Property & Casualty News November 2011
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
Arkansas issued a bulletin specifying that the Arkansas Rural Risk Underwriting Association annual assessment will be collected for 2011. The $200 assessment is used for expenses of mailing volunteer fire department renewal subscription notices. Bulletin 9-2011
New Jersey issued a bulletin regarding the acceptance, renewal, nonrenewal and cancellation of private passenger automobile insurance policies. Bulletin No. 11-24
CERTIFICATES OF INSURANCE
Nevada issued a bulletin to remind insurers and producers that certificates of insurance are to accurately reflect the coverage provided in the policy and that misrepresentation of the terms and conditions of a policy of insurance is considered a violation of law. Bulletin 11-014
DISASTER AND EMERGENCY OPERATIONS
Connecticut issued a bulletin providing guidance to insurers regarding the October storm. Insurers are encouraged to use all available means to provide prompt and immediate relief to policyholders impacted by the storm, including but not limited to the temporary suspension of premium payments to allow continuing insurance coverage. Bulletin IC-32 (Reissued)
Connecticut issued a bulletin to advise insurers of the actions to take upon receiving notice of a claim that resulted from the October storm. Bulletin IC-30 (Reissued)
MEDICAL MALPRACTICE INSURANCE
Puerto Rico issued a circular letter regarding the Insurers Syndicate for the Joint Underwriting of Medical-Hospital Professional Liability Insurance. Circular Letter 2011-1819-AP
Rhode Island issued a bulletin notifying insurers of their obligation to satisfy Medicaid liens in the settlement of Property and Casualty claims. Bulletin 2006-4 (Amended)
The Oregon Insurance Division published the Fall 2011 issue of The Oregon Insurance Regulator. It is available on their website under Publications, Newsletter. Regulator, Fall 2011
California made several changes to its Code including changing “fire and casualty broker agent” to “property broker-agent” and “casualty broker-agent”; and repealing a provision requiring a nonresident who secures a license without exam through the filing of a certificate attesting the person is licensed in another state, and who then seeks a license as a resident, to pass the qualifying exam. Assembly Bill 1416
PERSONAL LINES INSURANCE
Maryland issued a data call bulletin directed to selected insurers. If an insurer did not receive the bulletin directly from the DOI, no action is required by that insurer. Bulletin 11-30
Kentucky issued a bulletin regarding Gramm Leach Bliley Act privacy notices. The bulletin states that licensees that do business in Kentucky may use the new Federal Model Privacy Form or continue to use other types of privacy notices to meet the notice content requirements of 806 KAR 3:210. Model privacy forms are attached to the bulletin. Bulletin 2011-06
Oklahoma issued a notice to insurers regarding the producer appointment renewal process. Important Notice for all Appointing Insurers
Pennsylvania issued a notice and record retention guidelines to assist insurers in establishing appropriate record retention procedures. Notice No. 2011-10
Alaska issued a bulletin regarding eligible surplus lines insurers. The bulletin includes a revised list of company status categories. Bulletin B 11-12
Delaware issued a bulletin regarding a new category of insurance company referred to as a Delaware Domestic Surplus Lines Insurer. This category allows a Delaware-domiciled insurer to write surplus lines policies in the state. Domestic/Foreign Insurers Bulletin No. 45
Hawaii issued a bulletin to outline regulatory changes that will affect the placement of nonadmitted insurance resulting from implementation of the Nonadmitted and Reinsurance Reform Act of 2010. Memorandum 2011-4 (E)
Nebraska issued a notice to address questions received by insurance department staff regarding surplus lines insurance reform. Included is information regarding eligibility requirements for Surplus Lines Insurers. A second notice was issued regarding recent Surplus Lines Insurance Act revisions. Notices dated 10-28-2011
New Jersey issued a bulletin directed to insurers seeking to be designated as a domestic surplus lines insurer in the state. The bulletin notes that a domestic surplus lines insurer shall be considered an eligible, unauthorized insurer for purposes of writing surplus lines insurance coverage in New Jersey. Bulletin No. 11-21
New Jersey issued a bulletin regarding changes to surplus lines insurer eligibility requirements to conform with the Non-Admitted and Reinsurance Reform Act of 2010. Bulletin No. 11-23
New Jersey issued a bulletin regarding rebates and inducements. The bulletin clarifies the intent of statutes and rules prohibiting the delivery by producers or insurers of certain services or other offerings for free or at a discounted price. The bulletin provides examples of services that are not considered prohibited rebates along with examples of prohibited rebates or inducements. Bulletin No. 11-22
California enacted new legislation requiring a company disclosure at the time of written quotation regarding use of certain dispute resolution and arbitration clauses. Ins s 11658.5
Missouri issued a memorandum stating that for the calendar year 2012, the Workers' Compensation administrative tax will be 1%, the administrative surcharge will be 1% and the Second Injury Fund surcharge will be 3%. Memorandum dated 10-28-2011
Changes in insurance legislation occur on an on-going basis all year. It seems like new legislation never stops arriving in your in-basket. Regardless of your product line, new legislation often times results in the need to revise your products.
First Consulting can assist with any product maintenance you may need.
We can assist with the review of the new legislation, as it arrives or after the fact, to see if it affects your products. And, if it does, we can assist with the creation of revised forms to address the new requirements. We can also assist with any form filings that result from legislative changes.
Contact me today to see how First Consulting can serve as a resource in the review of new legislation, and the resulting product changes and filings that result therefrom.
Jerry L. Wickersham
With our Co-Sourcing approach, we can assist in the manner best suited for your company’s unique requirements. Your staff maintains a role in the process at whatever level is most appropriate for your company and specific project.
Get more information about First Consulting and our services
on our website at www.firstconsulting.com
Product Drafting and Regulatory Approval
Now is the time to make use of First Consulting & Administration, Inc. for product development, drafting and regulatory approval assistance. We are experts in drafting all types of policy forms, including state specific versions. Our team can handle state insurance department approval filings, as well as Interstate Compact filings. We process any size form or rate filing from nationwide to a single insurance department.
Whether your company’s need is a rush filing before the end of this year, or the development of a new product during 2012, First Consulting is the answer for truly professional assistance.
For more information about our services: Click here Services. For more information about Co-Sourcing contact:
816-391-2744 or 800-927-2730
Or any First Consulting Associate