Property & 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.
Texas issued a bulletin concerning prohibited conduct of insurance adjusters, public insurance adjusters, and roofing contractors. Commissioner's Bulletin B-0014-14
AGENT / PRODUCER CONTINUING EDUCATION
Indiana published a bulletin adding an Ethics requirement for producer continuing education. Bulletin 207
Louisiana amended producer continuing education requirements to provide that the commissioner shall grant 24 continuing education credits to a licensed producer who is a member of the legislature while that person is serving a term in the legislature. House Bill 721
AGENT / PRODUCER LICENSING AND APPOINTMENT
Nebraska posted a notice entitled Producers’ Annual Appointment Renewal Process in 2014 stating that all appointment renewals must be filed electronically through NIPR between May 1 and July 31, 2014. Notice of April, 2014
West Virginia notified carriers that it would begin company appointment renewal processing for producers through the National Insurance Producer Registry (NIPR) on June 9, 2014. Notice 4-9-14
Wyoming posted on its website licensing changes that will affect renewals and new applications taken after June 30, 2014. Licensing What's New
Florida enacted a statute relating to arbitration. SB 1664
Louisiana enacted legislation to provide that when the named insured provides permission to an excluded driver to operate a vehicle, both the named insured and the excluded driver will be liable for any damages caused by the operator’s negligent or intentional acts. House Bill 9
New York issued a Circular Letter to alert insurers to the interest of the Department in receiving filings from insurers for products that use telematics devices, including usage-based insurance products, which provide salutary benefits to both consumers and insurers. Insurance Circular Letter No. 4 (2014)
Oklahoma created emergency rules regarding implementation of the Oklahoma Temporary Motorist Liability Plan, implemented when a law enforcement officer determines that a vehicle involved in the traffic stop is not in compliance with this state's Compulsory Insurance Law. 595:15-5-2
Rhode Island amended the Motor Vehicle Reparations Act to revise the definition of Proof of Financial Security. Such proof may now be produced in either paper or electronic format and may be displayed on any mobile electronic device. HB 7125
Rhode Island issued a bulletin concerning the implementation of the Rhode Island Insurance Verification System (RIIVS). The bulletin lists key concepts of RIIVS participation and provides deadlines by which insurers are to register on the RIIVS website, submit a test BOB file, and begin submitting monthly production BOB files to RIIVS. Insurance Bulletin 2014-3
Texas amended requirements concerning what information must appear on the standard proof of motor vehicle liability insurance form. 28 TAC s 5.204
Iowa amended its Code to provide that neither an insurance producer nor an insurer has a duty to change the beneficiary of an insurance policy or contract unless clear written evidence of the policy owner's intent to change a beneficiary is presented in a specified manner. House File 398
CANCELLATION/NON-RENEWAL/PREMIUM OR COVERAGE CHANGES
Georgia passed legislation that provides for insurance cancellations under certain circumstances. HB 375
Tennessee enacted legislation prohibiting insurers from increasing a premium or canceling a homeowner's insurance policy solely on the basis of an inquiry or inquiries by an insured regarding the insured's homeowner's insurance policy or a loss under the policy. Senate Bill 96
West Virginia clarified previously made informal interpretations concerning insurance claims and the required use of notice of necessary delay letters. Informational Letter 189
DISASTER / CATASTROPHIC EVENT
Arkansas announced a 60-day moratorium on cancellations and non-renewals for failure to pay premiums, available to policyholders affected by storms in late April. AR News Release 2014-5-9
North Carolina issued a bulletin advising the Governor has declared 4 counties a disaster area as a result of the 4/25/2014 tornados and severe storms. The Commissioner issued an order that activated the state of disaster automatic stay of proof of loss requirements, premium and debt referrals, and loss adjustments for separate windstorm policies for the four counties and their residents. Bulletin 14-B-5
North Carolina issued a bulletin to announce activation of the NCDOI Disaster Mediation Program as a result of the recent declaration of disaster for certain specified counties. The bulletin includes a "Right to Mediate" notice template. Bulletin 14-B-6
Arizona enacted legislation providing notice and consent requirements concerning electronic delivery of notices and documents to insureds. SB 1222
FILING REQUIREMENTS / PROCEDURES
Florida notified insurers and entities regulated by the Florida Office of Insurance Regulation of changes to the I-File System and reminded all users of the requirements regarding the filing of Trade Secret documents. Informational Memorandum OIR-14-02M
Louisiana provided an exemption for small companies from the requirement to prepare, implement, maintain, and file with the commissioner an insurance anti-fraud plan. SB 281
Maryland enacted, effective 10/1/2014, a new law to enable prosecution of insurance fraud under both civil and criminal actions in the county where the fraud occurred, where the policy provided coverage, where the insurer or agent was given a false statement, or where the claim was paid. SB 99
Illinois updated its Guaranty Association Notice to reflect the Association's new address. IAC 3401 Illustration A
Pennsylvania adopted changes to rules and procedural requirements for Insurance Holding Company Systems. 31 PA. CODE CH. 25.8 + and Forms
Oklahoma enacted legislation providing immunity from civil liability for certain actions during a natural disaster or catastrophic event. The legislation provides that any individual, business, church or school that renders emergency care, aid, shelter or other assistance will not be liable for damages resulting from the rendering of such assistance except under specified circumstances. HB 2338
Oklahoma established certain rebuttable presumptions for product liability actions brought against product manufacturers or sellers. Grounds for rebutting presumptions and circumstances for which a product liability action may be asserted are provided. HB 3365
California issued a Notice to inform admitted insurers, insurance producers, and other interested parties of California’s improper personal information disclosure and security breach notification requirements. Notice of May 16, 2014
Florida promulgated a rule requiring reports and standards of proof related to the "Holocaust Victims Assistance Act," established to ensure that potential and actual insurance claims, actual financial claims, and the assets and property of holocaust victims and their heirs be expeditiously identified and properly paid, compensated or returned. FAC Rule 69J-137.010
Georgia issued a Directive stating that, effective immediately, all carriers writing Homeowners, Private Passenger Automobile and Workers' Compensation insurance shall go to the department portal and upload correct rates, and also update rates each time a filing has been processed by the Department. Directive 14-EX-3
Kentucky issued a bulletin summarizing insurance legislation adopted by the 2014 Kentucky general assembly. Bulletin 2014-2
Louisiana adopted Regulation 66, Requirements for Officers, Directors and Trustees of Domestic Regulated Entities. Regulation 66 LAC 37 XIII. Chapter 51
Virginia summarized certain insurance-related statutes enacted or amended and re-enacted during the 2014 Session of the Virginia General Assembly. Administrative Letter 2014-4
West Virginia published Informational Letter 188 to summarize 2014 legislation significant to insurance companies. Informational Letter 188
NOTICE TO INSUREDS
Maryland amended its requirements concerning the manner in which certain insurers are required to deliver certain notices. SB 977
Minnesota enacted omnibus legislation addressing, in part: prohibition of surcharges on homeowners insurance solely as a result of a consumer inquiry; Model Holding Company Act changes; requirement of annual enterprise risk report filing; and addition of the Risk Assessment and Own Risk and Solvency Assessment Model Act. HF 2853
PERSONAL LINES INSURANCE
New Jersey adopted changes to requirements for Homeowners Insurance. Provisions regarding Renewal, Cancellation, and Nonrenewal, Orderly Withdrawal of Insurance Business, and Standard Hurricane Deductibles and Expedited Process for Homeowners Insurance Rate Changes were revised. N.J.A.C. 11:1-5.5, 20.1, and 22.1; and 11:2-29.2 and 42.2
Kentucky published the 2014-2015 Kentucky Local Government Premium Tax Schedule and Listing of Payees and Addresses. Revised Bulletin 2014-1 dated May 21, 2014 (revises Bulletin 2014-1, dated April 7, 2014)
PROFESSIONAL LIABILITY INSURANCE
Maryland requested that each medical professional liability insurer that offers medical professional liability policies provide certain information related to manual rates no later than 8-27-14. Bulletin 14-14
Ohio amended provisions concerning immunity of certain volunteer health care professionals. HB 232
REGULATORY REPORTING REQUIREMENTS
Idaho issued a bulletin to provide guidance regarding the version of the NAIC's Accounting Practices and Procedures Manual to be used by authorized insurers when preparing 2014 quarterly and annual financial statements. Bulletin No. 14-03
Pennsylvania published a notice to assist in a domestic insurer's review of state laws and regulations to identify required disclosures in financial statements and CPA audit reports. Notice Number 2014-05
Rhode Island published a bulletin concerning the 2014 Auto Body Labor Rate Survey. Insurers required to participate in the Survey are listed in the bulletin, and the bulletin advises that other insurers may either voluntarily conduct the survey and file a report with the Department or may adopt the prevailing labor rate of another insurer on file with the Department for calendar year 2013 and file its adopted rate as described in the bulletin. Insurance Bulletin Number 2014-4
Louisiana issued an advisory letter regarding eligibility for certification as a reinsurer. The letter includes a list of qualified jurisdictions from which reinsurers may apply for certification for the purpose of reducing required reinsurance collateral. Advisory Letter No. 14-02
SERVICE CONTRACTS / WARRANTY INSURANCE
Colorado enacted legislation concerning changes to the regulation of consumer goods service contracts. HB 1199
Utah issued a bulletin specifying requirements and procedures for an audit a surplus lines insurer elects to make on a surplus lines policy it issued. Bulletin 2014-5
Maryland revised its requirements pertaining to title insurance commitment, binders, and reserves. HB 679, HB 1082
Washington amended its rules pertaining to title insurance rates and adopted new rules concerning title insurance cancellation fees and statistical reporting. WAC 284-29A-010 +
Utah issued a bulletin to notify all licensees of the new definitions of "rebating", "commission compensation" and "fair market value" found in legislation passed during the 2014 General Session. The bulletin provides examples of fair market value non-compliance. Bulletin 2014-4
Colorado enacted legislation concerning the dissemination of travel insurance. HB 1185
UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE
Connecticut amended its Code concerning uninsured and underinsured motorist coverage offsets. The changes apply to automobile liability insurance policies issued or renewed on or after October 1, 2015. SB 280
Mississippi issued a bulletin to provide the Notice and Rejection of UM Coverage Form that may be used by insurers to comply with recent changes concerning the effective waiver of UM coverage. Bulletin 2014-4
Oklahoma amended its code concerning uninsured motorist coverage to provide that policies issued, renewed or reinstated after November 1, 2014, are not subject to stacking or aggregation of limits unless expressly provided for by an insurance carrier. SB 991
California amended requirements concerning the statutes of limitation for bringing certain workers' compensation death benefit claims. AB 1035
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Some of the research available includes the following:
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• P&C Signature Page Requirements
• Required Time Frame for Responding to Complaints
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Stretching your Resources – Monitoring TPA’s
Working with TPA’s brings on regulatory requirements that may stretch your compliance resources beyond full.
One of our On-Line Research Services – Third Party Administrator Licensing Service – answers questions you may have about TPA Licensing.
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What is a TPA?
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Where does a TPA need to be licensed?
What forms are needed for licensing?
What other requirements must be met?
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