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.
Are you ready for TRIA 2015 Renewal?
Many entities and compliance professionals have now dealt with the drafting and filing needs related to the Terrorism Risk Insurance Program Reauthorization Act of 2015 signed by President Obama on January 12, 2015. There will be more activity in the upcoming weeks and months. First Consulting has set up a web page to keep you apprised of the various activities by the insurance regulators. You can access the information here.
AGENT / PRODUCER CONTINUING EDUCATION
Utah has revised its continuing education requirements for producers, consultants, adjusters, and navigator licensees. The revisions relate to the Department's review and approval of qualified CE programs, as well as online courses that do not have a live instructor. Rule R590-142-4
AGENT / PRODUCER LICENSING AND APPOINTMENT
South Carolina now requires licensure for sale of insurance for self-storage facilities. This applies to either coverage on contents of a storage unit or personal injury on the premises of the storage facility. Either the owner of the facility or an employee or agent must be licensed, and only the licensee can sell or offer to sell the insurance. The bulletin includes licensing procedures. Bulletin 15-01
Texas began issuing electronic licenses on January 16, 2015 for certain license types. Licensees can print their own licenses through either Compliance Express or Producer Edge. The Department will no longer mail paper licenses beginning on March 1, 2015. Bulletin B-0002-15
Michigan has approved revisions to fees related to automobile insurance, specifically registration fees and taxes. Changes will be effective no later than January 1, 2016. HB 4630
New York has revised the inspection requirements for private passenger automobiles as a part of underwriting. The changes are to remove or revise obsolete requirements due to newer technology, without undermining the effectiveness in prevention of fraud. 11 NYCRR 67.0
CERTIFICATES OF INSURANCE
Massachusetts has banned certain practices with regard to certificates of insurance (COIs). The intent of the bulletin is to eliminate unfair or deceptive COIs. SB 2402
Rhode Island has revised their requirements regarding claims adjuster licensing. There are now three categories of adjuster: company adjuster, independent adjuster, and public adjuster. All applicants will be required to select one of these types, and only a single license can be held by an individual at any one time. Bulletin 2014-8
COMMERCIAL LINES INSURANCE
Colorado has issued an emergency measure that revised licensing and renewal requirements for community association managers (CAMs). The revisions include licensing and renewal dates, inactive status requests, and requirements relating to E&O and fidelity coverage. It was effective January 6, 2015 and expires May 5, 2015. Emergency 4 CCR 725-7 D
DATA CALLS/REGULATORY REPORTING
Louisiana has established data reporting requirements for companies writing homeowners policies. The reports are due by 5/1/2015 and can be filed through the Departments industry access portal. Act No. 428
Virginia requires the submission of a Credit Insurance Experience Exhibit and Questionnaire by April 1, 2015. The questionnaire and exhibit can be found on the state's website.
Oklahoma has detailed the responsibilities of P&C insurers relating to disaster events and response preparedness. Reports are due on 03/01/2015, and the bulletin includes instructions. Bulletin No. PC 2014-03
Maine has clarified rules relating to hurricane deductibles, specifically the civil divisions and forecast zones used to determine the deductible. Insurers are asked to conform to the new rules by April 1, 2015. Bulletin 398
Maryland is requiring all insurers to submit company contact information in the case of a catastrophic event to the Department. The information must be submitted by the end of the day April 15, 2015. It can be submitted electronically through the Department's website or in hard copy. Bulletin 15-03
Texas has issued a bulletin clarifying the requirements regarding named drivers automobile insurance policy disclosures, both written and oral. The bulletin was effective January 28, 2015. 28 TAC s 5.208
Alaska issued an order exempting the separate filing requirement for insurers that desire to propose the same change for multiple types of insurance. The order was effective January 6, 2015 and will be in effect 180 days unless there is a regulatory change extending the exemption. Order R15-01
Virginia has adopted revised requirements for insurance holding companies. The revisions include acquisitions, notification of changes in officers, prevention of monopolies, and annual reporting requirements, among others. Effective January 1, 2015. 14 VAC 5-260-40
ORSA: OWN RISK AND SOLVENCY ASSESSMENT
New Jersey provided risk management and own risk and solvency assessment (ORSA) requirements that apply to domestic insures and insurers groups. I - AB 3271, 17:23-31
PERSONAL LINES INSURANCE
New York has adopted Regulation 202 that establishes rules for rates and placement of force-placed insurance. The regulation is intended to protect homeowners and investors and prohibit specific practices. 11 NYCRR 227.0
New Mexico Bulletin 2015-002 clarified the penalties for nonfulfillment of reporting and payment of premium taxes. Quarterly reports are due 4/15, 7/15, 10/15 and 1/15. Reports/payments must be received or post-marked by the due date. Bulletin 2015-002
PROFESSIONAL LIABILITY INSURANCE
Oklahoma published a bulletin updating its process for Medical Malpractice - 2014 Closed Claim Reporting, to be effective December 31, 2014. Reporting through SERFF will no longer be accepted. Online reporting is to be done through the OID website: http://www.ok.gov/oid Bulletin PC 2014-04
Alabama has instructed insurers to remove their Department of Insurance's contact information from required Outlines of Coverage and Comprehensive Policy Checklist. The Department instead wants consumers to contact the insurer, producer, or broker. Bulletin 2015-01
Maryland has requested comments from property and casualty insurers about proposed changes relating to data uniformity between states following a disaster. Comments will be accepted until February 23, 2015. Bulletin 15-04
Michigan has revised their requirements related to public records and the Freedom of Information Act. Included are fees charged for public records by public bodies, civil actions, and denial of requests. Effective date is July 1, 2015. HB 4001
Ohio has concluded that price optimization violates numerous state laws and causes unfairly discriminatory rates. Insurers currently using specific types of price optimization must comply with the bulletin via a SERFF filing by March 31, 2015. Bulletin 2015-01
Alaska has a new order regarding adoption of risk based capital instructions. Order R14-06
Colorado has established new requirements for registration of service contract providers. The new regulations are effective March 15, 2015. 3 CCR 702 Reg. 2-5-1
Alaska has increased the minimum qualifying amounts for three types of "exempt commercial purchasers". The changes are effective January 1, 2015. Bulletin B 15-01
Delaware has revised their requirements relating to reporting and taxes for surplus lines brokers. The bulletin includes information about transaction forms, tax due dates, and online tax submissions. Surplus Lines Bulletin 5
Pennsylvania has increased the minimum qualifying amounts for "exempt commercial purchasers" related to surplus lines. The changes were effective January 1, 2015. Notice of January 10, 2015
Puerto Rico has revised the procedures related to surplus lines insurance. There is a new version of form OCSR28©, which is used to track compliance. Ruling CN-2014-181-EX
Illinois has enacted a bill relating to travel insurance that allows individual employees of a licensed entity to act on behalf of the licensee. The change is effective June 1, 2015. I - SB 2979
Michigan has enacted new and revised sections relating to unclaimed property under the Uniform Unclaimed Property Act. The changes are effective March 31, 2015. I - HB 4703
Minnesota has issued a notice of withdrawal of Bulletin 2012-2, which provided exemptions from reporting requirements for Workers' Compensation Special Compensation Fund (SCF). All domestic and foreign workers' compensation carriers are now required to comply with the SCF reporting requirements. Bulletin 2015-1
Ohio has enacted regulations making personal information, including records and peer review proceedings, relating to injured workers confidential. The revision was effective January 9, 2015. Rule 4123-10-04
Texas has amended their regulation pertaining to examination assessments for domestic and foreign insurance companies and self-insurance groups providing workers' compensation insurance. 28 TAC §7.1001
REGISTER TODAY FOR OUR ANNUAL ADVERTISING SEMINAR!
Have you checked out the First Consulting Advertising Seminar lately?
Updates on social media and internet
Hands-on advertising workshop
Overview of Life and Health advertising law
Impact of new laws on your marketing
AUGUST 3-4, 2015 – KANSAS CITY MO – 8 HIGH-IMPACT SESSIONS – GREAT NETWORKING
As always, your attendees will bring home a reference notebook and many new contacts in the industry! Complete information and hotel.
C. J. Rathbun, FLMI, CCEP, HIA, AIRC
NAIC CORPORATE GOVERNANCE MODELS ON THE HORIZON FOR ADOPTION
Are you ready to respond to this new law and regulation? An annual corporate governance filing will be required, and the NAIC has made an affirmative decision not to exempt any type of company or fraternal organization from any of these corporate governance requirements. Here are some highlights of the changes:
Financial literacy is a requirement for each Board member, and the Board as a whole needs to possess what the NAIC calls “core competencies” of accounting or finance, business judgment, industry knowledge, management, leadership, vision and strategy.
Regulators will be looking for Corporate Governance Guidelines that document established key governance principles.
Regulators want to understand the frequency at which information on each critical risk area is reported to and reviewed by senior management and the Board.
For more information on the Corporate Governance Tool Kit: http://www.firstconsulting.com/services/corporate-governance-tool-kit
Contact me for a demo of the Corporate Governance Tool Kit and let’s talk about how we might assist you with these new requirements.
Carol Stern, FLMI, AIRC, ACS