SB 1242 Summary

• Requires insurers to report suspected insurance fraud to the Department of Insurance's Fraud Division within 60 days after completion of investigation, and mandates agents/brokers to report fraudulent applications before placement using the Fraud Division's online portal or to the insurer's special investigative unit after placement.

• Requires the Insurance Commissioner to submit fingerprints of license applicants to the Department of Justice for criminal history background checks for 26 types of insurance licenses and related positions.

• Mandates one hour of insurance fraud education be added to ethics courses for insurance agents and brokers starting March 1, 2023, and requires license numbers to appear in professional emails for certain licensees.

• Clarifies long-term care insurance policyholder protections by specifying information to be provided in advance or at time of accelerated death benefit payments, allows 30-day cancellation periods, and permits immediate approval of policy loans under certain tax-exempt circumstances.

• Requires insurance pools to submit annual audited financial statements and actuarial reviews to the Insurance Commissioner within 180 days of fiscal year end, and updates various technical provisions related to policy cancellation notices and disability income insurance definitions.