Property & Casualty News October 2012
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.
Utah amended the definition of advertisement to include websites and e-mails. R590-130-4
Iowa announced that a Second Injury Fund Assessment will be imposed upon insurers and self-insured employers. Source: "What's New" section of Iowa Insurance Division Website
California amended its Code concerning private automobile insurance issued to a peace officer, a member of the Department of the California Highway Patrol, or a firefighter. A.B. No. 2298
California amended its Code to permit proof of motor vehicle insurance coverage and evidence of driver financial responsibility to be provided on mobile electronic devices. A.B. 1708
Michigan issued a bulletin regarding the annual adjustment of the maximum work loss benefit payable under personal protection insurance policies. The bulletin provides the new payment for the period 10-1-12 through 9-30-13. Bulletin No. 2012-14-INS
Nevada enacted legislation providing a standard consent form authorizing an insurer to take possession of a motor vehicle. NAC 690B s 1 (LCB File No. R036-12)
CANCELLATION AND NONRENEWAL
Texas amended its Code concerning cancellation and nonrenewal of certain property and casualty insurance coverage. Included are changes to clarify when an insurer may send a notice of cancellation for nonpayment of premium and updates to the statutory periods in which an insurer may cancel certain policies. 28 TAC s 5.7001 +
FILING REQUIREMENTS - GROUP FILING
Colorado revised filing requirements to permit the submission of group filings for multiple companies in the same holding group. Reg. 5-1-10 s 5 ss A.5
FILING REQUIREMENTS - HOMEOWNERS
Colorado added a procedure for submission of homeowner’s filings containing underwriting methodologies that are not public record. Reg. 5-1-10 s 5 ss B.6
Alabama issued a bulletin regarding audit and examination fees effective 12-31-2012. Bulletin 2012-08
North Carolina issued a bulletin to communicate certain reporting requirements of the Annual Financial Reporting Law, effective immediately for financial statements as of December 31, 2012. Bulletin 12-B-04
Texas adopted amendments to its Code, primarily adopting by reference the March 2012 version of The NAIC Accounting Practices and Procedures Manual. 28 TAC §7.18
California modified the Insurance Holding Company System Regulatory Act. Included in the changes are requirements pertaining to enterprise risk reports. Ins s 1215 +
MEDICAL PROFESSIONAL LIABILITY
Pennsylvania issued a notice explaining that insurers offering basic limits medical malpractice coverage are required to report specified medical malpractice claims information to the Insurance Department for insured’s who are subject to the Medical Care Availability and Reduction of Error (MCARE) Act. Notice 9-29-2012
California enacted legislation requiring insurers with written premiums of $100 million or more to submit specified reports on its minority, women, and disabled veteran-owned business procurement efforts. A.B. 53
Colorado amended regulations concerning financial responsibility requirements for health care institutions and health care providers. 3 CCR 702 Reg. 2-1-1 s 1 - s 11 & 3 CCR 702 Reg. 2-1-3 s 1 - s 10
Washington adopted requirements to include OIC contact information on specified FAIR plan and PIP notices. WAC 284-19-170, 284-30-395
Georgia adopted a regulation regarding license renewals and continuing education requirements. It includes a transition from annual to biennial license renewals for insurance agents, insurance agencies, subagents, counselors, insurance adjusters, and certain non-resident licensees. Regulation 120-2-3-.05+
Indiana will impose retaliatory fees for residents of California, Connecticut, Massachusetts, and New Jersey who renew an existing non-resident license or apply for a new non-resident license. Retaliatory fees are already in effect for residents of Illinois. Source: Indiana Department of Insurance Website - "Information for You from the Commissioner"
Nevada adopted changes relating to prelicensing requirements for persons who have obtained certain insurance designations. NAC 683A.170
Nevada revised provisions relating to prelicensing requirements for persons involved in the sale or administration of insurance. Regulation Chapter 683A.170
Delaware issued a bulletin concerning the mandatory reporting of the geographic allocation of premiums. The bulletin describes reporting errors, instructs insurers to use specified software to report premiums written in certain areas, and requires all companies writing certain lines of business to submit a reporting action plan by 12-20-2012. Domestic/Foreign Insurers Bulletin No. 55
Maryland issued a bulletin regarding reporting requirements associated with the creation of homeowners and private passenger auto rate comparison guides for consumers. Reporting is required ONLY if an insurer received this bulletin directly from the Insurance Administration. Bulletin 12-19
New Jersey issued a bulletin concerning completion of reporting for the annual private passenger automobile premium survey. Survey responses are due on or before 11-1-2012. Bulletin 12-09
Nebraska issued a notice regarding the adoption of amendments pertaining to Motor Vehicle Service Contract Reimbursement Insurance. Notice 10-3-2012
Oklahoma issued a bulletin regarding implementation of the Federal Nonadmitted and Reinsurance Reform Act and related legislation. Financial Bulletin 2012-
California revised provisions related to travel insurance by, among other things, changing the definition of travel insurance and amending limited lines travel insurance agent license requirements. A.B. 2354
Alabama amended requirements pertaining to the formation and operation of workers' compensation self-insurer funds. 480-5-3-.06 +
Stretching your Resources – Monitoring TPA’s
Working with TPA’s brings on regulatory requirements that may stretch your compliance resources beyond full.
One of our On-Line Research Services–Third Party Administrator Licensing Service–answers questions you may have about TPA Licensing.
This On-Line Research Service enables Insurers, as well as TPA’s, to find answers about:
What is a TPA?
What organizations need to be licensed?
Where does a TPA need to be licensed?
What forms are needed for licensing?
What other requirements must be met?
Click here for more details, including the opportunity to take a Virtual Tour of our On-Line Services, pertaining to TPA Licensing Services.
Or, you can contact me.
We Know Advertising Compliance!
Concerned about advertising compliance of your contracted agencies?
You may be aware of our advertising compliance expertise. We
• Offer the only annual training seminar to the industry,
• Deliver in-house seminars for companies, and
• Provide advertising compliance reviews on an overload basis to carriers.
You may NOT be aware that we also help agencies, brokers and National Marketing Organizations comply with insurance laws nationwide on non-company, non-product advertising. More here
What they like about our compliance services:
• Marketing-friendly viewpoint
• Mark-ups don’t just say “no” they show “how”
• Our approachable reviewers
Could your contracted agencies use our help? Please pass this information along – or give us a call.
C. J. Rathbun