Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Customer Satisfaction With Digital Claims Declines Again: J.D. Power
“Customer satisfaction with insurers’ digital claims systems declined for the second consecutive year, according to a J.D. Power survey of auto and home policyholders. Mark Garrett, director of P/C insurance intelligence for the consumer research company, said that challenges such as rising repair costs and supply chain disruptions are driving longer claims cycle times. ” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Several New Group Health Plan Reporting Deadlines are Approaching “To review all of the major CAA and transparency in coverage (TiC) requirements, you can access a checklist for plan sponsors here and a checklist for plan service providers here. This article summarizes the new CAA and TiC reporting requirements with deadlines that are soon approaching.” Full Article – Foley & Lardner LLP
First Circuit Creates New Fiduciary Duty Under ERISA for Insurers Accepting Group Premiums from Employers “Due to a circuit split, Employers in the 1st, 4th and 8th Circuits should check their benefit plans’ terms to determine who is responsible for enrollment duties and eligibility verification, including determining when to accept premiums from employees.” Full Article – Littler
IRS Finalizes Regs Permanently Extending Deadlines for Furnishing ACA Statements to Individuals “The regulations permanently extend the deadline for furnishing a given year’s Forms 1095-B and 1095-C to individuals until 30 days after January 31 of the immediately following year (or the next business day, if the 30th day falls on a Saturday, Sunday, or legal holiday).” Full Article – Thomson Reuters/ EBIA
Senators Murray, Baldwin Introduce Reproductive Health Travel Fund Act “The Reproductive Health Travel Fund Act would set up a grant program, authorized at $350 million per year for FY23 through FY27. The bill would allow the Treasury Secretary to award grants to eligible entities to pay for travel-related expenses and logistical support for individuals accessing abortion services.” Full Article – Committee on Health, Education, Labor and Pensions, U.S. Senate
When Cash Is Not King: Holiday Gifts as Nontaxable ‘De Minimis’ Fringe Benefits “This post highlights the tax consequences of employer-sponsored holiday perks such as gift cards, turkeys, hams and gift baskets. Under the current tax rules, employers may give infrequent low value gifts of property or services to employees on a tax-free basis. To qualify as a tax-free de minimis fringe benefit, a gift from an employer must be of nominal value, infrequent, and not similar to cash.” Full Article – Verrill Dana LLP
Implementing the Family Glitch Fix on ACA Marketplaces “The Biden administration’s new rule, effective for the 2023 plan year, gives dependents with an offer of unaffordable employer-based family coverage access to marketplace subsidies. But a successful family glitch fix will require marketplaces to implement new infrastructure, conduct significant outreach, and ensure consumers have sufficient enrollment assistance and ample time to sign up for more affordable coverage.” Full Article – The Commonwealth Fund
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
CALIFORNIA
Who is A “Designated Person?” Changes to California’s Medical Leave
“The Expansion of California Family Rights Act, AB 1041, was signed into law by Governor Newsom on September 29, 2022. AB 1041 expands the class of people for whom an employee may take leave to care for under the California Family Rights Act (“CFRA”) to include a “designated person.” Full Article
– Sheppard Mullin LLP
NEW YORK
New York Bars Discipline for Legally Protected Employee Absences
“On November 21, 2022, New York Governor Kathy Hochul signed a law clarifying that it is unlawful for an employer to penalize an employee for any absence protected under federal, state or local law. (S.1958/A.8092). The law goes into effect on February 19, 2023.” Full Article
– Jackson Lewis P.C.
COLORADO
New Guidance on Bonuses and Commissions May Cause Headaches for Employers
“Organizations commonly require employees to be employed on the date a commission or bonus is paid to receive the commission or bonus. The Colorado Department of Labor and Employment (CDLE), which interprets and administers Colorado’s Wage Act, recently indicated that practice is not permissible, which means employers will need to revisit their bonus agreements and commission plans sooner rather than later.” Full Article
– Holland & Hart LLP
ILLINOIS
Illinois Appellate Court Holds Businesses Must Implement Biometric Retention and Destruction Policies Before Collecting Biometric Data
“On November 30, 2022, the Illinois Second District Appellate Court reversed the trial court’s grant of summary judgment in Defendant’s favor in a case entitled Mora v. J&M Plating, Inc.” Full Article
– Seyfarth Shaw LLP
WASHINGTON
Washington State’s Pay Transparency Law Takes Effect January 1, 2023
“SB 5761 amends Washington’s Equal Pay and Opportunity Act (RCW 49.58) to require employers with 15 or more employees to include in each job posting the wage scale or salary range of the job and a general description of all of the benefits offered and to identify other compensation offered.” Full Article
– McDermott Will & Emery LLP
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