GENERAL NOTICES/ERRATA
STATE CORPORATION COMMISSION
Bureau of Insurance
February 2, 2015
Administrative Letter 2015-01
To: All Companies Licensed to Write Accident and Sickness Insurance in Virginia, All Health Services Plans and Health Maintenance Organizations Licensed in Virginia (Collectively Referred to as "Carriers" in this Letter)
Re: Section 38.2-3418.17 of the Code of Virginia - Coverage for Autism Spectrum Disorder - Section 38.2-3432.2 - Guaranteed Availability
The 2011 Virginia General Assembly enacted § 38.2-3418.17 of the Code of Virginia (Code), known as the autism mandate, which provides for the diagnosis and treatment of autism spectrum disorder in children from age 2 through age 6, including the treatment known as applied behavior analysis (ABA). Among other things, subsection F as written specifically exempts "plans issued in the individual market or small group markets to employers with 50 or fewer employees…." (emphasis added). Further, subsection L specifically exempts a Qualified Health Plan (QHP) from providing coverage for specific benefits that exceed essential health benefits (i.e., ABA) in the SHOP Exchange.
The Bureau of Insurance (Bureau) has been approached by several carriers who have asked for advice concerning this provision's applicability to health plans that will be issued in the small group market on or after January 1, 2016, when the definition of "small employer" increases from a maximum of 50 employees to 100 employees pursuant to § 38.2-3431. This issue is further complicated by guaranteed availability requirements.
Section 38.2-3432.2 A 2 provides:
All products that are approved for sale in the small group market that the health insurance issuer is actively marketing must be offered to all small employers, and the health insurance issuer must accept any employer that applies for any of those products.
While the plain language of the autism mandate applies only to health plans sold to employers with more than 50 employees, the guaranteed availability requirements of the Code require that any plan approved for sale and actively marketed must be offered to all small employers. Therefore, unless and until clarifying language is adopted by the Virginia General Assembly, the Bureau will expect carriers to provide autism spectrum disorder coverage to all employers in the small group market on or after January 1, 2016. Further, carriers will not be able to renew current plans on or after January 1, 2016 that do not provide coverage as stated in this letter, unless an exception applies.
A plan filed as a QHP for use on the SHOP Exchange may apply the exemption contained in subsection L of § 38.2-3418.17. Related forms may contain variable language showing inclusion or exclusion of the ABA benefit for QHPs.
Questions relating to this matter should be referred to Julie Blauvelt, Insurance Policy Advisor, Bureau of Insurance, Life and Health Division, State Corporation Commission, P.O. Box 1157, Richmond, VA 23218, telephone (804) 371-9865, or email julie.blauvelt@scc.virginia.gov.
/s/ Jacqueline K. Cunningham
Commissioner of Insurance
Bureau of Insurance
February 5, 2015
Administrative Letter 2015-02
To: All Carriers Licensed to Market Credit Life Insurance or Credit Accident and Sickness Insurance in Virginia
Re: Credit Insurance Experience Exhibits
§ 38.2-3730 of the Code of Virginia
In accordance with § 38.2-3730 B of the Code of Virginia, adjustments to the prima facie rates applicable to credit life and credit accident and sickness insurance for the triennium commencing January 1, 2016 will be established and published later this year.
This letter serves as a reminder to all carriers licensed to write either or both of these coverages that the Credit Insurance Experience Exhibit (CIEE) for the 2014 reporting year, from which information will be obtained to properly calculate these rates, must be submitted in accordance with Virginia Code § 38.2-3730 A, no later than April 1, 2015.
In order to expedite the review process, we are requesting that ALL carriers complete the attached questionnaire. This questionnaire will enable the Bureau of Insurance (the Bureau) to identify carriers who have Virginia experience to report on the CIEE from those who do not have any Virginia experience to report. Carriers who have experience to report must answer all questions and submit the questionnaire to the Life and Health Forms and Rates Section of the Bureau. Because of the time constraints under which the rate calculation must be completed, it is imperative that carriers submit complete and accurate CIEEs on or before April 1, 2015. Please note that carriers with no experience to report are not required to answer questions 1-9 on the questionnaire, however, all carriers must return the questionnaire to the Bureau with the company's name, NAIC # and contact information completed.
Attached to this administrative letter are examples of some of the problems identified with CIEE filings in previous years. In some instances, although information was correct, an explanation was necessary to properly evaluate the information. Carriers are hereby directed to review the attachment to ensure that similar problems do not recur this year. Please note that the CIEE must be filed on a direct basis, i.e. before taking into account reinsurance ceded.
We strongly encourage all carriers to electronically submit the questionnaires and the completed CIEEs, if required, to the Life and Health Forms and Rates Section via the Company Filing Portal. To access the questionnaire and the portal, go to http://www.scc.virginia.gov/boi/co/miscforms.aspx, and scroll down to "Credit Insurance Experience Exhibit." You will note that instructions are provided on the Bureau's website for submitting the documents through the portal.
Please contact the Bureau with any questions or requests for clarification. Questions or requests for clarification regarding the filing of required documents should be directed to Amanda McCauley, telephone (804) 371-0034, or email amanda.mccauley@scc.virginia.gov.
Questions or requests for clarification regarding the use of the portal should be directed to Trish Todd, telephone (804) 371-9195, or email trish.todd@scc.virginia.gov.
/s/ Jacqueline K. Cunningham
Commissioner of Insurance
The following are examples of problems identified in filings of the Credit Insurance Experience Exhibits (CIEEs) in previous reporting years. Companies are directed to review the information below to ensure that similar problems do not recur in their 2014 CIEEs. Any of the following situations legitimately applicable to a 2014 CIEE should include an appropriate explanation in the attached questionnaire.
• Wrong state submitted, state not indicated, or Virginia experience not separated. The Bureau received a number of exhibits in which a section was missing, the wrong state or year was submitted, or Virginia experience was not provided separately, i.e. Grand Totals.
• Prima facie premium not listed. The prima facie premium is needed to evaluate the rates. Each company should explicitly state the prima facie premium on the appropriate exhibit line, even if it is the same as earned premium.
• Prima facie premiums greater than earned premiums. While this may not be a problem, our experience is that most companies charge the maximum rate allowed. This may be indicative of a miscalculation, especially on MOB business.
• Earned premiums greater than prima facie premium. For MOB business, this may be indicative of a miscalculation. Such premiums violate statutes unless the premium rates have been approved. If the premium rates have been approved, we ask that reporting carriers provide the Bureau with the approval date(s) to facilitate our analysis.
• Changes in the reserves reported from the end of one reporting year to the beginning of the subsequent reporting year. This can cause previously charged premium and claims to disappear. It can also cause claims without corresponding premium and vice versa. Restatement of opening reserves merely results in delay and unnecessary expense for the Bureau and, in light of the purpose of these CIEEs, companies should ensure that opening reserves (at the beginning of the year) are equal to closing reserves (at the end of the previous year).
• Claim reserve errors. These cause inaccurate incurred claims and may also indicate inadequate reserves for the product line.
• Premium reserve errors. These cause inaccurate premium reserve calculations.
• Assumption reinsurance transactions. If any business is transferred by assumption reinsurance, include a cover letter identifying the companies involved and the reserve amounts impacted by the transaction.
• Company Name Changes or Mergers. If the reporting company has changed its name and/or has been involved in a merger, full details should be provided to enable the Bureau of Insurance to appropriately combine experience for the past three years.
• Calculation of Earned Premium at Prima Facie Rates. Prima facie premium must be calculated using the prima facie rates approved and published by the Bureau effective January 1, 2016. Approval by the Bureau to charge alternate rates or use alternative rate structures does not constitute a change to the published prima facie rates, and these alternative rates or rates structures should not be used in calculating earned premium at prima facie rates.
DEPARTMENT OF ENVIRONMENTAL QUALITY
Total Maximum Daily Load for Mattaponi River
The Department of Environmental Quality (DEQ) seeks written and oral comments from interested persons on the development of a watershed plan for the Mattaponi River. The following stream segments are listed on the § 303(d) TMDL Priority List and Report as impaired for the recreation use due to exceedances of the state's water quality standards for bacteria.
Section 303(d) of the Clean Water Act and § 62.1-44.19:7 C of the State Water Control Law requires the DEQ to develop total maximum daily loads (TMDLs) for pollutants responsible for each impaired water contained in Virginia's § 303(d) TMDL Priority List and Report, and Virginia state law requires implementation plans for areas with TMDLs. A component of a TMDL is the wasteload allocation (WLA); therefore, this notice is provided pursuant to § 2.2-4006 A 14 of the Administrative Process Act for any future adoption of WLAs associated with this watershed plan.
The first public meeting on the development of the watershed plan to address the bacteria impairments for these segments will be held Wednesday, March 18, 2015, at 6 p.m., Bowling Green Town Hall, Rappahannock Reception Room, 117 Butler Street, Bowling Green, VA 22427.
In case of inclement weather, the alternate meeting date is Monday, March 23, 2015, at 6 p.m., Bowling Green Town Hall, Rappahannock Reception Room, 117 Butler Street, Bowling Green, VA 22427.
Please note that the alternate meeting date will be used if the offices of Caroline County are closed due to inclement weather on March 18, 2015. Caroline County's website is www.visitcaroline.com.
The public comment period will begin on March 18, 2015, and will end on Friday, April 17, 2015. An advisory committee to assist in development of this watershed plan has been scheduled to convene on Wednesday, March 4, 2015.
Information on the development of the watershed plan for the impairments is available upon request. Questions or information requests should be addressed to the DEQ contact person listed below. Please note that all written comments should include the name, address, and telephone number of the person submitting the comments and should be sent to Rebecca Shoemaker, Virginia Department of Environmental Quality, 13901 Crown Court, Woodbridge, VA 22193, telephone (703) 583-3807, or email rebecca.shoemaker@deq.virginia.gov.
Water Quality Study of Moores Creek, Meadow Creek, Schenks Branch, and Lodge Creek
Committee meeting: A Technical Advisory Committee meeting that is open to the public will be held Thursday, March 5, 2015, at 9 a.m. at the Thomas Jefferson Planning District Commission's Water Street Center at 407 East Water Street, Charlottesville, VA. This meeting will be open to the public and all are welcome. In the case of inclement weather, the meeting will be postponed until Friday, March 6, 2015, at 9 a.m. For more information, please contact Tara Sieber at tara.sieber@deq.virginia.gov or telephone (540) 574-7870.
Purpose of notice: The Department of Environmental Quality (DEQ) and its contractors, Virginia Tech's Biological Systems Engineering Department, will discuss population data for the development of a water quality study known as a total maximum daily load (TMDL) for Moores Creek, Lodge Creek, Meadow Creek, and Schenks Branch. This is an opportunity for local residents to share information about the area and its local streams.
Meeting description: The Technical Advisory Committee will meet to discuss and review permit details, discuss possibilities of cross-program collaboration, and review next steps. Section 303(d) of the Clean Water Act and § 62.1-44.19:7 C of the Code of Virginia require DEQ to develop TMDLs for pollutants responsible for each impaired water contained in Virginia's § 303(d) TMDL Priority List and Report.
Description of study: These streams do not host a healthy and diverse population of aquatic life and subsequently was listed as impaired for the "general benthic (aquatic life)" water quality standard. This water quality study (TMDL) will review all data collected and determine the cause of the benthic impairment through a weight of evidence approach. Reductions and a TMDL for the cause of the impairment will be developed.
| Stream | County | Impairment |
| Moores Creek | Charlottesville/
Albemarle | Aquatic Life |
| Lodge Creek | Charlottesville/
Albemarle | Aquatic Life |
| Meadow Creek | Charlottesville/
Albemarle | Aquatic Life |
| Schenks Branch | Charlottesville | Aquatic Life |
How to participate: The meetings of the Technical Advisory Committee are open to the public and all interested parties are welcome. Written comments are always accepted. For more information or to submit written comments, please contact Tara Sieber, Department of Environmental Quality, Valley Regional Office, P.O. Box 3000, Harrisonburg, VA 22801, telephone (540) 574-7870, FAX (540) 574-7878, or email tara.sieber@deq.virginia.gov.
Total Maximum Daily Loads for Wolf Creek, Laurel Creek, and Dry Run
The Department of Environmental Quality (DEQ) seeks written and oral comments from interested persons on the development of total maximum daily loads (TMDLs) for Wolf Creek, Laurel Creek, and Dry Run in Bland, Giles, and Tazewell Counties. These streams are listed on the 2012 § 303(d) TMDL Priority List and Report as impaired due to violations of the state's water quality standards for bacteria.
Section 303(d) of the Clean Water Act and § 62.1-44.19:7 C of the State Water Control Law requires DEQ to develop TMDLs for pollutants responsible for each impaired water contained in Virginia's § 303(d) Priority List and Report.
The impaired segments include: 28.7 miles of Wolf Creek from the Little Creek confluence in Tazewell County downstream to the confluence with the New River in Giles County; 1.60 miles of Laurel Creek in Bland County extending from the confluence of Dry Fork downstream to the confluence with Wolf Creek; and 5.0 miles of Dry Fork in Bland County extending from East River Mountain to the West Virginia state line downstream to North Gap, excluding the headwaters.
The final public meeting on the development of the TMDL to address the bacteria impairments for these segments will be held on March 26, 2015, from 6 p.m. to 8 p.m. at the Bland County High School, Room 111A, 176 Eagles Road, Rocky Gap, VA. In the event of inclement weather the meeting will be held at the same location on March 31, 2015.
The public comment period will begin on March 26, 2015, and end on April 27, 2015.
A component of a TMDL is the wasteload allocations (WLAs); therefore, this notice is provided pursuant to § 2.2-4006 A 14 of the Administrative Process Act for any future adoption of the TMDLs associated WLAs. Information on the development of the TMDLs for these impairments is available upon request. Questions or information requests should be addressed to one of the following agency contacts:
Martha Chapman, Department of Environmental Quality, Southwest Regional Office, 355-A Deadmore Street, Abingdon, VA 24210, telephone (276) 676-4800, or email martha.chapman@deq.virginia.gov.
Mary Dail, Department of Environmental Quality, Blue Ridge Regional Office, 3019 Peters Creek Road, Roanoke, VA 24019, telephone (540) 562-6715, or email mary.dail@deq.virginia.gov.
All written comments should include the name, address, and telephone number of the person submitting the comments and should be sent to either agency contact listed above.
VIRGINIA LOTTERY
Director's Orders
The following Director's Orders of the Virginia Lottery were filed with the Virginia Registrar of Regulations on February 18, 2015. The orders may be viewed at the Virginia Lottery, 900 East Main Street, Richmond, Virginia, or at the office of the Registrar of Regulations, 201 North 9th Street, 2nd Floor, Richmond, Virginia.
Director's Order Number Eleven (15)
Coastal Investments Retailer Incentive Program Promotions - Virginia Lottery Program Requirements -
Program 1: "Stretch Your Scratch Goal"
Program 2: "$100,000 Home Changer Free Item With Purchase"
Program 3: "Convenience Cash Promotion"
(This Director's Order becomes effective on April, 1, 2015, and shall remain in full force and effect until ninety (90) days after the conclusion of the final incentive program promotion, unless otherwise extended by the Director)
Director's Order Number Fourteen (15)
"Spring Scratch Sales Contest Retailer Incentive Promotion" - Virginia Lottery Retailer Incentive Program Requirements (This Director's Order becomes effective on April, 1, 2015, and shall remain in full force and effect until ninety (90) days after the conclusion of the final incentive program, unless otherwise extended by the Director)
Director's Order Number Twenty-Five (15)
Virginia's Instant Game Lottery 1531 "Triple 777" Final Rules For Game Operation (effective February 17, 2015)
STATE WATER CONTROL BOARD
Proposed Consent Order for Bath County Service Authority
An enforcement action has been proposed for Bath County Service Authority (BCSA) for violations in Bath County, Virginia. The State Water Control Board proposes to issue an amendment to the consent order to BCSA to address noncompliance with State Water Control Law. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Tiffany Severs will accept comments by email at tiffany.severs@deq.virginia.gov, FAX at (540) 574-7878, or postal mail at Department of Environmental Quality, Valley Regional Office, 4411 Early Road, P.O. Box 3000, Harrisonburg, VA 22801, from March 9, 2015, through April 9, 2015.
Proposed Consent Special Order for the Town of Virgilina
An enforcement action is being noticed for the Town of Virgilina for violations in Halifax County, Virginia. The special order by consent addresses and resolves violations of environmental law and regulations. A description of the action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Jerry Ford, Jr. will accept comments by email at jerry.ford@deq.virginia.gov, or postal mail at Department of Environmental Quality, Blue Ridge Regional Office, 3019 Peters Creek Road, Roanoke, VA 24019, from March 9, 2015, through April 8, 2015.
VIRGINIA CODE COMMISSION
Notice to State Agencies
Contact Information: Mailing Address: Virginia Code Commission, General Assembly Building, 201 North 9th Street, 2nd Floor, Richmond, VA 23219; Telephone: Voice (804) 786-3591; FAX (804) 692-0625; Email: varegs@dls.virginia.gov.
Meeting Notices: Section 2.2-3707 C of the Code of Virginia requires state agencies to post meeting notices on their websites and on the Commonwealth Calendar at http://www.virginia.gov/connect/commonwealth-calendar.
Cumulative Table of Virginia Administrative Code Sections Adopted, Amended, or Repealed: A table listing regulation sections that have been amended, added, or repealed in the Virginia Register of Regulations since the regulations were originally published or last supplemented in the print version of the Virginia Administrative Code is available at http://register.dls.virginia.gov/documents/cumultab.pdf.
Filing Material for Publication in the Virginia Register of Regulations: Agencies use the Regulation Information System (RIS) to file regulations and related items for publication in the Virginia Register of Regulations. The Registrar's office works closely with the Department of Planning and Budget (DPB) to coordinate the system with the Virginia Regulatory Town Hall. RIS and Town Hall complement and enhance one another by sharing pertinent regulatory information.