H.B. 2270 - Insurance

• Adds new prohibition on rescission of health insurance coverage after an individual is covered, allowing rescission only for fraud or intentional misrepresentation of material fact, with at least 30 days advance written notice required.

• Expands insurance fraud complaint authority to include chapters 431, 432, and 432D (excluding workers' compensation), and clarifies that long-term care insurance falls within the definition of health insurance for regulatory purposes.

• Requires 80% of net investment income on reserves for managed care plans to be applied to rate determination and filing, with waiver possible if it would impair minimum reserve or solvency requirements.

• Repeals sections 431M-3 through 431M-7 relating to peer review, specific mental health and substance abuse benefits, and related regulations, replacing them with mental health parity requirements aligned with federal law.

• Updates definitions and requirements for mutual benefit societies, fraternal benefit societies, health maintenance organizations, and dental insurers regarding uncovered expenditures and applicable insurance regulations; effective July 1, 2050.