Property & Casualty News June 2011

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.

AUTOMOBILE INSURANCE
Maryland enacted legislation pertaining to evidence of self-insurance for self-insured vehicles.     House Bill 125


CANCELLATION

Iowa amended personal lines cancellation requirements to apply to policies in effect for 60 days or more.  The requirements previously applied to policies in effect for more than 60 days.     515.129A


CAPTIVE INSURANCE COMPANIES

New Jersey issued a bulletin providing notification of the application process, guidelines, and other requirements for insurers seeking to form or redomesticate a captive insurance company in New Jersey.     Bulletin 11-08


CERTIFICATE OF AUTHORITY

New Mexico issued a bulletin reminding insurers of the requirement to promptly furnish requested documentation to expedite the certificate of authority application process.  The bulletin also provides information submission time limits that will be enforced.     Bulletin 2011-009

Puerto Rico issued a ruling requiring all licensed international insurers and reinsurers to renew their certificates of authority annually.     Ruling CIS-125-
2011


CERTIFICATES OF INSURANCE

Maryland enacted legislation concerning the proper use of Certificates of Insurance.  The legislation includes a provision regarding a study to be carried out by the Commissioner regarding the impact of requiring a certificate of insurance to be filed and approved before use.     House Bill 982


COMMERCIAL GENERAL LIABILITY INSURANCE

South Carolina enacted legislation pertaining to commercial general liability insurance policies.  The new law provides that certain commercial general liability policies must contain, or be deemed to contain, a specified definition of “occurrence”.     Senate Bill 431


CREDIT SCORING

Montana enacted legislation to include military service overseas as an extraordinary event to be considered for underwriting or rating exceptions with regard to credit reports.     House Bill 29


DISASTER AND EMERGENCY OPERATIONS

Missouri issued a bulletin to provide guidance to insurers in implementing procedures required as a result recent tornados and severe storms, and posted an FAQ document on the Department’s website.     Insurance Bulletin 11-03

North Dakota issued a bulletin providing guidance to all insurers on claims handling, premium payments, and underwriting issues.     Bulletin 2011-1


FILING REQUIREMENTS

Massachusetts issued a bulletin regarding filing requirements and procedures for private passenger automobile or homeowners insurance group marketing plans.     Bulletin B-2011-9

South Carolina posted a new filing requirements document on their website.  The document notes that SERFF filings are required effective 7-1-2011 and form SCID 2004 will not be required after that date, refers to tutorials on newly required SERFF data fields and updated actuarial exhibits, and provides additional filing guidance.  The document is on the South Carolina DOI website under Company Services, Rates, Rules and Forms Filings, New P&C Procedural Guidelines.     SC Property & Casualty Procedural Guidelines


FINANCIAL REGULATION

Idaho issued a bulletin providing guidance regarding the version of the NAIC's Accounting Practices and Procedures manual to be used by insurers when preparing the 2011 quarterly and annual financial statements.     Bulletin No. 11-02


FRAUD

Texas provided immunity for reporting insurance fraud for organizations primarily dedicated to the detection, investigation, and prosecution of fraud.     Senate Bill 918


GAP INSURANCE

California amended laws concerning guaranteed automobile protection (GAP) insurance.     Assembly Bill 125


GUARANTY ASSOCIATION

Michigan issued a bulletin regarding the Property and Casualty Guaranty Association’s annual adjustment of an insured’s maximum unearned premium refund.     Bulletin 2011-11-INS


HOMEOWNERS INSURANCE

Mississippi issued a bulletin concerning the use of GIS systems (such as ISO's LOCATION system) to determine or verify the location of a given property for insurance rating purposes.     Bulletin 2011-4


MEDICAL MALPRACTICE INSURANCE

Illinois issued a bulletin to advise insurers of the procedures and guidelines for implementing and administering schedule rating plans for medical professional liability coverage.  Starting in March 2012, the maximum permissible size of the total premium adjustments will be 25%.     Bulletin 2011-5
Virginia issued an Administrative Letter to describe situations where notice requirements are triggered because medical malpractice liability policy limit increases result premium increases greater than 25%.     Administrative Letter 2011-3


MISCELLANEOUS

Arizona issued a Regulatory Bulletin summarizing major, newly enacted legislation affecting the Department, its licensees, and insurance consumers.     Regulatory Bulletin 2011-4

Georgia enacted legislation providing that the Commissioner will determine if an insurer meets the definition of a reinsurer, to provide for the definition of a reinsurer and to provide for designation on the certificate of authority.     Senate Bill 252

Indiana made several changes to its Code related to an the insurer’s and producer’s obligation to assist a named insured with their questions concerning policy changes related to uninsured and underinsured motorist coverage, and related to termination of residential policies.     House Enrolled Act 1024

New York issued a General Counsel Opinion concerning self-storage facility insurance.     General Counsel Opinion 4-26-2011

New York issued a General Counsel Opinion regarding an insurer's requirement that a third-party claimant execute a release before the insurer will pay a settled claim.     General Counsel Opinion 4-21-2011


MORTGAGE GUARANTY INSURANCE

Texas enacted legislation relating to the amount of outstanding total liability of a mortgage guaranty insurer.     Senate Bill 416


PORTABLE ELECTRONICS INSURANCE

Kansas enacted the portable electronics insurance act.     Senate Bill 170

Nebraska amended its Code pertaining to Portable Electronics Insurance.     Legislative Bill 535


PREMIUM TAX

Kentucky issued an advisory opinion regarding local government premium tax compliance related to risk retention groups, captive insurers, and reinsurance companies.     Advisory Opinion 2011-3


PRODUCERS

Arizona issued a bulletin reminding insurance professionals that they may renew their license up to 90 days before expiration.     Bulletin 2011-03

Georgia amended its code to provide for the transition from an annual renewal to a biennial renewal of licenses and to provide for an adjustment of licensing fees to accommodate biennial licensing.     Senate Bill 251

Oklahoma enacted legislation modifying reexamination requirements, insurance producer license application requirements, license reinstatement requirements, educational requirements. It removes the provisional license requirement and certain provisional license fees and requires notification of email address changes.     House Bill 1243


RATE FILINGS - PERSONAL RISK INSURANCE

Tennessee amended its code pertaining to personal risk insurance.   Insurers may file certain rate increase or decrease filings to take effect on the date the change is filed, and provisions are included addressing rates later found to be inadequate, excessive, or unfairly discriminatory.     Senate Bill 777


SERVICE CONTRACTS

Oklahoma enacted legislation to create the "Oklahoma Home Service Contract Act".     Senate Bill 780


SURPLUS LINES

Maryland enacted legislation concerning surplus lines insurance.  Several sections of existing law were reenacted with amendments, and new provisions were added.     House Bill 959


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 form, rate 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.

John Palmer
816-391-2744
  John.Palmer@firstconsulting.com
 

Sheila Lawrence
816-391-2751
Sheila.Lawrence@firstconsulting.com
 


Back To Property & Casualty Newsletters