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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.
Maryland amended its regulations concerning license requirements for public adjusters. SB 75
AGENT / PRODUCER CONTINUING EDUCATION
California has made substantial revisions to prelicensing educational objectives for certain lines. Due to the nature of the revisions, the DOI requires submission of specified items by a course's renewal date for the following lines: property, casualty, property/casualty, personal lines, limited lines auto, and commercial insurance. Providers of prelicensing courses must implement the revised curriculum by July 15, 2016. Notice dated April 4, 2016
Florida has amended rules pertaining to continuing education. Revisions include: removal of certain course provider qualification requirements, use of copyrighted materials, expanded violations that are subject to penalty, and access to login/database information. FAC Rule 69B-227.130 +
AGENT / PRODUCER LICENSING AND APPOINTMENT
Arkansas rescinded Bulletin 7-2015, which affects termination and renewal of producer appointments. New Bulletin 6-2016 states that appointment of a producer by a licensed entity requires annual filing of a renewal appointment, and such renewal indicates that the producer's background and qualifications to act as an agent have been reviewed by the entity. Lapsed producer licenses may be reinstated within 12 months of expiration without a written exam. This bulletin also outlines key dates and deadlines. Bulletin 6-2016
Virginia amended its code concerning business entities acting as insurance producers, insurance consultants, public adjusters, surplus lines brokers or viatical settlement brokers. HB 393
Colorado established procedures for obtaining a certificate of title for an abandoned motor vehicle at a motor vehicle repair facility (MVRF) effective May 30, 2016. Certificates of title will not be issued for vehicles with a retail fair market value less than $200, and those vehicles may only be sold for junking purposes. For vehicles that qualify for a certificate of title, they must be sold pursuant to Colorado law. 1 CCR 204-10 Rule 10
Delaware amended and adopted rules regarding motor vehicle damage appraisers. Appraisals can be made based on personal inspection or based on photographs, video, or other digital imagery. Insurers are prohibited from requiring photographs, video, or other digital imagery as part of an appraisal. Owners can require personal inspection if they are not satisfied by an appraisal based on photographs, video, or other digital imagery. Changes are effective May 21, 2016. 602 s 1.0 +
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
Maryland has issued a bulletin reminding insurers of the requirements for notice to insureds about cancellation/nonrenewal of policies, premium increases, and reductions in coverage. The DOI has discovered that some insurers and premium finance companies are not following statutory requirements regarding the number of days notice that is required. Bulletin 16-12
Vermont amended its code regarding transfer or conversion of protected or incorporated protected cells for captive insurance companies. HB 538
CERTIFICATE OF AUTHORITY FILINGS
Connecticut issued a notice stating that the DOI will email renewal licenses rather than mail hard copies starting with licensees that have a May expiration. Companies are encouraged to confirm the accuracy of the email address(es) on file with the Department, and NOT to update the email address to any general boxes. Notice dated March 9, 2016
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Colorado has amended provisions relating to credit insurance and component rating. Rates that are the equal to or less than Appendix A are not required to be filed. The amendment includes updates to Appendix A. All changes were effective May 15, 2016. 3 CCR 702 Reg. 4-9-2
DISASTER / CATASTROPHIC EVENT
Texas has declared that the weather events on April 11, 2016 through April 13, 2016 and April 15, 2016 through April 20, 2016 are a catastrophe and claims associated with that event are subject to additional time for processing per Section 542.059. Bulletin B-0008-16; Bulletin B-0007-16
California issued notice that Citibank will be replaced by Union Bank for all EFT payments to the DOI. Payments made to the Citibank account after June 30, 2016 will be returned which may result in late payment and additional fees. Contact information can be found in the bulletin. Notice Dated April 20, 2016
Missouri has permanently adopted the emergency provisions relating to insurance holding company systems to conform with the NAIC's "Insurance Holding Company System Model Regulation with Reporting Forms and Instructions." The emergency regulation became effective January 1, 2016 and the permanent regulation will become effective May 30, 2016. 20 CSR 200-11.101
Montana has revised rules regarding enterprise risk reports for holding company systems. The changes bring the rules into compliance with NAIC accreditation standards. New Form F is added. 6.6.3702 +
District of Columbia enacted legislation that requires insurance coverage for individuals and entities that engage in mold assessment and remediation. Such individuals must obtain a license from the Department of Energy and Environment. The regulation outlines eligibility and exam requirements, and fees for initial applications and renewals. 20 DCMR 3202 and 3207
Vermont issued a bulletin regarding "non-cumulation" policy provisions and endorsements for occurrence-based liability policies. Bulletin 189
Virginia amended its code relating to statutes of limitation in certain product liability actions. SB 90; 8.01-249
West Virginia amended and reenacted laws relating to the Patient Injury Compensation Fund that is to succeed the Medical Liability Fund. Relates to assessments, medical malpractice claims, procedures, several liability, and damages. SB 602
West Virginia repealed its law relating to the impact of insurance policies on liability of landowners or insurers of landowners who open their property for use by others for military, law enforcement or homeland-defense training or recreational or wildlife propagation purposes. SB 270; 19-25-7
Colorado enacted legislation that increases the surcharge on monetary penalties from 10% to 15% for fines relating to statue 24-24-108 (2). The surcharge is no longer limited to the first $75,000 of a fine. The division's name and website address has been changed. Bulletin B-1.26
MISCELLANEOUS PROPERTY / CASUALTY
Florida amended its statutes authorizing domestic reciprocal insurers to pay a portion of unassigned funds to their subscribers. SB 812
Oklahoma issued a bulletin informing all property and casualty insurers that the Department will begin enforcing notice requirements as it pertains to withdrawal or discontinuance of writing a line of insurance. Bulletin PC 2016-03
Puerto Rico issued a circular letter advising that General Agents do not have the obligation to submit the report requested under Ruling Letter CN-2015-193-AF. CC-2016-1884-D
Tennessee has revised various provisions regarding accreditation and reinsurance of insurance companies. HB 2568
Washington amended its insurance law regarding exemption of contracts in which employer or employer's agent agrees to reimburse its employees for mileage, maintenance, and repairs of personal vehicles used for business purposes. HB 2356; 48.110.015
Washington enacted legislation authorizing insurers to offer customer satisfaction benefits for personal property and casualty insurance. HB 1578
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NOTICE TO INSUREDS
Virginia amended its code regarding various notifications that must be provided to insureds upon issuance or renewal of certain property and casualty policies issued on or after January 1, 2017. HB 307
Virginia amended its code relating to electronic delivery of insurance policy information. HB 851; 38.2-325
Kentucky issued a bulletin providing guidance on the local government premium tax schedule and a listing of payees and addresses. Adoption of the procedures is required by July 1, 2016. Bulletin 2016-1
PROFESSIONAL LIABILITY INSURANCE
Maryland amended its code regarding health care provider malpractice insurance. HB 1487
Florida has revised the rules relating to mediation of property insurance claims in order to promote clarity and efficiency. Revisions include: changing the start date to resolve a claim before a mediation conference, specifying the location of mediation forms online, and clarifying the location of mediation conferences in relation to the insured property. FAC Rule 69J-166.002
Louisiana issued a bulletin that revised the LDI's position on use and implementation of schedule ratings plans by property/casualty insurers. A 25% aggregate across all schedule characteristics will be maintained, however specific limitations on credits or debits for each scheduled characteristic will no longer be necessary. Bulletin 2016-03
Massachusetts has implemented an emergency regulation to update payment rates for certain addictive disorder programs and/or substance-related programs to publicly aided individuals by governmental units. Emergency 101 CMR 346.01
REGULATORY REPORTING REQUIREMENTS
Idaho issued a bulletin announcing that authorized insurers are to implement the March 2016 version of the NAIC’s Accounting Practices and Procedures Manual when submitting the 2016 annual and quarterly financial statements. Bulletin 16-01
The NAIC created three new P&C SERFF filing types for the state of North Carolina. The new filing types are: Enhancements-Forms, Enhancements-Rates, and Credit Scoring Model. SERFF Message
TITLE INSURANCE / AGENTS
California Insurance Department, through the Department of Justice, has a new surety bond requirement for underwritten title companies. The change is effective July 1, 2016, and the bond form can be found on the DOI's website. Notice Dated April 29, 2016
Virginia amended provisions regarding real estate settlements and real estate settlement agents. SB 204
Alaska has decreased the 2016 voluntary loss cost and assigned risk rates 3.7%, effective May 1, 2016. The decrease is a result of approval of the recent National Council on Compensation Insurance loss cost and assigned risk rate filing by the Alaska DOI. Bulletin B 16-05
Florida has revised rules relating to re-employment for workers' compensation. Revisions include forms and documentation, training and education, approval of remedial education courses, and location of forms online. FAC Rule 69L-22.006 +
Montana has corrected an error to a workers' compensation regulation relating to re-opening medical benefits. Certain language was inadvertently not deleted in the original publication, therefore references to the nature and type of medical benefits to be re-opened and specific timeframe of treatments have been removed. 24.29.3124
Wisconsin issued a letter to inform claims offices and attorneys representing parties in workers' compensation disputes of the changes to the Certification of Readiness (COR) process and form WKC-17717-DHA-E effective May 1, 2016. Insurance Letter 511
Wyoming amended its labor and employment law regarding claims procedures for Workers' Compensation. SF 89; 27-14-601
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