50.19—General disclosure requirements for State residual market insurance entities and State worker's compensation funds.
(a)
Policies in force on October 17,
2003, or renewed or issued on or before January
15, 2004. For policies in force on October 17,
2003, or renewed or issued on or before January
15, 2004, the disclosure required by section
103(b) of the Act as a condition for Federal
payment is waived for those State residual market
insurance entities and State workers' compensation
funds that since November 26, 2002, have not
provided disclosures to policyholders, until
January 15, 2004, after which disclosures are to
be made to policyholders for policies then in
force and subsequently issued.
(b)
Residual Market Mechanism
Disclosure. A State residual market insurance
entity or State workers' compensation fund may
provide the disclosures required by this subpart B
to policyholders using normal business practices,
including forms and methods of communication used
to communicate similar policyholder information to
policyholders. The disclosures may be made by the
State residual market insurance entity or State
workers' compensation fund itself, the individual
insurers that participate in the State residual
market insurance entity or a State workers'
compensation fund, or its servicing carriers. The
ultimate responsibility for ensuring that the
disclosure requirements have been met rests with
the insurer filing a claim under the
Program.
(c) Other requirements.
Except as
provided in this section, all other disclosure
requirements set out in this subpart B apply to
State residual insurance market entities and State
workers' compensation funds.
(d) Prior safe harbor superseded.
This section supersedes the disclosure safe harbor
provisions found at paragraph C.4 of the Interim
Guidance issued by Treasury in a notice published
on December 18, 2002, and published at 67 FR 78864
(December 26, 2002).