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Property and Casualty News
We are celebrating over 25 years of providing selected items of current interest to our clients and friends. The items contained in this newsletter are derived from bulletins, regulations and legislative activity affecting the insurance industry. Please feel free to share this newsletter with others that may be interested. Contact our office for further details about any of the items contained in the newsletter.
Utah has amended its regulation regarding actuarial opinion and memorandum rule for property and casualty. Rule R590-162-3
Alabama has extended the due date for annual continuation of appointment fees paid by insurers. Fees are now due at the end of February rather than February 15. A late fee of $250 will be added to invoices not paid by March 1 and every subsequent month thereafter. 482-1-109-05
AGENT / PRODUCER LICENSING AND APPOINTMENT
Delaware enacted legislation requiring producers who declare Delaware to be his/her home state to provide a federal criminal history report from the Federal Bureau of Identification when applying for a resident license. The State Bureau of Identification will be the intermediary for such screening. Costs of obtaining the reports are to be borne by the applicant. SB 117
New Jersey updated its requirements requiring criminal history information to be provided by licensed producers and license applicants. NJAC 11:17-2.12
California has updated their requirements relating to certification of ignition interlock devices. The changes update federal regulatory cross reference. The changes are effective October 1, 2015. T. 13 s 125.02
Delaware has reiterated that disputes between auto insurers should be arbitrated by the appropriate arbitration committee rather than file subrogation cases in court. Administrative action will be taken by the Insurance Department if it is determined that an insurer has a pattern of disregarding this obligation. Domestic-Foreign Insurers Bulletin 77
District of Columbia has adopted rules relating to insurance for vehicles for public hire. The changes revise several definitions and set requirements for liability insurance. This emergency rule expires November 5, 2015. 31 DCMR 900
Louisiana has enacted an emergency measure relating to compulsory auto insurance. The measure will allow the Office of Motor Vehicles to have the most precise insurance information and for law enforcement to verify insurance information immediately on a license plate. The change is effective August 20, 2015 and expires December 18, 2015. Emergency LAC 55:III.1750
Maine initiated the Transportation Network Company Insurance Act that clarifies new regulations relating to TNC drivers, passengers, pedestrians, and drivers of other vehicles. The law outlines liability coverages while the driver is logged into the TNC's network and while a passenger is in their vehicle. Notice dated August 11, 2015
Rhode Island has amended its regulation regarding auto repair surveys. 27-29-4.4
Virginia has approved an Administrative Order to amend the Virginia Automobile Insurance Plan Manual of rules, classifications, territories, rates and additional charges to provide for writing insurance upon applicants assigned by the Virginia Automobile Insurance Plan. Administrative Order No. 11987 and Administrative Order No. 11988
Nebraska has issued a bulletin regarding information security programs, reminding insurers and producers of the mandatory safeguarding of customer information. Bulletin CB-134
CREDIT FOR REINSURANCE
Rhode Island has enacted regulations related to the Credit for Reinsurance Act. 27-1.1-9, 27.1.1-10
Vermont amended its regulation regarding credit for reinsurance. Regulation 97-3
Illinois provided the circumstances when a business entity may be issued a limited lines producer license for credit life, credit accident and health insurance and other credit insurance policies. House Bill 4015
South Carolina has issued a new bulletin regarding credit property Insurance. Bulletin 15-02
DATA CALLS / REGULATORY REPORTING
Georgia is requiring a data call for all insurers writing property and casualty coverage in Georgia in order to analyze property concentration, exposure, market share and potential financial impact related to unlikely weather events. Instructions and links are located within the directive. Data submission is due October 30, 2015. Directive 15-EX-4
DEPARTMENT OF INSURANCE
California published a notice to all admitted insurers and interested persons regarding corporate applications and similar filings requesting Department approval by the end of the year 2015. Applications must be submitted no later than September 11 except for holding company applications, which must be submitted no later than October 23, 2015. Notice 8-5-15
Rhode Island has expanded the scope of designated commercial special risks that are exempt from certain filing and approval requirements. 27-65-1
FILING REQUIREMENTS / PROCEDURES
Texas has issued a bulletin regarding new form and rate filings for property and casualty insurers providing coverage through a purchasing group. Bulletin B-0016-15
FILINGS: PROPERTY / CASUALTY
Alaska issued an order that exempts property and casualty insurers from submitting multiple filings when the same change is being made for multiple types of insurance. If previous orders conflict with this change, this order shall supersede the others. Forms and rates/rules must still be filed separately. Order R15-06
New Hampshire has amended its regulations regarding advisory organizations filings for property and casualty. Ins 2801.01 Dated 6-11-2015
Alabama has extended the time examinees have to refute a verified examination report. The previous timeframe was 20 days, it is now 30 days. The change was effective August 22, 2015. 482-1-103-04
Alabama has revised their regulations regarding holding companies to conform to the NAIC model law. The changes include the enterprise risk report and pre-acquisition notifications, among other regulations. The changes are effective January 1, 2016. 482-1-055
Delaware amended its code relating to insurance holding company system registration. HB 143
South Carolina has amended regulations related to insurance holding companies. R 69-14 Dated 09-26-2014
Wisconsin made changes and additions to Ins 40, effective September 1, 2015, relating to holding companies. Ins 40
Georgia implemented changes to its regulations relating to fireworks licensees. The change established new minimum coverage limits, and revised definitions and penalties. 120-3-16-.03
Virginia has amended its regulation regarding notices pertaining to motor vehicle or homeowners' insurance clarifying that insurers may send notices by a first-class mail tracking method or electronic delivery as specified. 38.2-231, 38.2-2113, 38.2-2208
California deleted the requirement that the application form clearly indicate the payroll deduction payment plan selected by the applicant for private passenger automobile insurance and specified residential property insurance. I - AB 1512, Ins s 396
Delaware rewrote its Code relating to Standard Nonforfeiture and Valuation for insurance, adopting standards from the National Association of Insurance Commissioners (NAIC). HB 76
PROFESSIONAL LIABILITY INSURANCE
Pennsylvania has amended its regulations regarding professional liability insurance for Pharmacy licensees. 49 s 27.1 Dated 05-04-2013, 49 s 27.311, 49 s 27.1, 49 s 27.312
Tennessee has issued an Interpretive Opinion regarding exemption for medical school liability self-insurance trusts. Interpretive Opinion No. 07-15
Tennessee has issued a bulletin regarding sinkhole coverage for residential properties. Bulletin dated August 12, 2015
District of Columbia has issued a ban on price optimization in rate filings. All insurers utilizing price optimization must submit a filing that complies with the ban by November 30, 2015 and an effective date by March 31, 2016. Bulletin 15-IB-06-8/15
Maine has issued a bulletin regarding price optimization and elasticity of demand. Bulletin 405
Washington issued an advisory warning property and casualty insurers about the practice of price optimization. Advisory T-2015-01
RISK RETENTION GROUPS
The Environmental Protection Agency has amended its regulation regarding insurance and risk retention group coverage. 40 CFR 280.97
SOLVENCY / FINANCIAL CONDITION
Rhode Island has amended its regulation regarding Voluntary Restructuring of Solvent Insurers. R27-68-002 Dated 01-13-2015
TITLE INSURANCE / AGENTS
Colorado revised the regulations relating to title insurance. Updates include: scope and purpose, definitions, effective dates, standards of conduct, and enforcement. Changes are effective October 1, 2015. 3 CCR 702 Reg. 3-5-1
Utah has amended its regulation regarding unfair inducements and marketing practices in obtaining Title Insurance business. Rule R592-6-2 Dated 05-29-2015
UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE
New Hampshire has amended its regulations regarding uninsured and hit-and-run motor vehicle coverage. 264:15
West Virginia has issued an informational letter regarding Excess/Umbrella Liability Policies. Informational Letter 194
Nevada has amended its regulation concerning eligibility requirements for consolidated insurance programs. Bulletin 15-004
New Hampshire has issued a notice regarding the maximum weekly Workers' Compensation rate. DOL Notice: June 2015
New Mexico has amended its Workers' Compensation and Occupational Disease disablement disability rates. WC Notice of Weekly Wage and Maximum
Vermont adopted new and amended rules regarding Workers' Compensation and Occupational Disease. Lab 94-1 Rule 1.0000
Vermont published Workers’ Compensation Assessment Fund rates effective 7-1-15. Workers Comp Assessment Fund
Virginia has updated the Virginia Workers' Compensation Commission Chronological Compensation Benefits Chart. WC Benefits Chart dated 07-01-2015
Washington has issued an emergency measure regulation regarding mandatory coverage requirements for Workers' Compensation insurance for drivers who own vehicles or lease a vehicle from others in the taxi, for hire, limousine, and cabulance industry. Emergency 296-17A-1401 Dated 07-24-2015
QUALITY PRODUCT DRAFTING AND FILING
Are you already facing 2016 marketing and product challenges?
You and your staff are also involved with other responsibilities. When it comes to those product drafting needs, our experienced staff can participate in any of these ways:
- Handle only selected jurisdictions
- Create initial draft of policies or state amendatory endorsements
- Review your initial drafts against state checklists, state requirements, our past experience and the NAIC Products Requirements Locator
- Rephrase to meet Readability requirements
Whether it is product drafting for your own program business for any line of business or endorsements to use with bureau form packages, we have the drafting and filing experience to help with all the various aspects.
Please click on the following link for a brief overview of our Product Development and Drafting service http://www.firstconsulting.com/services/product-development.
Feel free to contact me so we may discuss a practical approach to your drafting and filing needs.
COMPREHENSIVE ERM (ORSA) CONSULTING SERVICES FOR INSURANCE COMPANIES
First Consulting & Administration, Inc. offers a full range of consulting services to create or enhance your ERM/ORSA Compliance Program. The services are designed to be tailored to your company’s requirements. You can select from any or all of these services to give your Company just the right amount of assistance with its ORSA compliance strategy.
- Jumpstart or Enhance your Enterprise Risk Management (ERM) program with the ERM Starter and ERM Tool Kit.
- ERM/ORSA Program Assessment.
- ERM/ORSA Training & Educational Services.
- Comprehensive Consulting Services to create or enhance your ERM/ORSA Program.
Click here for more information.
Please contact me to discuss any of these services and learn how a strong ERM program even helps you comply with the Federal Sentencing Guidelines for Organizations, to help keep your CEO out of jail!
Carol Stern, FLMI, AIRC, ACS