Kibble & Prentice Insider

Red Flags Rule Update

Soon after we released the Notes from Counsel article, "Red Flags Rule" deadline for identity theft program offers opportunity to examine your company's cyber risk, letting you know about the rule's upcoming deadline, the Federal Trade Commission extended the deadline for enforcement of the rule to December 31, 2010. This extension should give you additional time to consider whether your company is impacted by the Red Flags Rule and what you can do to ensure compliance. It also offers additional time to consider other risks regarding cyber issues and how you can work with your Kibble & Prentice team to mitigate and transfer those risks. Other than the new deadline for compliance, the FTC's release, which can be found here, does not affect the substance of the article.

Updates to the Medicare Secondary Payer Statute

New Direct Data Entry Option for Liability Insurance (Including Self-Insurance), No-Fault Insurance and Workers’ Compensation. Full Details

Protecting Your Vacant Building: Reduce Risks and Become More Aware of Coverage Pitfalls

Commercial property owners face several problems due to the current economic downturn. The demand for commercial real estate of all types -- office, retail, apartment and industrial – is diminishing as businesses trim payrolls. People who lose their jobs may be forced into leaving their apartments. Retail chains see sales plummet as consumers cut spending and may be forced to close locations or even file for bankruptcy. In addition, continually rising available sublease space and a 19 percent decline in overall office leasing activity can be observed. All these factors contribute to climbing vacancy rates. Full Article (Note: article provided by Zurich)

Commercial General Liability Pollution Exclusion

Exclusion f. Pollution of the standard General Liability contract (CG 00 01 12 04) is the most lengthy and possibly the most complicated of all the 15 standard exclusions. This exclusion is frequently misunderstood by agents and brokers, underwriters, claim adjusters and contractors. Confusion about Exclusion f. Pollution could result in a contractor not understanding the true exposure of a situation. Full Article

Look Before You Leap: How Technology Companies can Anticipate and Reduce the Impact of Unexpected Overseas Events

Technology companies are generally quicker to take their operations global than companies in many other industries. Whether it's subcontracting with component suppliers in China or Ireland or hiring software programmers in India or Russia, technology companies are eager to tap into the cost benefits of using global supply chains and knowledge workers. Full Article (Note: article provided by Zurich)

No More COBRA Subsidy

The President recently signed into law legislation that will extend jobless benefits to Americans who are out of work (H.R. 4213).

While the legislation extends certain unemployment benefits, it does not provide an additional extension of the COBRA subsidy. Thus, the COBRA subsidy is no longer available to individuals who experience an involuntary termination of employment after May 31, 2010. Individuals who were involuntarily terminated on or before May 31, 2010 may continue to pay a reduced COBRA premium for up to 15 months, assuming they remain eligible for the subsidy (i.e. they are not eligible for other group health plan coverage or Medicare). Full Article

Final Interim Regulations Released on Preventive Care

As reported earlier, effective for the first plan year that begins on or after September 23, 2010, a group health plan and a health insurance carrier must (at a minimum) provide coverage for and must not impose any cost sharing requirements on preventive items and services. This requirement does not apply to grandfathered coverage. Full Article

Mental Health Parity and Addiction Equity Act: New FAQ Creates a Safe Harbor for Benefits Provided on an Outpatient Basis

The Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) is effective for plan years beginning after October 3, 2009. Among other things, MHPAEA requires that the financial requirements (e.g., deductibles, copays) and treatment limitations (e.g., office visit limits) imposed on mental health and substance use disorder (MH/SUD) benefits are no more restrictive than the predominant requirements or limitations that apply to substantially all medical/surgical benefits. Full Article

DOL Clarifies FMLA Definition of a "Son or Daughter"

The DOL issued an Interpretation on June 22, 2010, indicating that either day-to-day care or financial support (not both) may establish an in loco parentis relationship where the employee intends to assume the responsibilities of a parent with regard to a child. Full Article

The Departments Issue Further Guidance on Health Care Reform

The Depts. of the Treasury, Labor and Health and Human Services issued final interim regulations addressing many of the new consumer protections contained in the Patient Protection and Affordable Care Act (PPACA), including the restrictions on lifetime and annual limits on "essential benefits."

The regulations are effective August 27, 2010 and generally apply to plan years beginning on or after September 23, 2010 (unless otherwise noted in this summary). Full Article