Property & Casualty News March 2011

The following is a brief review of selected items that may be of current interest to First Consulting & Administration, Inc. 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.  Please call our office.


AUTOMOBILE INSURANCE
Arizona issued a bulletin regarding the 2011 revision of Private Passenger Automobile Property Damage threshold amount of property damages insurers may use when non-renewing private passenger automobile policies.     Bulletin 2011-02

North Dakota issued a memorandum to provide insurers with the current contact information for the North Dakota Automobile Insurance Plan.     Memorandum 2-28-11

South Dakota enacted new legislation to clarify the definition of motor vehicle for the purpose of supplemental automobile liability insurance.     House Bill 1058

Virginia issued an administrative order announcing elimination of the requirement that certain Virginia Commercial Auto declarations be used.     Administrative Order No. 11884

Wyoming amended the definitions of "school bus" and "off-road recreational vehicle".     W.S. 31-1-101


CANCELLATION
New York issued an Office of General Counsel opinion regarding cancellation of a business owners Insurance policy due to change in occupancy.     OGC Opinion No. 11-01-02


CERTIFICATES OF INSURANCE
New Jersey issued a bulletin regarding the proper use of certificates of insurance.  The bulletin urges all insurers to review their oversight procedures regarding certificates of insurance in order to avoid misrepresentations of the terms and conditions of their policies, and to remind their producers about the consequences of providing improper certificates.     Bulletin 2011-4


CIVIL UNION
Illinois enacted the Religious Freedom Protection and Civil Union Act, which defines civil union and provides persons entering into a civil union with the obligations, responsibilities, protections, and benefits afforded or recognized by the law of Illinois to spouses.     Senate Bill 1716


DISASTER PLANNING
New York issued a circular letter regarding disaster planning, preparedness and response.  The Letter provides guidelines, procedures and requirements for insurers before, during and after disasters occur.     Circular Letter 2011-1


FILING REQUIREMENTS
Virginia issued an order regarding the suspension of filing requirements for certain classifications of Commercial General Liability insurance.     Insurance Order No. 11888


FRAUD PREVENTION PLANS
New Jersey issued a bulletin to remind all insurers who write private passenger automobile insurance that all such insurers are to prepare and file with the Department of Banking and Insurance on or before March 31 of each calendar year, an annual report of the prior calendar year's results from their plan for the prevention and detection of fraudulent insurance applications and claims.     Bulletin 2011-2


HOMEOWNERS' INSURANCE
Pennsylvania issued a notice announcing that the Insurance Department received from the FAIR Plan a filing to introduce a Dwelling Property 2–Broad Form.  The form will enable the residual market consumer to secure coverage for winter weather exposures.     Notice 2-26-2011 (#1)


MEDICAL MALPRACTICE INSURANCE
New Jersey amended and readopted rules designed to implement and further the New Jersey Medical Care Access and Responsibility and Patients First Act.  Among other things, the rules amend requirements for medical malpractice liability insurance rate filings.     NJAC 11:27-14.1+


Pennsylvania issued a notice regarding a Data Call applicable to Medical Malpractice insurance carriers having positive Direct Premiums Written for 2009.   The Data Call cover letter, exhibits and templates are available on the Department's web site, and the Department has identified the insurers to which the Data Call applies in Exhibit 2.  The filing is to be submitted by 4-1-2011.     Notice 2-26-2011 (#2)


MISCELLANEOUS
Arkansas issued a bulletin notifying insurers of the required use of the NAIC Accounting Practices and Procedures Manual for the December 31, 2011 annual statement.     Bulletin 1-2011

New Jersey amended its laws concerning Captive Insurance Companies.     Assembly Bill 2360

Rhode Island revised a bulletin that provides notice of the Rhode Island Division of Taxation requirement for insurers to use the Online Premium Tax for Insurance (OPTins) system for payment of premium taxes.     Revised Bulletin Dated February 14, 2011


PRODUCERS
Washington amended its licensing procedures regulations to delete provisions on fingerprints and background checks for nonresident applicants.     284-17-122

Washington amended its regulations regarding licensing requirements and procedures to add requirements for electronic submission.   Amended:  284-17-429, 284-17-435, 284-17-443, 284-17-445,  284-17-449, 284-17-473, 284-17-483, 284-17-490, 284-17-530.  Adopted: 284-17-055, 284-17-065.  Repealed: 284-17-650.    

Wyoming amended its Code to provide for licensing of rental car agents renting motorcycles.     26-50-102

Wyoming amended license fees for surplus line brokers, adjusters and insurance consultants for hire.     26-4-101

Wyoming enacted legislation regarding background checks.     House Bill No. 4

Wyoming enacted new legislation to require an insurance producer doing business under any name other than the producer's legal name to notify the insurance commissioner prior to using the assumed name.     26–9–233

Wyoming made several changes to its Code including the addition of a reinstatement penalty equal to the amount of the continuation fee for failure to report continuing education.     26-9-207

Wyoming repealed 26-9-218 and 26-9-222 to eliminate licensing of insurance marketers and service representatives, effective July 1, 2011.     26-9-218 and 26-9-222


SURPLUS LINES
South Dakota has revised provisions relating to placement of surplus lines insurance and tax allocation of surplus lines insurance.     HB 1030

Wyoming enacted legislation providing for interstate cooperation in regulation of surplus lines and for computation of tax on surplus lines.     House Bill 242


TERRORISM EXCLUSIONS
Massachusetts issued a bulletin regarding exclusions for losses caused by acts of terrorism.     Bulletin 2011-4


TITLE INSURANCE
Maryland issued a bulletin to remind title insurers and title insurance producers that, with certain exceptions, insurers and producers who anticipate making trust money deposits must establish a Maryland Affordable Housing Trust (MAHT) account with a financial institution. They must also ensure that the interest earned on the MAHT account, less any reasonable and customary bank charges for commercial accounts, is remitted by the financial institution directly to MAHT.  The bulletin also notes that a yearly report must be filed with MAHT by every title insurer or title insurance producer who maintains a separate MAHT account.     Bulletin 2011-4


TRADE PRACTICES
New Jersey issued a bulletin to clarify standards for advertising and provide guidance for insurers regarding advertising content and/or omissions that the Department considers to be prohibited.    The state encourages insurers to disseminate the bulletin to all producers with whom they have agency contracts.     Bulletin 2011-1


WORKERS COMPENSATION
California adopted regulations to provide the standards required to allow a person to submit a query on a rating organization's internet website for workers' compensation insurance coverage information concerning a specified employer on a specified date and to allow for employers to dispute with the rating organization or the employer's insurance company incorrect information displayed on the internet website.     Title 10 s 2593 - 2593.7

Pennsylvania issued a notice for insurers that write Workers' Compensation explaining requirements to report premium, loss and claim count information for calendar year 2010 using Special Schedule ”W.”     Notice 2-19-2011

Texas issued several bulletins regarding Workers' Compensation and Employers' Liability Insurance:  Bulletins B-0008-11 and Bulletin B-0009-11 pertain to the adoption of amendments to the Texas basic manual of rules, classifications and experience rating plan.    Bulletin B-0010-11 pertains to amendments to the Texas retrospective rating plan manual.  Bulletin B-0011-11 pertains to classification relativities, expected loss rates and discount ratios and provides instructions for making filings.    

Washington amended regulations pertaining to reporting, classifications, audit and recordkeeping, rates, and rating systems.  In addition, WAC 296-17-86502 was repealed and WAC 296-17B-900 was adopted.     Amended:  WAC 296-17-855, -875, -880, -885, -890, -895, -89502, -89503, -89504, -920

Wyoming amended legislation to provide coverage for volunteers working on projects approved by the Wyoming department of state parks and cultural resources.     W.S. 27–14–108 (e) (x)

 


Need an easier way to keep up with fraud
compliance requirements?

First Consulting & Administration, Inc. has added a Fraud Compliance Service to our on-line research tools to help you answer questions such as:


What is the definition of fraud in each state?
What fraud warnings language is required in each state?
What forms require fraud warning language?
Is alternate fraud warning language allowed?


For more information regarding the Fraud Compliance Service for Property & Casualty Insurance click here, or call Stacy Koron or any First Consulting associate.