPECIAL PACKAGE ON CRACKDOWN: POLICYHOLDERS MAY BE LEFT OUT: Unlicensed companies, while able to offer cheaper policies, are often poorly capitalized and are unable to meet the strict California financial requirements placed upon licensed insurers, leaving policyholders empty-handed if an unlicensed company can't meet its financial obligations. In addition, policyholders would not be protected by the state guaranty fund if the company fails. READING POLICY ENCOURAGED: The package consists of four bills that have been introduced in the state legislature by Sen. Pat Johnston (D-Stockton), and Assemblymembers Barbara Friedman (D-Los Angeles), Xavier Becerra (D-Montebello) and Paul Horcher (R-Whittier). It would require agents and brokers to ensure that policyholders sign their policy contracts, encouraging the reading of policy disclosures. SURETY BONDS INCREASED: One part of the package increases surety bond requirements for insurance brokers and surplus lines brokers. The amounts for regular brokers are increased from $5,000 to $100,000; for surplus lines brokers the amounts are raised from the current $50,000 to $500,000. Higher bonds better protect consumers from losses when the insurer fails to meet its obligations. (End of package.) Insurance Editor: Michele Coleman. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM