Property & Casualty News March 2012

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

Connecticut adopted regulations concerning a territorial rating system for private passenger automobile insurance. The regulations provide private passenger nonfleet automobile rate filing submission requirements and include a description of the exhibits to be provided when a territorial rate filing is submitted. CT ADC § 38a-686-1 thru CT ADC 38a-686-3

New Jersey issued a bulletin to withdraw Bulletin No. 10-22, dated August 27, 2010, and to clarify for auto insurers certain information pertaining to providing Personal Injury Protection (‘PIP‘) benefits through providers who are in provider networks of managed care organizations with which the insurer or its PIP vendor has contracted. Bulletin 12-03

Oregon issued a bulletin regarding Personal Injury Protection required on commercial motor vehicles. Insurers are reminded that PIP is required on commercial motor vehicle policies if vehicles covered on the policy meet the definition of “Private Passenger Motor Vehicle”. Letter dated February 17, 2012

Pennsylvania amended its law concerning commercial driver licensing. House Bill No. 1458

Rhode Island amended its regulations concerning payment of automobile damage claims clarifying certain insurers obligations. R27-78-002 through R27-78-005

South Dakota issued a bulletin which specifies disclosure language required when insurers issue auto policies that contain permissive user drop down coverage. The bulletin provides language to be used on new policy applications, new policies and in force policies. Bulletin 12-02


FILING REQUIREMENTS

Virginia issued an Administrative Order specifying that the requirements to file rates and supplementary rating information for use in writing Excess Crime and Excess Fidelity Insurance are suspended. Administrative Order 11925


FINANCIAL REGULATION

Texas adopted amendments to its Regulations concerning risk-based capital and surplus requirements for insurers. 28 TAC §7.402

Texas adopted revised regulations concerning requirements for the filing of annual statements, quarterly statements, other reporting forms, and electronic data filings. 28 TAC §7.68


IDENTITY RECOVERY SERVICE CONTRACT

Texas adopted amendments to existing rules and a new rule regarding the Identity Recovery Service Contract Providers and Administrators program. 16 TAC §§90.10, 90.20, 90.21, 90.23, 90.24, 90.40 - 90.42, 90.70, 90.71


LEGAL EXPENSE INSURANCE

South Dakota repealed provisions related to Legal Expense Insurance. 58-42-1 through 58-42-17


LIABILITY INSURANCE

Wisconsin amended regulations regarding exemptions from mid-term cancellation requirements and from required uninsured motorist, underinsured motorist and medical payment coverages. Ins 6.77


MISCELLANEOUS

Kentucky adopted new regulations to provide reinsurance, financial solvency, and consumer protection requirements for captive risk retention groups. 806 KAR 49:050

Louisiana adopted new rules concerning licensing for therapeutic group homes, including requirements for insurance. The new rules require General and Professional Liability insurance of at least $300,000 and Workers' Compensation insurance. LAC 48:I.6209

Michigan issued a bulletin regarding the Property and Casualty Guaranty Association's annual adjustment of the net worth limit and claim limit for the period January 1, 2012 through December 31, 2012. Bulletin 2012-02-INS


PORTABLE ELECTRONICS INSURANCE

Indiana enacted legislation regarding portable electronics insurance. A new chapter was added pertaining to this coverage and two sections of existing code were amended. Senate Bill 148

South Dakota enacted legislation to regulate insurance coverage for portable electronic devices. Senate Bill 115


PRODUCERS

Maryland issued a release warning insurers of a false insurance administrative website offering licensing renewal services. The website tells users to run an executable file (.exe) to renew their licenses and is not in any way affiliated with the Maryland Insurance Administration. Running the file may cause severe damage to a computer. Revised Release February 15, 2012

Missouri adopted an emergency regulation regarding the licensing and authorization of portable electronics insurance producers and related entities. The regulation establishes application requirements and fees. 20 CSR 700-1.160

Missouri adopted an emergency regulation setting the fees for motor vehicle extended service contract producer license applications. 20 CSR 200-18.030

New Jersey adopted a new rule requiring the utilization of the national insurance producer database of the NAIC (through the National Insurance Producer Registry), or any other equivalent uniform national database, for the licensure of an individual or entity as an insurance producer and for the renewal of such license. Rule 11:17-1.3

South Dakota amended its Code pertaining to producer continuing education and licensing requirements applicable to certain transportation ticket agents of common carriers and attorneys licensed to practice law in South Dakota. Senate Bill 33


SURPLUS LINES

Maryland amended surplus lines and nonadmitted insurance regulations. Changes include those made to implement the Nonadmitted and Reinsurance Reform Act, modify qualifications for meeting the definition of Commercial Insured, and revise the criteria for waiving the diligent search requirement. COMAR 31.03.06.01-1 thru 31.03.06.11


WORKERS COMPENSATION - ASSESSMENTS

Pennsylvania issued a Notice regarding the workers' compensation security fund assessment. Insurers writing workers' compensation insurance in Pennsylvania will not be required to submit contributions for the Fund in 2012. Notice 2012-02


You Can Apply Our Expertise to Your ERM Needs

Where is your company in the challenge of meeting current Enterprise Risk Management (ERM) expectations of the regulators? Do you have Dodd-Frank fatigue? Or are you fresh out of the gate in the pursuit of an “ideal compliance structure”? You know that there’s a “long row to hoe” – identifying current reality, assessing risks and organizing management responses in order to strengthen priority areas.

We’ll gladly put on our work gloves and apply our expertise to help you tame the task and finish that “long row” faster and more easily. Read more here Operational Compliance or contact us today to see how much we can assist you.

C. J. Rathbun, FLMI, CCEP, HIA, AIRCM

Senior Consultant
800-927-2730 X 2740
CJ.Rathbun@firstconsulting.com


It’s Not Advertising Review Overload, It’s an Opportunity!

Is your Advertising Compliance Review Team bogged down reviewing web pages and blocks of “tweets” along with the usual assortment of lead letters, marketing emails and direct mail campaigns? Perhaps you have never called on First Consulting to help with your advertising compliance review. (Follow the link to learn more.)

Here’s your opportunity to find out how experienced, “user-friendly” and helpful our staff members are. If your “overload” is chronic, we can even set you up on a monthly retainer status to help level out the floods and trickles.

We can provide a little help or a lot – Co-Sourcing is what we call it. Where you stay in control of the process while using this opportunity to tap into the experienced help you want.

Jerry Wickersham
816-391-2743

C.J. Rathbun
816-391-2740


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