Property & Casualty News February 2012

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


APPLICATION FILING REQUIREMENTS

Montana issued an Advisory Memorandum regarding filing requirements for electronic and telephonic application forms. The memorandum provides the following instructions. Prior to May 9, 2012, insurers are required to file all electronic and telephonic application forms, including any currently in use. Electronic and telephonic applications previously in use and submitted for review and approval prior to May 9, 2012, may continue to be used unless insurers are told otherwise. Forms not submitted for review and approval prior to May 9, 2012, may not be used. Advisory Memorandum dated January 9, 2012


AUTOMOBILE INSURANCE

Arizona issued a bulletin regarding the 2012 revision of the private passenger automobile property damage threshold amount insurers may use to nonrenew policies providing this coverage. Regulatory Bulletin 2012-1

Florida repealed rules concerning (1) Unfair Discrimination in Private Passenger Motor Vehicle Insurance Rates - Allocation of Administrative Expenses; (2) Unfair Discrimination in Private Passenger Motor Vehicle Insurance Rates - Based on History of Accidents; and (3) Unfair Discrimination in Private Passenger Motor Vehicle Insurance - Based on Age. Repeal of Rules FAC 69B-175.006, .008, .010

Maryland amended regulations concerning the control and operation of taxicabs in certain cities and counties. Changes include increased liability insurance and bond requirements, revised cancellation requirements, and amended language to refer to the driver, as well as the owner. COMAR 20.90.02.19 and COMAR 20.90.03.17


CAPTIVE INSURERS

Colorado amended regulations concerning the formation and operation of captive insurance companies. 3 CCR 702 Reg. 2-3-1


DISASTER AND EMERGENCY OPERATIONS

Maryland issued a bulletin to all insurers requiring that disaster/catastrophic event contact information be provided to the department by April 16, 2012. Bulletin 12-01


FILING REQUIREMENTS

Alabama issued a bulletin addressing the manner in which losses experienced as a result of the tornado outbreak in April, 2011 (PCS Cat #46), must be handled in the submission of property and auto rate filings. Bulletin 2012-02


FINANCIAL REGULATION

Connecticut issued a bulletin regarding 2011 annual statement requirements. Bulletin FS-4-2011


MISCELLANEOUS

California issued a bulletin on increases to cost recovery rates for filing or approval of policy forms and other documents. Bulletin 2011-4

Colorado repealed its rule requiring that every insurer who applies for an initial certificate of authority maintain offices in the state and amended a regulation concerning issuance of a certificate of authority. Repeal of Rule 1-1-4, 3 Amended Regulation CCR 702 Reg. 2-1-7

Rhode Island issued a bulletin regarding public access to rate and policy form filings. The bulletin advises that there is one SERFF terminal available for public access and specifies that an appointment must be made to use that terminal. Bulletin 2008-7 (Amended)

Texas adjusted its law on the rates of assessment for maintenance taxes and fees for 2012 on the basis of gross premium receipts for calendar year 2011. Rule 28 TAC 1.414


POLICYHOLDER NOTICES

Tennessee issued a bulletin regarding electronic policyholder notifications. The bulletin provides that policyholders are to be given the option to receive hard copy mailings of notices or other communication, and notes that insurers are to make a disclosure to any policyholder electing to receive communications electronically, either in the language of the policy itself or in a separate disclosure form presented for the policyholder's signature. This disclosure must contain language included in the bulletin. Bulletin 1-26-12


PRODUCERS

Alabama issued a bulletin regarding use of temporary producer licenses. Effective March 1, 2012, insurers using temporary licenses must have a prospective temporary licensee sign a disclosure (included with the bulletin) before application is made for the license. Bulletin 2012-01

Kentucky issued an Advisory Opinion concerning insurer collection of commission payments and describes certain practices that are contrary to Kentucky law and public policy. Advisory Opinion 2012-01

North Carolina issued a memorandum regarding 2012-2013 appointment renewals advising that the appointment renewal bill is now ready to pay on-line at www.nipr.com for companies with active North Carolina appointments. Payment is due by April 1, 2012. The memorandum also advises that Department has posted special instructions for payment and FAQ's on the Department's website. Memorandum dated 2-1-2012


RISK-BASED CAPITAL

Alaska issued an order regarding the adoption of risk based capital instructions. Order R 11-06


SURPLUS LINES

Colorado amended regulations to conform with the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA). 3 CCR 702 Reg. 2-4-1


SURPLUS LINES - EXPORT LIST

California issued a bulletin to advise that the Department held a public hearing and comment period regarding the annual renewal of the export list as required by statute and no new items were added to the list. The bulletin reminds insurers that risks and coverages not appearing on this list may still be exportable but subject to full documentation of the diligent search being performed. Bulletin 2012-1


UNCLAIMED FUNDS

Ohio amended provisions related to unclaimed funds, which includes among other things, definitions, examination of accounts and the authority to present claims. Rule 1301:10-1-01


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However, completing this research can be time consuming, and finding staff free to do the work is often a challenge. First Consulting’s experienced staff can alleviate this burden, providing and maintaining the compliance research you need, to your specifications. Research will be tailored to the states and product lines with which you are concerned. If calls need to be made to regulators for clarification regarding a particular issue, First Consulting can make those calls on your behalf, confidentially.

Contact Stacy Koron to discuss your research needs or click here for more information about our custom research services.


Co-Sourcing

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