Property & Casualty News August 2011

First Consulting is pleased to provide this brief review of selected items that may be of current interest to clients and friends.  Please feel free to copy it for distribution to your staff.  Contact us for more details about any item.  We welcome your comments and suggestions on this letter.  To contact us call 800-927-2730 or email us at Inquiry@firstconsulting.com
 


AUTOMOBILE INSURANCE

Colorado adopted changes to regulations regarding disclosure requirements for private passenger automobile policies and amended summary disclosure form language.     3 CCR 702 Reg. 5-2-16

Maryland issued a bulletin to remind insurers that a PIP surcharge is prohibited.  The bulletin states that an insurer that issues a policy containing PIP coverage may not impose a surcharge or retier the policy for a claim or payment made under that coverage.  At the time the policy is issued, insurers shall notify the policyholder in writing that a surcharge may not be imposed and the policy may not be retiered for a claim or payment made under PIP coverage.   The bulletin also provides examples of rating rule language.     Bulletin 11-16

Massachusetts issued a bulletin to provide guidance to insurance companies regarding upcoming changes in required claims valuation provisions in motor vehicle insurance policies.     Bulletin 2011-14

Michigan enacted legislation to amend its laws pertaining to automobile insurance policy certificates of insurance, motor vehicle registration and proof of insurance.     Senate Bill No. 441; Senate Bill No. 442

Oregon enacted legislation regarding motor vehicle insurance pertaining to a personal vehicle sharing program.     House Bill 3149

Pennsylvania issued a notice regarding the annual data call applicable to companies licensed to write motor vehicle insurance.     Notice 7-22-2011

Texas issued a bulletin to advise insurers regarding the offer of bodily injury and property damage uninsured/underinsured motorist coverage.  The bulletin notes that insurers may not require the purchase of one coverage in order to obtain the other.  The bulletin also includes requirements for Insurers’ UM/UIM selection/rejection forms.     Commissioner's Bulletin #B-0032-11

CERTIFICATES OF INSURANCE
Missouri enacted legislation pertaining to certificates of insurance.  The legislation includes filing requirements, suggested language for a statement to be included on each certificate of insurance, and other provisions regarding certificates of insurance.     House Bill No. 407

Texas enacted legislation pertaining to the use of Certificates of Insurance and including filing requirements applicable to such documents.     Senate Bill 425

CREDIT SCORING
Nevada issued a bulletin advising that effective 10-1-2011, insurers are required to provide reasonable exceptions in their rates, rating classifications, tier placement and underwriting rules and guidelines for certain extraordinary life circumstances of an applicant or policyholder.  An applicant or policyholder whose credit information has been directly influenced by these extraordinary life circumstances may request in writing that his or her credit information not be considered in the underwriting and rating of the policy.  Insurers must provide a notice to their applicants and policyholders explaining that reasonable exceptions are available and how they may request further information about applying for an exception.   The bulletin notes that personal lines insurers that use credit information in underwriting or rating must submit a filing for review and approval by the Commissioner on or before 9-15-2011, and provides a procedure for requesting an extension to that deadline.     Bulletin 11-005

DISASTER OR CATASTROPHIC EVENT
Iowa issued a memorandum addressing questions and providing answers regarding Bulletins 11-02 and 11-03 on the treatment of policies and policyholders affected by declared natural disasters.     Memorandum Dated July 11, 2011, Memorandum Dated July 18, 2011

FILING REQUIREMENTS
Hawaii amended its Code to change the filing deemed from 30 days to 60 days.     431:2-202.5

MISCELLANEOUS
Alaska issued a bulletin summarizing recent changes made to Alaska insurance laws.     Bulletin 2011-7

Connecticut amended requirements concerning a commercial risk insurer's obligation to provide reports of premium, loss and other information when requested by an insured.  An insurer must furnish an insured with written reports no later than 30 days (previously 'within 60 days') after receipt of a written request from the insured first named in the policy or the insured's authorized producer.     House Bill No. 6508

Georgia issued a bulletin regarding the use of credit cards to pay insurance premiums.     Bulletin 11-EX-2

Maryland issued a bulletin to advise insurers about the required format for electronic submissions of the Report on Slavery Era Insurance and to provide a reminder of the 10-1-2011 due date.     Bulletin 11-15

Missouri enacted legislation concerning several topics including motor vehicle extended service contracts, portable electronics insurance and surplus lines insurance.     Senate Bill 132

Rhode Island enacted and amended laws pertaining to premium and coverage change policyholder notices, and to an insured's right to loss information.     House Bill 5465

West Virginia issued an Informational Letter summarizing significant legislation enacted during the 2011 Regular Session of the Legislature.     Informational Letter 179

Wisconsin published the Summer 2011 edition of the Wisconsin Insurance News.  It is available on the Office of the Commissioner of Insurance's Web site.     Wisconsin Insurance News Issue 2 Summer 2011

POLICYHOLDER NOTICES
Maryland issued a bulletin to remind insurers of the requirement to send a written notice of a premium increase to insureds at least 45 days prior to the effective date of a premium increase.  The bulletin notes that a premium increase includes a surcharge, a retiering or reclassification of an insured, or the removal or reduction of a discount, and describes what must be included in the notice.     Bulletin 11-17

PRIVACY NOTICES
Virginia issued an administrative letter regarding privacy notice compliance.     Administrative Letter 2011-06

PRODUCERS
Illinois approved changes to its code to allow certain webinars to be used to satisfy course study requirements for insurance producer licensing.     House Bill 1287

Louisiana updated its requirements for education, continuing education and prelicensing requirements for producers.     Regulation 9, Regulation 10

Oklahoma amended various rules regarding producer licensing requirements, licensing applications and continuing education.     Rule 365:25-3-1+, Rule 365:1-9-11+

RENEWAL REQUIREMENTS
Texas enacted legislation to amend provisions pertaining to the requirements for notice of coverage reduction on renewal of a property and casualty insurance policy.     House Bill No. 2655

REPORTING REQUIREMENTS
Rhode Island amended reporting requirements pertaining to assigned risk automobile insurance, and repealed certain reporting requirements pertaining to liquor liability, workers' compensation and automobile insurance.     House Bill 5772

SURPLUS LINES
Arizona issued a bulletin regarding implementation of the Federal Nonadmitted and Reinsurance Reform Act.     Regulatory Bulletin 2011- 061

California enacted changes to its laws and code to revise and recast the provisions governing surplus line brokers and nonadmitted insurers to make them consistent with the Federal Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.     AB 315

Connecticut issued a bulletin regarding implementation of the Federal Nonadmitted and Reinsurance Reform Act.     Bulletin SL-2

Florida issued a bulletin regarding nationwide regulatory changes that will affect the placement of nonadmitted insurance.     Bulletin 2011-2

Illinois issued a bulletin to outline nationwide regulatory changes that will affect implementation of the Federal Nonadmitted and Reinsurance Reform Act.     Company Bulletin 2011-09

Louisiana issued a bulletin to outline the effect of the Federal Nonadmitted and Reinsurance Reform Act of 2010 on surplus lines or nonadmitted insurance in the state.     Bulletin No. 2011-01

Mississippi issued a bulletin regarding the Nonadmitted Insurance Multistate Agreement.     Bulletin 2011-8

Missouri issued a bulletin regarding implementation of the Federal Nonadmitted and Reinsurance Reform Act.     Bulletin 2011-05

New Jersey issued a bulletin regarding implementation of the Federal Nonadmitted and Reinsurance Reform Act.     Bulletin 2011-11

New York issued a bulletin regarding amendments to the New York Insurance Law to Conform to the Federal Nonadmitted and Reinsurance Reform Act of 2010 and to provide guidance and clarification to all insurers eligible to write excess line insurance.     Circular Letter No. 9 (2011)

North Carolina issued a bulletin to outline national regulatory changes that will affect the placement of nonadmitted insurance.     Bulletin 11-B-7

Oregon issued a bulletin regarding implementation of the Federal Nonadmitted and Reinsurance Reform Act.     Bulletin 2011-1

Vermont issued a bulletin to outline nationwide regulatory changes that will affect the placement of nonadmitted insurance.     Bulletin 163

TITLE INSURANCE
Washington adopted a rule to amend WAC 284-29A-030 to postpone by one year the date upon which title insurers must file their rates under RCW 48.29.147 and when rate filings must be made under RCW 48.29.147 rather than RCW 48.29.140.     WAC 284-29A-030

WORKERS COMPENSATION
Colorado issued a bulletin to provide guidelines for insurers regarding the assessment of surcharges on employers who fail to participate or cooperate in a premium audit.     Bulletin No. B-5.30

Pennsylvania approved changes to the Workers' Compensation Act.  Included is a provision authorizing insurers to provide on a voluntary basis to sole proprietors, partners of a partnership, or members of a limited liability company, workers' compensation insurance equivalent to that which employers provide to employees.     House Bill No. 440


Co-Sourcing - Unique Solutions to Unique Compliance Needs

First Consulting & Administration, Inc. assists clients with their unique regulatory and compliance problems by Co-Sourcing with unique solutions.

Co-Sourcing with First Consulting means you always remain in control.  You determine how and when your project will be handled, and you decide exactly what aspects of your project you want us to handle.  We are serious about meeting the unique needs and requirements of each client and each project. 

Contact John Palmer or any First Consulting associate to discover how Co-Sourcing can benefit you. 

For more information about Co-Sourcing, click here.  

 John B. Palmer
First Consulting & Administration, Inc.
1020 Central, Suite 201, Kansas City, Missouri 64105
800-927-2730, ext. 2744 or 816-391-2744

john.palmer@firstconsulting.com
 


Let Us Help You Enter The
Excepted Benefits Market

Many carriers are expanding into the Excepted Benefits Market, including products such as Accident Only, Critical Illness, Dental/Vision and others.  First Consulting can help you with this endeavor. 

Because we Co-Source, we can supplement your existing Product Development resources in any or all of the following: 

  • Experienced Drafting & Filing
  • Customized Research
  • Group and Individual Expertise

Contact Jerry Wickersham, or any First Consulting associate, for more information about how First Consulting & Administration, Inc. can help your company. 

Jerry L. Wickersham
First Consulting & Administration, Inc.
1020 Central, Suite 201, Kansas City, Missouri 64105
800-927-2730, ext. 2743 or 816-391-2743
jerry.wickersham@firstconsulting.com