Property & 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.
Rhode Island passed legislation that rewrites the section of its statute dealing with licensing of public, company and independent claims adjusters. HB 7544
AGENT / PRODUCER CONTINUING EDUCATION
Oklahoma addressed continuing education regarding earthquake coverage in a recent bulletin. The OID is pursuing a legal change to require at least 1 hour of CE on this topic each renewal cycle. The bulletin advised that further details will be provided as they become available. Producer Bulletin 2014-01
AGENT / PRODUCER LICENSING AND APPOINTMENT
Arkansas will halt License Division processing effective October 10, 2014 while the Department converts to the NAIC's State Based System (SBS). The License Division will not be able to process any new applications, license renewals, agency affiliations, CE completion filings, appointments or appointment terminations from October 10, 2014 until October 20, 2014. The bulletin describes changes to how it will process agency appointments and how CE providers will submit course and instructor information. Bulletin No. 12-2014
Connecticut issued a bulletin regarding licensing requirements applicable to persons seeking to market or solicit insurance and handle claims for Risk Retention Groups or Risk Purchasing Groups. Bulletin L-21
Delaware amended the definition of "insurance identification card" to include a card in electronic format, as long as both the insured and the company consent. The update specifies that acceptable electronic formats include display on a cellular telephone or other portable electronic device. HB 258
New Hampshire exempted tractors with farm tractor registrations from motor vehicle liability requirements. HB 1546
Ohio amended its rule regarding financial responsibility ID cards to allow such cards to be printed on paper stock or plastic or delivered in electronic form. Rule 4501:1-2-02
North Carolina passed legislation that amends the statute concerning captive insurance companies. The legislation among other things amends the definition of a captive insurer to include special purpose captive insurers. HB 267
CERTIFICATES OF INSURANCE
Illinois enacted legislation regarding certificates of insurance issued in connection with a contract related to property, operations, or risks located in Illinois, regardless of the location of the policyholder, insurer, insurance producer, or person that requests or requires the issuance of the certificate of insurance. SB 2608
Wyoming issued a memorandum reminding insurers that a new section of the Wyoming Insurance Code, 26-13-125, prohibits any person from preparing, issuing or knowingly requesting the issuance of a certificate of insurance unless the form has been approved by the Department prior to use. Memorandum 01-2014
Virginia issued an order exempting commercial credit insurance forms from being filed prior to being issued. Order No. 11969
Connecticut issued a bulletin providing catastrophe preparation emergency contact and adjuster placard requirements. Bulletin IC-30
LEGAL EXPENSE INSURANCE
Missouri amended requirements concerning solicitation of memberships on behalf of a prepaid legal services plan to provide for certain disclosure to the consumer. SB 606
MARRIAGE EQUALITY / CIVIL UNIONS / DOMESTIC PARTNERS
New Hampshire amended its legislation to recognize any marriage of a same-sex couple lawfully contracted outside the state as of the date of its solemnization. SB 394
Oregon adopted a new regulation requiring any person or entity subject to regulation by the Department of Consumer and Business Services under the Insurance Code to consider a validly performed marriage of a same-sex couple valid. OAR 836-010-0150
Arizona issued a bulletin summarizing major insurance-related bills enacted in 2014. Bulletin 2014-04
California amended provisions concerning California Insurance Guarantee Association (CIGA) assessments. AB 2230
Connecticut enacted legislation changing property and casualty and surplus lines insurance laws to allow public adjusters to discuss first-party property claims on behalf of an insured with a carrier. In addition, carriers are allowed to offer flood coverage on a less than statewide basis under certain circumstances. HB 5502
Connecticut issued a Notice dated July 28, 2014 regarding DOI bulletins that are being renumbered or withdrawn. Important Notice Concerning Renumbering and Withdrawal of Insurance Commissioner Bulletins
Florida issued a memorandum to notify all Property and Casualty Insurers, Surplus Lines Insurers, and Surplus Lines Agents subject to the Florida Hurricane Catastrophe Fund (FHCF) Emergency Assessments of the termination of certain emergency assessments. Informational Memorandum OIR-14-04M
PERSONAL LINES INSURANCE
Connecticut issued new Homeowner’s Coastal guidelines effective October 1, 2014. As a result of Public Act No. 14-175, insurers are required to resubmit their homeowner's underwriting guidelines and manual rules for approval. Amended and Restated Filing Review Guidelines Related to Underwriting Coastal Homeowner's Insurance Policies are effective on and after October 1, 2014. The new guidelines are available on the Department's website. CT Important Notice dated 7-25-14
Missouri amended provisions concerning notice of cancellation for nonpayment of premium to require that such notices contain certain language in bold conspicuous type and to provide for reinstatement. Missouri added a new law concerning coverage for sinkhole loss under the Missouri Basic Property Insurance Inspection and Placement Program. SB 691
Rhode Island passed legislation concerning requirements that insurers provide insureds with 30 days' notice prior to renewal when coverage is reduced or eliminated or deductibles are increased when not requested by the insured. Specific requirements are provided concerning the title and content of the notice and how the notice is to be provided. HB
PROFESSIONAL LIABILITY INSURANCE
Alaska enacted legislation making an expression of apology, sympathy, commiseration, compassion, or benevolence by a health care provider inadmissible in a medical malpractice case and requiring a health care provider to advise a patient or the patient's legal representative to seek legal advice before making an agreement with the patient to correct an unanticipated outcome of medical treatment or care. HB 250
South Carolina issued a bulletin concerning implementation of the Competitive Insurance Act of 2014. The bulletin highlights some of the more significant changes and prescribes the form and manner of required notices and disclosures for applicants and policyholders. Bulletin 2014-08
REGULATORY REPORTING REQUIREMENTS
North Carolina issued a bulletin advising that insurers having direct premiums in the state of less than $1 million in any calendar year and less than 1,000 policy or certificate holders at the end of the calendar year are exempt from the annual financial reporting requirements for the year. Bulletin 14-B-8
North Carolina issued a bulletin regarding certain reporting requirements of the Annual Financial Reporting Law. It specifies deadlines for various reports coming due between October 1, 2014 and August 1, 2015, and provides additional information and hyperlinks. Bulletin 14-B-08
Washington Rule 2013-25 requires insurers to file financial statements electronically with the NAIC or the Insurance Commissioner. Rule 2013-25
Alaska published a list of eligible surplus lines insurers. The bulletin supersedes Bulletin B 14-01. Bulletin B 14-04
Arkansas issued a bulletin in response to recent requests from brokers for clarification regarding the eligibility of Underwriters at Lloyd's, London to write surplus lines business in the state. Bulletin 11-2014
UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE
Alaska enacted legislation to limit the maximum amount of uninsured and underinsured coverage payable under multiple motor vehicle insurance policies issued by the same insurer in the same household. SB 167
New Hampshire amended provisions which modify when coverage is available under uninsured motor vehicle coverage. HB 1353
California's Department of Industrial Relations and its Division of Workers’ Compensation posted a progress report on the department’s implementation of Senate Bill 863, the 2012 law which made changes to California’s workers’ compensation system. The progress report is posted on the DIR website. Notice dated July 17, 2014
New York issued a bulletin to advise that under Workers' Compensation Law § 21-a employers or their insurers can pay workers' compensation claims for lost wages to an injured employee on a temporary basis for up to one year without admitting liability and without giving up the ability to controvert the claim at a future date. WCL § 21-a cannot be utilized by an employer or carrier on claims that involve medical only. Bulletin WC 46-696
Product Development Help
Are your resources limited? Can you use some added expertise? If you are still trying to carve out time in your organization for someone to draft forms, think of First Consulting as a resource.
Some companies are still considering adopting ISO and AAIS forms and some are considering their own versions of these forms. If you are one of those companies or if you are working on program business, First Consulting can assist in the research and drafting of the forms. If you need to know the variances of existing forms to other forms, First Consulting has the experience to prepare detailed summaries to assist you in your decision making. We have the experience to draft forms for all lines of business.
No matter what your drafting or product filing need, we can help.
For more information about our product development/drafting services, please contact me, any First Consulting associate, or visit our website.
Do More With Your Budget in 2015
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How can First Consulting help you accomplish more in 2015?
We draft, review and file forms for all lines of business in all jurisdictions. We have the experience and knowledge to create forms, then draft state amendatory endorsements and complete all checklists.
We complete all the necessary certifications, transmittals and cover letters, then assemble and submit using SERFF.
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