Property and 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.
Connecticut issued instructions for the renewal of licenses for casualty claim and motor vehicle physical damage adjusters and appraisers. All renewals must be completed via NIPR.com and fees must be paid electronically. Renewals must be submitted between 4/20/15 and 6/30/15, with all non-renewed licenses expiring on 6/30/15. Notice dated April 20, 2015
North Carolina has revised the procedures relating to the identification of an adjuster in declared disaster areas. Bulletin 15-B-4
AGENT / PRODUCER CONTINUING EDUCATION
Idaho made several changes to the requirements for producer and adjuster continuing education. IDAPA 18.01.53
New Mexico has determined that a conflict exists regarding requirements for continuing education - they require 7 hours for title insurers and 15 hours for other insurers, but each course is required to be 2 hours in length - that results in unnecessary time and expense. The DOI will begin allowing 1 credit hour courses. Bulletin 2015-017
AGENT / PRODUCER LICENSING AND APPOINTMENT; FEES
Arkansas issued a bulletin initiating a new electronic system for adding and/or deleting individual producers to/from agency licenses. The new system is accessed through the DOI's website under "Electronic Agency Affiliation". This electronic method can also be used for surplus lines licenses. Bulletin 6-2015
Arkansas issued a bulletin revising renewal requirements of insurance producer licenses. Licensed entities must annually file renewal appointments with the DOI, which indicates that the qualifications of the producer have been reviewed and found adequate by the entity. Terminations by paper are due 5/11/15 and electronic terminations via NIPR are due 5/25/15. Renewal appointments are allowed from 6/1/15 to 6/30/15. Methods of payment are outlined. Bulletin 7-2015
West Virginia will begin requiring fingerprinting of resident insurance producer licensing applicants. Fingerprints can be completed online. Limited lines, adjusters, and nonresident applicants are exempt. The new requirements will be effective 6/1/15. Notice of April 6, 2015
Alabama will not allow any motor vehicle policy to include exclusion(s) that limit coverage for vehicles used on public roads that are closed due to weather conditions. If such policies were previously approved by the DOI, they are considered disapproved with a deadline of 5/8/15 to replace the policy, although the DOI is not aware of any policies that were approved with such exclusions. Bulletin 2015-04
Arizona issued a bulletin in attempt to clarify the use of personal and commercial motor vehicle insurance policies and "TNC" (transportation network company) vehicles, which are vehicles that utilize technology (such as mobile phone apps) to link TNC drivers with potential passengers. Bulletin 2015-04
District of Columbia has implemented an emergency rule, effective from 2/2/15 through 6/2/15, which repeals the definition of "modern taxicab association" or "MTA". 31 DCMR 9901 Dated 02-02-2015a
CERTIFICATE OF AUTHORITY FILINGS
West Virginia has made several changes to the licensing requirements for nursing homes. 64-13-1
CLAIMS / CLAIMS ISSUES
Vermont issued a bulletin declaring that depreciation of labor costs when adjusting property loss claims is prohibited and when used as a business practice is deemed a violation of the Trade Practice Act. Bulletin 184
Iowa enacted legislation requiring submission of a corporate governance annual disclosure which must be submitted annually by June 1. I - HF 455
DATA CALLS / REGULATORY REPORTING
Florida made several revisions to insurer reporting requirements related to the FL Hurricane Catastrophe Fund. The revisions include required data calls for the 2015 to 2016 contract year, revised definitions, and instruction forms. FAC Rule 19-8.029
Texas has issued a data call from personal auto and residential property insurers. The call relates to HelpInsure.com, a resource for consumers shopping for insurance in Texas, and will request premium tax and other information, for rates effective 6/1/15. Bulletin B-0008-15
DISASTER / CATASTROPHIC EVENT
Illinois declared DeKalb and Ogle counties as disaster areas following severe storms. Insurers have been provided guidelines relating to cancellations/nonrenewals, extensions, repairs, affected property, underwriting, and instructions for notice of noncompliance to the DOI. Company Bulletin 2015-8
FILINGS: PROPERTY / CASUALTY
Utah has amended its regulation related to their published rate comparison tables. HB 19
FLOOD INSURANCE / NFIP
New Jersey has updated their surplus lines exportable list to add flood insurance for primary and excess coverage. The DOI determined that there is not currently an adequate market for flood insurance. NJAC 11:1-34.6
INSURER INVESTMENTS / SECURITIES
Kansas amended its law pertaining to permitted investments for insurance companies. House Bill 2066
Nebraska has revised the regulations relating to owners and/or operators of underground storage tanks. The revisions were effective 4/7/15. 159 NAC 3-001
West Virginia has amended several provisions in the regulations relating to amusement rides and attractions. Revisions include definitions, insurance requirements, and qualifications of inspectors. Revisions are effective 7/1/15. 42-17-1
NOTICE TO INSUREDS
Virginia has issued an administrative letter and requests all insurers distribute it to their appointed agents. The letter includes information on adverse underwriting decisions and required notices to insureds. Administrative Letter 2015-7
Kentucky issued the 2015 to 2016 premium tax schedule, including a list of payees and addresses. Insurers must conform to the new procedures by 7/1/15. Bulletin 2015-2
SOLVENCY / FINANCIAL CONDITION
Missouri has amended regulations relating to limitations for approved investments and solvency. The allowable percentage limitations for certain approved investments of extended Missouri mutual companies were updated. 20 CSR 200-12.020
Delaware has amended Surplus Lines Bulletin 5, regarding reporting and tax requirements. Included in the revision is notice that the quarterly premium tax summary report, Form SL-1925-Q, was updated on 4/21/15. Surplus Lines Bulletin 5, Amended
Mississippi enacted legislation creating the limited lines travel insurance act which defines and provides requirements for travel insurance. Senate Bill 2230
California has approved a Return-to-Work Supplement Program, which is a fund that will provide an additional $5000 for eligible workers. Applications are completed on the state's online portal. DWC Notice dated April 13, 2015
Idaho revised their workers' compensation regulations, specifically pertaining to travel expense reimbursement. Forms to request travel reimbursement from the employer are located on the Idaho Industrial Commission website. IDAPA 17.02.04
ARE YOU READY FOR ORSA AND CGAD?
With the 2015 state legislative season, we now have 23 states that adopted the Own Risk Solvency Assessment (ORSA) model law and 12 states with proposed laws. In addition, Iowa adopted the Corporate Governance Annual Disclosure Model (CGAD) and five states have proposed laws. We anticipate more states will adopt these models by the close of the legislative season.
First Consulting can help your company with ORSA & CGAD readiness.
The ERM Starter Kit and ERM Tool Kit contain template and tools for policies, procedures, committee charters, reports and more. Remember if your company uses A.M. Best or Fitch for ratings, these agencies will ask detailed questions about your ERM program, even if your company is too small to file an ORSA Summary Report. Check out the full description of our ERM/ORSA Comprehensive Consulting services here:
The Corporate Governance Tool Kit provides your company, in any line of business, the documentation needed for compliance readiness under the NAIC Corporate Governance Annual Disclosure Model Act (CGAD) and supporting Model Regulation. Find out more about that tool kit here: http://firstconsulting.com/services/corporate-governance-tool-kit
Carol Stern, FLMI, AIRC, ACS
CUSTOM RESEARCH SOLUTIONS WITH FIRST CONSULTING
Is your research out of date? Need a 50 state survey conducted? Would it be helpful to know each state insurance department’s position on a particular regulatory issue that you just can’t find in the regulations?
Let First Consulting help!
Custom Research for Your Needs
Research is only helpful if it’s conducted and packaged in a way that is useful for the particular objective. First Consulting recognizes this and works with our clients to create accurate, up-to-date research solutions tailored to our clients’ specific needs. We are experienced in creating:
• 50 State Surveys (covering all lines of business)
• Targeted Research on one Particular Topic or Issue
• Email/Telephone Surveys Seeking Insurance Department Position (we will never reveal our clients’ identity!)
First Consulting has been tracking and researching the insurance regulatory landscape since 1969. We also value our relationships with state regulators and will be happy to seek department positions on topics that our carrier clients may not feel comfortable doing themselves. Let us put this experience to work for you.
Contact me today to find out how First Consulting can create a customized solution to your research needs!
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C. J. Rathbun, FLMI, CCEP, HIA, AIRC