BEFORE THE STATE AUDITOR AND COMMISSIONER OF INSURANCE

                                                                 OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 6.6.4601 and 6.6.4602, and the adoption of NEW RULE I pertaining to Montana Life and Health Insurance Guaranty Association Act and Notice Concerning Coverage Limitations and Exclusions

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NOTICE OF AMENDMENT AND ADOPTION

 

TO:  All Concerned Persons

 

            1.  On May 12, 2011, the State Auditor and Commissioner of Insurance published MAR Notice No. 6-192 regarding the public hearing on the proposed amendment and adoption of the above-stated rules at page 700 of the 2011 Montana Administrative Register, issue number 9.

 

2.  On June 2, 2011, the State Auditor and Commissioner of Insurance held a public hearing to consider the proposed amendment and adoption of the above-stated rules.  One comment was received by the June 10, 2011, comment deadline.

 

3.  The commissioner has thoroughly considered the comment received.  A summary of the comment received and the commissioner's response are as follows:

 

COMMENT 1:  One comment was received from the American Council of Life Insurers (ACLI) expressing general support for the amendment and adoption of the administrative rules as proposed, but expressing concern regarding the applicability date of the rule changes.  The ACLI stated that insurers need a minimum of 60 days to implement the changes to the notice form and suggested further amending ARM 6.6.4602 to state that the notice adopted in New Rule I (ARM 6.6.4603) would be delivered to policyowners for policies issued or renewed on or after October 1, 2011.

 

Response 1:  The Montana Life and Health Insurance Guaranty Association Act provides at Mont. Code Ann. § 33-10-210(2), that after the Commissioner approves the notice to policyowners, member insurers have 60 days to begin issuing the notice.  Accordingly, it is not necessary to further amend ARM 6.6.4602 to allow 60 days for member insurers to begin issuing the new notice because the statute already provides this. 

 

A date certain to begin using the new notice can be determined by counting 60 days from the effective date of these rule changes.  The Insurance Department anticipates that the Notice of Amendment and Adoption for these rule changes will be published in the Montana Administrative Register on July 28, 2011, and therefore on July 29, 2011, the changes would be effective pursuant to Mont. Code Ann. § 2-4-306, and would be adopted by the Commissioner.  Given 60 days under Mont. Code Ann. § 33-10-210(2) to begin using the new notice, member insurers should begin issuing the new notice no later than September 27, 2011, to be in compliance.

 

4.  The commissioner has amended ARM 6.6.4601 and 6.6.4602 exactly as proposed.

 

5.  The commissioner has adopted New Rule I (ARM 6.6.4603) exactly as proposed.

 

/s/ Christina L. Goe                                       /s/­­­­­ Jesse Laslovich _________   

            Christina L. Goe                                            Jesse Laslovich

            Rule Reviewer                                               Chief Legal Counsel

 

Certified to the Secretary of State July 18, 2011.