Property & Casualty News February 2011
The following is a brief review of selected items that may be of current interest to First Consulting & Administration, Inc. 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. Please call our office.
Massachusetts issued a bulletin to inform insurance companies issuing private passenger motor vehicle insurance policies of a Pay-As-You-Drive Automobile Insurance Pilot Project. Bulletin 1-21-2011
New Jersey enacted legislation concerning recovery of personal injury protection benefits under certain circumstances. Senate Bill No. 191
AUTOMOBILE INSURANCE - REPORTING REQUIREMENTS
Massachusetts issued a bulletin directed to insurance companies, surety companies and insurance company groups issuing motor vehicle insurance policies In Massachusetts. The bulletin amends the filing procedure and format for the submission to the Division of Insurance of evidences of authorization to sign motor vehicle registration certificates. Bulletin B-2011-2
CERTIFICATES OF INSURANCE
Arizona issued a bulletin to address the prohibited practice of misrepresenting insurance coverage when insurers or insurance producers issue certificates of insurance. Regulatory Bulletin 2011-1
Georgia issued an executive directive regarding the improper use of certificates of insurance and asks each insurer to provide all individuals authorized to issue certificates with clear procedures regarding their authority to issue certificates of insurance. The procedures are to be made available to the Georgia Department upon request Directive 11-EX-2
New Mexico issued a bulletin providing guidelines for the use of certificates of insurance. The bulletin also notes that New Mexico Code mandates that insurers file and obtain approval of all insurance policy forms, including certificates of insurance and/or evidences of insurance. The bulletin directs insurers to inform their personnel and agents of the requirements. Bulletin 2011-001
Colorado issued a bulletin to provide guidance to insurers of property destroyed by the September 2010 Boulder County fire, Fourmile Canyon Fire. Bulletin B.5.28
Texas issued a bulletin informing stipulated premium companies of the new risk based capital and minimum capital and surplus requirements that must be met to comply with Texas law. Bulletin #B-0005-11
Maryland issued a bulletin describing the emergency contact information that insurers must provide to the Maryland Insurance Administration by 4-15-2011. Bulletin 2011-2
Michigan issued a bulletin regarding the Michigan Property and Casualty Guaranty Association’s annual adjustment of the net worth limit and claim cap. Bulletin 2011-03-INS
Oregon has posted revised product standards for service contracts and vehicle protection products. Source: E-notification distributed to "Rates and Forms New Developments" distribution list
Oregon has published the Winter 2011 edition of the "Oregon Insurance Regulator" on their website under Publications. Oregon Insurance Regulator newsletter
Pennsylvania issued an updated list of reinsurers not licensed by the Insurance Department which shall be considered qualified to accept reinsurance from insurers licensed by the Department. Notice 1-22-2011
Puerto Rico issued a ruling letter regarding catastrophe reserve requirements applicable to domestic insurers. Ruling letter 2011-121-EX
California added to the list of records that agents, brokers, surplus lines brokers or special lines’ surplus lines brokers must maintain for at least five years after expiration or cancellation of the policy to which the records pertain. Effective 6-27-11, they will be required to maintain documentation specified in Section 2695.182 or subdivision (i) of Section 2695.183 pertaining to estimates of replacement value and replacement cost on homeowner's insurance. 10 CCR § 2190.2 and 2190.3
Michigan issued a bulletin regarding the use of the words "insurance" and "agency" in a corporate insurance agency names. Corporate insurance agencies may now use the word "insurance" without the word "agency" provided it is clear that the agency is not an insurance or surety company. Bulletin 2011-01-INS
North Carolina issued a memorandum regarding payment of 2011-2012 appointment renewals. Memorandum 1-31-2011
Pennsylvania adopted changes to training and education requirements for producers who sell federal flood insurance policies. 31 PA. CODE CHS. 39 AND 39a
Tennessee added a provision regarding a continuing education course related to flood insurance. 0780-1-56-.08
Washington adopted a new rule to establish electronic licensing as the exclusive process for licensing transactions relating to certain licenses issued by the Office of the Insurance Commissioner. Insurance Commissioner Matter No. R 2010-07
PROPERTY INSURANCE - COMMERCIAL
Massachusetts amended 175:99 to permit certain exclusions of coverage for loss by fire or other perils insured against if the fire or other perils insured against were caused by terrorism. House Bill 960
Delaware issued a bulletin to insurers providing automobile insurance in the state. The bulletin provides a list of companies that must complete the 2010 Auto Rate Survey and a link to instructions for survey completion. Auto Bulletin 18
Massachusetts has enacted new laws concerning home service contracts and repealed previous laws regarding home warranty contracts. House Bill No. 4957
New Mexico amended and adopted rules pertaining to approval of title insurance rates that are lower than the promulgated rate. 18.104.22.168 NMAC and 22.214.171.124 NMAC +
First Consulting & Administration, Inc.
Specialists in meeting Regulatory and Compliance
needs of Insurers
First Consulting knows how important it is for insurers to complete regulatory and compliance functions effectively and efficiently. We have assisted our clients with their product forms, rates and rules filings, regulatory research, and other compliance related tasks since 1969.
With CO-SOURCING, you decide exactly what aspects of your project you want us to handle. No matter how large or small our role, we pride ourselves on meeting your specific needs with our expertise and knowledge.
Call John Palmer, Sheila Lawrence, or any First Consulting associate for more information. Visit our website at www.firstconsulting.com.
The Outside View of Your
Operational Compliance Program
With the First Consulting in your camp, your company can meet internal and external standards more efficiently. We can help you
1. Identify key risks in your regulatory and internal compliance;
2. Strengthen policies and procedures that are highest on the risk scale; and
3. Design monitoring safeguards for ongoing effectiveness.
Learn more by calling C. J. Rathbun,
at 816-391-2730 (800-927-2730 X 2740)
or email her at email@example.com.