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NEBRASKA INSURANCE DEPARTMENT REVERSES POSITION ON CONTINUATION OF NON-ACA COMPLIANT PLANS
Recently, the federal government announced that it would continue its "transitional policy" on the individual mandate under the Affordable Care Act (first announced on November 14, 2013), for an additional two plan years. And yesterday, the Nebraska Department of Insurance announced that it has reversed its November 22, 2013 decision not to allow any non-ACA compliant policy issued or renewed after January 1, 2014, to continue past its expiration date.
Based on several recent developments, the Department has determined that companies may offer to policyholders who held plans that were issued prior to January 1, 2014, the option to extend those health insurance plans through October 1, 2016. As before, all other plans issued after January 1, 2014 must be ACA compliant. Read the Insurance Department Bulletin.
CONSUMER ALERT ISSUED - HIDDEN RISKS OF CAR-SHARING AND RIDE-SHARING
The Nebraska Departments of Insurance and Motor Vehicles have issued an alert urging people to be cautious before signing up for services that connect drivers, riders and vehicle owners via the Internet and smartphone apps for car-sharing or ride-sharing. The Public Service Commission had previously warned companies such as Lyft and Uber not to offer rides for money without authority.
According to the Consumer Alert, these fee-based services may pose hidden risks if the rider, driver, or vehicle does not have insurance coverage for that activity. If an accident occurs while someone else is riding with you or driving your car, the typical private passenger automobile policies may not provide coverage for any liability incurred. Those who ride-share with passengers or own a car-share vehicle may need commercial coverage. Drivers who car-share may want to get their own "non-owned vehicle" policy if they drive other people's vehicles to be sure they are protected. Typically, a commercial automobile insurance policy is necessary to provide a vehicle for rent or to transport property or passengers for compensation. Read the full Consumer Alert, including consumer tips for evaluating exposure.
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