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.
AGENT / PRODUCER LICENSING AND APPOINTMENT
Arkansas issued a bulletin to all insurers regarding notice requirements for the termination of an appointment, employment, contract, or another business relationship with an insurance producer. Bulletin No. 4-2014
New Jersey amended its regulation regarding fraud prevention and detection plan. It updated information required to be in the fraud prevention and detection plan and the training program requirements. NJAC 11:16-6.3, NJAC 11:16-6.5, NJAC 11:16-6.7
Illinois added a requirement that insurance cards include a bar code containing vehicle and insurance policy information. 50 Ill. Adm. Code 8010 Dated 1-31-2014
Hawaii issued a memorandum pertaining to captive insurance company 2013 annual filing requirements that are due in 2014. Memorandum 2014-1C
CERTIFICATE OF AUTHORITY
Michigan issued a bulletin announcing the adoption of the Uniform Certificate of Authority Application (UCAA). Bulletin 2014-04-INS
CIVIL UNIONS / DOMESTIC PARTNERS
Oregon advised of a temporary rule which mandates that in the administration of all state laws, all state agencies must recognize the marriages of same-sex couples validly performed in other jurisdictions to the same extent that they recognize other marriages validly performed in other jurisdictions. This temporary rule will expire on June 30, 2014. OAR 105-010-0018
Missouri issued a bulletin requiring insurers to provide the specified contact information to the Department on the Excel sheet that accompanied the bulletin. Bulletin 14-01
Nebraska added flood-damaged motor vehicles to its definition of salvage. The bill also clarifies what does and does not constitute flood damage. LB 446
South Carolina issued a notice of emergency insurance declaration for the state for winter storm. The Department has determined that licensure of temporary non-resident adjusters is necessary to ensure that adjusters are available to assist with the evaluation of claims resulting from the storm. Procedures and forms for licensure are available from the Department's website. Bulletin 14-02
CREDIT FOR REINSURANCE
Missouri adopted a permanent emergency rule. The purpose is to make regulation consistent with the NAIC's Credit for Reinsurance Model Act and Regulation. The amended statute provides that all new and renewal reinsurance transactions entered into after January 1, 2014 must conform to the specified requirements for credit to be given to a ceding insurer. 20 CSR 200-2.100 dated 11-1-2013
Iowa amended its statute concerning policy form filing. The Department will no longer require a signature line for acceptance by the named insured on endorsements, riders and agreements that restrict coverage provisions of a previously issued policy form. 191-20.4 dated 10-16-2013
Arkansas issued a bulleting advising they have adopted revisions to the NAIC's Accounting Practices and Procedures Manual. Domestic insurers and reporting entities are required to use the manual for the annual statement as of December 31, 2014. Bulletin 3-2014
California amended its regulation to provide potential corrective actions which the Commissioner of Insurance may discuss with any insurer that has been determined to be in a hazardous financial condition. T. 10 s 2598.3
New Jersey amended its rules to conform to the current NAIC Model in the determination of insurers in a hazardous financial condition. NJAC 11:2-27.1 Dated 08-05-2013
Georgia issued a directive advising farmers mutual fire insurance companies, workers' compensation funds, third-party administrators and other limited risk entities must now pay annual renewal fees electronically. Directive 14-EX-1
Georgia issued a bulletin stating that Inspection Policies are considered insurance contracts under state law and therefore, insurers should be permitted to inspect boilers and pressure vessels pursuant to the Boiler and Pressure Vessel Safety Act. Bulletin 14-PC-1
Hawaii announced that it will implement a new premium tax system, OPTins, to help encourage insurers to electronically file premium tax statements and pay premium taxes. News Release
REGULATORY REPORTING REQUIREMENTS
Illinois issued a bulletin that notifies all insurance companies doing business in Illinois that financial regulatory filings submitted for Director's approval after December 1st of any given year may not be completely processed before December 31st of that year. Company Bulletin 2014-1
Alaska issued an order adopting the NAIC's risk based capital instructions for use by domestic property, casualty, life and health insurers for reporting period ending December 31, 2013. Order R14-02
Texas adopted by reference certain 2013 NAIC reports containing risk based capital formulas. There are some changes including new requirements regarding commercial mortgage loans. 28 TAC s 7.402 Dated 12-09-2013
New Jersey issued a bulletin advising that certain P&C insurers must submit information regarding P&C claims pertaining to damage caused by Superstorm Sandy to the Department. Bulletin 14-02
New Jersey issued an order adding flood insurance for primary and excess coverage to the classes of insurance or risk designated as eligible for export on the surplus lines insurance exportable list. Order A14-101 dated February 21, 2014
Montana issued a memorandum that outlines specific unfair and/or deceptive practices when dealing with insureds’ appointed counsel. Advisory Memorandum dated January 29, 2014
Ohio amended the definition of "intangible property" to assist holders in identifying types of reportable property. Rule 1301:10-1-01
Oklahoma issued an emergency measure adopting Title 810, Workers' Compensation Commission (WCC). Title 810 implements the Administrative Workers' Compensation Act. The Act replaces the Workers' Compensation Court with an administrative system under the WCC. The new rules apply to claims occurring on or after February 1, 2014. The emergency measure expires 9/15/2015. 810:1-1-1 dated 12-02-13
Texas issued a bulletin advising effective 6/1/2014 insurers may use the NCCI advisory loss costs as an alternative to the classification relativities. Bulletin B-0004-14
Drafting Help from First Consulting
If you are still trying to carve out time in your organization for someone to draft forms, think of First Consulting as a resource.
ISO made many form changes in 2013. Are you considering the use of these forms or needing time to consider how the forms may impact your program? Whether you are considering a change in using ISO forms or converting to ISO, or any advisory organization forms, First Consulting can assist in the research and drafting of the forms.
No matter what your drafting or product filing need, we can help.
For more information about our drafting services, please contact me, any First Consulting associate, or visit our website.
Analyzing is for Analysts…..Filing is for First Consulting!
Your compliance resources are limited. It’s critical that you maximize the talents and skills of your staff. First Consulting can help you to reach your staff’s full potential.
How much of your Analysts time is spent handling the routine functionality of form and rate filings? Wouldn’t their skills be better used elsewhere?
Keep your Analysts analyzing and let First Consulting
handle your state product filings.
We are devoted to helping you meet your target implementation dates and getting your products filed on a timely basis. Co-Sourcing with First Consulting means you will always remain in control of your form and rate filing project. You will determine how and when your project will be handled.
For more information about our filing services, please contact me or any First Consulting associate, or visit our website.
Sean Cox, HIA, MHP