Due to new regulatory requirements, the following will be implemented for American General Life Insurance (AGL) Accident and Health products offered in New Mexico and the District of Columbia, effective January 23, 2017:
- New Mexico — Sales of CriticalCare Plus® will be discontinued
Transition rules for CriticalCare Plus in New Mexico
- Beginning January 23, 2017, distribution partners should discontinue active sales of CriticalCare Plus.
- Effective March 1, 2017, CriticalCare Plus applications from the state of New Mexico will no longer be accepted in the home office.
- District of Columbia — New supplemental application (AGLC110469-DC) that includes disclosure language, must be completed for all A&H products
Transition rules for District of Columbia supplemental application
- Effective January 23, 2017, the new supplemental application will be available in the Forms Depot.
- Effective March 1, 2017, all A&H application packets received must include this new supplemental application to be considered in good order.
These changes will ensure compliance with local, state, and federal law while providing added transparency to A&H policyholders.
DC Supplemental application details
In the District of Columbia, the regulation impacts “Excepted Benefit Plans” requiring disclosure language be placed on the application for all supplemental benefit policies, including the A&H products listed below:
- AG AccidentChoice Plus®
- EmergencyCare Plus®
- AG AccidentCare Direct Plus®
- CriticalCare Plus®
The Department of Insurance (DOI) is requiring that all issuers of excepted benefit plans notify the insureds that: “coverage under these specific plan types does not qualify as minimum essential coverage as required under the federal Affordable Care Act (ACA).” The requirement is intended to notify applicants/policyholders that even with one of the above products in force, they may still be subject to the IRS tax penalties if they do not also have qualifying primary health coverage inforce.
Below is the mandatory disclosure language that will be included in the supplemental application that will now be required for all A&H sales in the District of Columbia:
“NOTICE TO CONSUMER: THIS IS A SUPPLEMENT TO HEALTH INSURANCE AND IS NOT A SUBSTITUTE FOR MAJOR MEDICAL COVERAGE. LACK OF MAJOR MEDICAL COVERAGE (OR OTHER MINIMUM ESSENTIAL COVERAGE) MAY RESULT IN AN ADDITIONAL PAYMENT WITH YOUR TAXES. ALSO, THE BENEFITS PROVIDED BY THIS POLICY CANNOT BE COORDINATED WITH THE BENEFITS PROVIDED BY OTHER COVERAGE. PLEASE REVIEW THE BENEFITS PROVIDED BY THIS POLICY CAREFULLY TO AVOID A DUPLICATION OF COVERAGE.”
A&H product discontinuation (NM) and Application form changes required (DC)