Property & Casualty News
The following is a brief review of selected items that may be of current interest to First Consulting & Administration, Inc. 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. Please call our office.
AGENT / PRODUCER COMPENSATION
Louisiana issued an advisory letter regarding producer compensation and the placement of commercial property and casualty insurance. The letter also discusses disclosure and "net of commission" quotes. Advisory Letter No. 12-03
AGENT / PRODUCER LICENSING AND APPOINTMENT
Alabama adopted new rules on insurance producer, temporary producer, and service representative requirements relating to prelicensing education, examinations, licensing, appointments and disciplinary consequences. 482-1-147-.01 through .13
Alabama amended producer licensing requirements regarding education and license renewal. 482-1-110-.03 through .07
California distributed a notice describing changes to the license application process. California residents applying for specified license types must first pass the qualifying examination before submitting their license application. Notice dated October 17, 2012
Alabama issued a bulletin regarding implementation of the Online Insurance Verification System effective 1-1-13 to verify that motor vehicles are covered by required liability insurance. Bulletin 2012-12
Alabama issued a bulletin regarding the form to be used by insurers or producers acting for insurers to provide evidence of coverage for licensed motor vehicle dealers, reconditioners, rebuilders, and wholesalers. Bulletin 2012-09
California amended cancellation provisions applicable to personal auto to delete an exception for "any policy or coverage that has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy". Ins s 661
Maryland adopted changes to requirements for mandatory reporting of required security by motor vehicle insurers. COMAR 11.18.04.03
Pennsylvania approved changes to laws concerning farm/agricultural vehicles. House Bill 2372
COMMERCIAL PROPERTY INSURANCE
Iowa amended property insurance requirements for state licensed agricultural warehouses and warehouse operators. 21-90.10
Connecticut issued a bulletin adding claims-made rate, rule and form filings to the list of commercial property and casualty coverages eligible for exemption from filing review procedures. However, professional liability claim-made policies issued to medical professionals are not exempted. The bulletin describes the existing exemption process. Bulletin PC-71
Colorado amended its regulation concerning hazardous financial conditions to clarify the types of insurers to which the regulation applies. Regulation 3 CO ADC INS 3-1-7
Alabama issued a bulletin addressing implementation of the Alabama Homeowners Bill of Rights Act and requirements that insurers provide certain policyholders with an Outline of Coverage and Comprehensive Policy Checklist. Language for the Outline of Coverage and Checklist is included with the bulletin. Bulletin 2012-10
California enacted legislation concerning the provision of insurance to applicants or policyholders engaged in foster home activities in a certified family home. Ins s 676.75
MEDICAL PROFESSIONAL LIABILITY
Louisiana amended several provisions related to the Patients' Compensation Fund. Included is a revision in the timing for insurers' submission of annual claims experience. LAC 37:III.101 +
Nevada issued a bulletin regarding medical professional liability closed-claim reporting requirements. A new closed-claim reporting template is provided on the Division's website. Bulletin 12-006
Alabama issued a bulletin providing audit and examination fees to be collected effective 12-31-2012. Bulletin 2012-08
Nebraska issued a notice regarding the adoption of amendments to rules concerning motor vehicle service contracts. The Department also issued a bulletin which, among other things, sets out SERFF form filing requirements applicable to motor vehicle service contracts. Notice of 10-3-2012 & Bulletin CB-106 (Amended)
Rhode Island issued a bulletin informing insurers they must provide the Department with contact information for the principal person responsible for processing consumer complaints. The bulletin notes that Insurers are also required to notify the Department electronically within 7 days of any change in the primary contact information provided. Insurance Bulletin 2012-3
Texas adopted a new rule that describes information on consumer complaint handling available through the Insurance Department's toll-free telephone number. Rule 28 TAC 1.603
Utah amended rules describing how record requests are to be submitted to the Insurance Department. R590-151 +
Washington adopted rate stability rules to provide standards for rating rules created by insurers to limit premium changes experienced by policyholders, sometimes called "transition rules" or "premium-capping rules". WAC 284-24-130
New Hampshire amended its life and health reinsurance agreements rule adding, among other changes, a preamble on legitimate use of reinsurance agreements. This would apply to licensed property and casualty insurers with respect to their accident and health business. Rule ADC Ins 308.01+
Virginia revised its rules governing credit for reinsurance to incorporate revisions made by the NAIC to its Credit for Reinsurance Model Regulation and made additional clarifications and revisions. 14 VAC 5-300-10 +
Connecticut, Delaware, District of Columbia, Maryland, North Carolina, New Jersey, New York, Pennsylvania, Rhode Island, and West Virginia have published materials on their websites.
South Carolina issued a bulletin regarding Nonadmitted and Reinsurance Reform Act provisions that have affected the placement of nonadmitted insurance in the state. Bulletin 12-08
SURPLUS LINES INSURANCE
Alaska published a current list of eligible surplus lines insurers. Bulletin B 12-07
Alabama adopted new rules regarding licensing and appointment of title insurance producers. 482-1-148-.01 through .15
California amended provisions establishing procedures for reporting and remitting unclaimed property. Regulation 1155.250+
UNFAIR TRADE PRACTICES
Utah amended its unfair marketing practices rule to bring it into compliance with the law on unfair inducements related to insurance products. Among the changes were deletion of the section "inducements, gifts and merchandise given in solicitation or sale of insurance" and the addition of a section regarding "electronic platform and application systems". Rule R590-154
First Consulting can help with UCAA filings
If your Company is planning action such as a name change, re-domestication, acquisition, merger, or adding of a new jurisdiction or line of business, these actions will require a change in your certificate of authority. Preparing and making the filings can be a time consuming task.
Our experienced staff can help with the Uniform Certificate of Authority Application (UCAA) developed by the NAIC and we are familiar with the various state-specific requirements that exist. First Consulting can handle these services and free your staff for other functions and projects.
Click here for information on additional state licenses or authority or click here for corporate changes, such as name changes.
Or, you can call or email Scott Sheffer or Jerry Wickersham today to get more details about our services.
Protection Against a Risk
So you’ve identified a specific risk for your company. How do you determine the best protection?
The time comes when your strategy must be grounded in managing behaviors– of employees, of managers, of third parties. You cannot instruct employees in what to believe, but you can instruct them on what to do.
Some questions to answer in the process:
What is the company’s determined response to the risk? (Four options)
What behaviors will demonstrate compliance with this decision? (In each stakeholder category)
What factors in that behavior are measurable? (Short-term, mid-term and long-term)
How do we want to help confirm that behavior? (Two choices)
What disciplinary actions are we willing (and legally able) to apply across all staff levels?
If you would like assistance exploring these questions, click here for some help.
C. J. Rathbun