Weekly Tip: Updates on Arizona and Florida

 

Weekly Tips

Updates on Arizona and Florida

5/21/2014

This week we want to provide you with some updates on Arizona and Florida. 

Arizona passed the Compact legislation earlier this spring.  The Compact legislation did include an opt-out of Long-Term Care products.  The effective date for Arizona to join the Compact is 90 days after sine die of the legislature.  The legislature did close on April 24th which makes them members on July 23rd.  Arizona will have 10 business days to review the Uniform Standards and notify the Insurance Compact of any additional opt outs.  With this said, filers may begin to add Arizona to product filings - submitted and/or approved filings - beginning on August 6th.  We will send a reminder about Adding a State to product filings as we get closer.  

We receive several questions whether the Insurance Compact will be accepting products for approval on behalf of Florida.  In 2013, Florida enacted a non-standard version of the Compact codified in 2013-140, Laws of Florida which becomes effective on July 1, 2014. While 80% of the enacted bill is based on the Compact, they added several provisions including ones that undermine the key agreements between the Compacting States including "Notwithstanding paragraph (2)(b) of Article XVI of the compact, standards adopted by this state continue to apply to the content, approval, and certification of products in this state."  Florida did not have any legislation in the 2014 session to amend or repeal this law and amendments to conform to the model language would be necessary in order to enter the Compact - which is essentially a contract or agreement between states and must be enacted in substantially similar form.  We applaud Florida for taking a step in the direction of the Compact and continue to work with them to address their concerns and hopefully make changes to the legislation so they may eventually participate in the Insurance Compact. For these reasons, the Insurance Compact is not planning to accept products for approval on behalf of Florida when the Florida legislation enacted in 2013 takes effect this summer.

If you have any questions about this Weekly Tip or either Arizona or Florida, please contact the Insurance Compact's office.