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.
Rhode Island has broken their claim adjuster licenses into 3 separate categories: company adjuster, independent adjuster, and public adjuster. New licenses and all renewals after 1/1/2015 will require selection of one of the three categories, and only one of the three types can be held by a single adjuster. Bulletin 2014-8
Rhode Island revised the license and renewal fees for claims adjuster licenses. Fees have been updated and outdated references have been removed. Electronic filings through NIPR are also allowed. R27-103-001 Dated 11-07-2014
ADVERTISING/SALES & MARKETING
New York has enacted new requirements for disclosures in advertisements using senior specific designations (professional descriptions that indicate the person has senior level expertise or training). The new requirements details the "clear and prominent" display of the basis of such a designation. I - AB 1787
AGENT / PRODUCER LICENSING AND APPOINTMENT; FEES
Alabama is requiring the following entities to apply for license as a designated agent of the Department: automobile dealers, manufactured home dealers, financial institutions making mortgage loans, pawnshops licensed to enter into pawn transactions on motor vehicles, and insurance companies. 810-5-75-.52
Wisconsin reminds resident and non-resident producers that their 2015 annual initial and renewal appointment fee invoices will be mailed shortly after January 1, 2015 and payments must be submitted by Electronic Funds Transfer (EFT) on their website: oci.wi.gov. Bulletin dated December 8, 2014
Colorado made several revisions to their law regarding the Motorist Insurance Identification Database (MIIDB), specifically relating to the reporting requirements for insurance companies issuing vehicle insurance policies. The revisions are effective 1/14/2015. 1 CCR 204-10 Rule 7
Massachusetts has specified the documents required to be submitted along with private passenger motor vehicle rate/rule filings that apply to policies effective on or after 4/1/2015. Updated premium comparisons must be emailed to the Department by 5/15/2015. Guidance Notice 2014-B
Virginia has revised several forms relating to form filings for automobile insurance (policies, riders, etc). The new forms are approved for immediate use and will be the only forms available for use for policies effective on and after 4-1-15. Administrative Order No. 11972
Ohio has adopted new rules relating to captive insurance companies. These new requirements include license applications, fees, reporting and auditing requirements, and in addition allow for the Department to require additional capital and surplus. Rule 3901-11-01
Colorado published a bulletin to clarify the Division of Insurance position regarding consumers' rights when a dispute arises during the claim process. It provides guidelines to insurers, insureds and licensed public adjusters when a claimant invokes their rights under the appraisal clause found in most, if not all, property insurance policies. Bulletin B-5.26
Texas has authorized the Department to grant a 180-day extension to the one-year claim filing deadline on the Texas Windstorm Insurance Association (TWIA) consumer assistance and claims processes. An extension requires evidence of good cause. 28 TAC s 5.4200
CREDIT FOR REINSURANCE
Colorado revised their laws regarding certification and regulation of assuming reinsurers, based on the NAIC's model regulation. The revision removes language restricting scope of applicability to only domestic insurers. 3 CCR 702 Reg. 3-3-3 s 7
Massachusetts has revised their credit for reinsurance law by inserting a section that allows for credit when reinsurance is being ceded to a certified assuming insurer. This update is effective 4/2/2015. I - HB 4326
CROP HAIL INSURANCE
Minnesota issued its annual administrative bulletin to address issues for Crop-Hail carriers and remind them of requirements for the rate filing process. This year's bulletin further announces that it will remain in effect for future years until a new bulletin is issued. It supersedes Bulletin 2007-9 and all Crop-Hail bulletins previously released by the Department of Commerce, Insurance Division. Bulletin 2014-5
DISASTER / CATASTROPHIC EVENT
Connecticut published a bulletin to announce that the Insurance Department and Department of Emergency Services and Public Protection have developed a Catastrophe Adjuster Credential Access and Coordination Plan for activation during a disaster and to inform all Property and Casualty insurers of the process and procedures the Department expects them to follow in preparing for future catastrophes. Bulletin IC-36
District of Columbia will, following a 30-day period of review and publication, authorize the transmission of electronic notices and/or documents related to insurance. Consent of the recipient is required and can only be implemented under certain circumstances. I - B 673
Massachusetts has revised its requirements relating to confidentiality and handling of information and documents during financial examinations for insurance companies. I - HB 4324
Arizona raised the minimum amounts to qualify as an industrial insured. The increase is 10.2% and is effective 1/1/2015. Bulletin 2014-10
Hawaii requires that premium tax statements and payments be either entirely electronic or entirely manual. Statements cannot be electronic with a paper payment, and vice versa. For electronic monthly and annual tax statements/payments, either OPTins or TriTech systems can be used for the 2015 calendar year. Memorandum 2015-2E
Kentucky amended their Local Government Premium Tax Schedule and clarified the responsibilities of insurers and surplus lines brokers relative to payment of LGPT. Bulletin 2014-3
Texas has revised the tax rates and fees for gross premiums on several lines of insurance for the calendar year 2014. These taxes and fees are due 3/1/2015. 28 TAC s 1.414
PROFESSIONAL LIABILITY INSURANCE
Arizona enacted legislation providing for terminal patients' right to try investigational drugs, biological products or devices having successfully completed phase one clinical trials, but not yet approved for general use by the US Food and Drug Administration. Within this, statute 36-1313 prohibits action against physician or health care institution license based solely on a physician's recommendation to an eligible patient of such drug, product or device or the institution's participation in the treatment or use of such drug, product or device. HB 2005
New Hampshire has removed the quarterly reporting requirement for medical professional liability insurance. The reports are now annual and are due by August 1. Ins 3801.01
Maine has adopted a regulation regarding hurricane deductibles and the notice to insureds relating to those deductibles. The regulation is effective 4/1/2015. Insurance Rule Ch. 960 s 1
Delaware announced that the Department of Insurance now offers the public the ability to view insurance rate and form filings via the System for Electronic Rate and Form Filing (SERFF) interface, commonly referred to as SERFF Filing Access (SFA). Access is free and available through: www.delawareinsurance.gov/serff/. SERFF Announcement
SERVICE AND ADMINISTRATIVE FEES
California announced, effective March 1, 2015, a 10 percent increase in fees for all insurance producers, bail agents, insurance adjusters and insurers operating in the state. Bulletin No. 2014-6
New Jersey has issued a bulletin advising entities and individuals licensed under the Residential Mortgage Lending Act of key deadlines and procedures for renewal applications. Bulletin 14-13
Utah has implemented rules associated with escrow settlement practices. Included in these revisions is prohibition of "flip transactions". The new rules will be enforced beginning 1/22/2015. Rule R592-16-1
Tennessee has revised their requirements relating to medical panels and reimbursements relating to Workers' Compensation. 0800-2-1
STREAMLINED STATE FILINGS
Whether your 2015 plans call for increased state filing activity or not, partnering with First Consulting can save your office time and resources. Partnering with First Consulting will allow your office to work on other projects and priorities in helping your company meet and exceed your 2015 goals and objectives.
Filings can be made easy with our co-sourcing philosophy. Please click here for a brief overview of our filing service.
YOUR PRODUCT DRAFTING RESOURCE
Insurers work hard to keep their products relevant and in compliance. Insurance policies, certificates, riders, applications and other forms need regular review and revision to ensure they comply with changes in the law and regulations. Changing consumer needs lead to new products or new features in existing products. For over 45 years, First Consulting’s skilled staff has helped insurers with all of these drafting challenges.
First Consulting tailors its approach to your company’s drafting project based on your company’s specific needs. We can help with all or a portion of your project by:
- drafting generic product language;
- developing state variations in all or some states; or
- revising existing contracts to add new benefits or features.
Co-Sourcing with First Consulting allows you to maintain a role at whatever level is most appropriate for your specific company and project.
To learn more about Co-Sourcing click here.
Contact me for a no obligation proposal and cost estimate.