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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.
AGENT / PRODUCER COMPENSATION
Alabama published a bulletin regarding producer authority to collect fees from consumers for non-producer services. The bulletin provides a schedule for certain services and notes that the fees must be disclosed to consumers as a charge by the producer, separate from insurance premiums. Bulletin 2016-06
AGENT / PRODUCER LICENSING AND APPOINTMENT
Michigan issued a memorandum informing resident and non-resident licensed agencies of a new online system available for licensed business entity producers. Effective December 1, 2016, licensed agencies will be required to use ILOS exclusively. Memorandum of September 19, 2016
Nebraska issued a notice regarding reduction of fees for Insurance Producer and Insurance Consultant licenses, effective January 1, 2017. Notice of September 23, 2016
California added a definition of "personal vehicle" under the Passenger Charter-Party Carrier's Act. AB 2763
Connecticut amended a regulation pertaining to motorcycle insurance. 14-12-1a
Delaware amended its motor vehicles law regarding electronic communication devices. HB 302
Maryland issued a bulletin informing property and casualty producers who write insurance policies for the Maryland Automobile Insurance Fund of the new motor vehicle insurance law which allows qualified applicants to reject Personal Injury Protection benefits. Bulletin 16-29
New Jersey enacted legislation regulating autocycles, effective August 31, 2016. In addition, Motor Vehicle and Traffic Laws were amended to include the definition of "autocycle" and the uninsured motorist coverage regulation was amended to add autocycle. SB 1155
New York amended its vehicle and traffic law to include sani-vans and waste collection vehicles in the definition of "hazard vehicle" and to include hazard vehicles within certain speed restrictions, effective November 1, 2016. SB 426
Rhode Island amended its regulations regarding electronic insurance cards for motor vehicles. R31-47-004
Virginia issued orders regarding amendments to the Virginia Automobile Insurance Plan Manual for rules, classifications, territories, rates, additional charges, and forms to provide for writing insurance upon applicants assigned by the Virginia Automobile Insurance Plan. Administrative Order No. 12020 and Administrative Order No. 12021
ASSISTANCE WITH PRODUCT INNOVATIONS
Our knowledgeable staff can assist you and your staff with the latest program or form revisions.
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Hawaii revised its rules governing captive insurance companies. Chapter 16-17, Hawaii Administrative Rules
COMMERCIAL LINES INSURANCE
Alaska issued a bulletin to all insurance licensees who hold surety as a line of authority and other interested parties. Effective October 16, 2016, Alaska will no longer offer surety as a line of authority. Any active license with surety authority will automatically be amended to reflect property and casualty authority. Bulletin B 16-09
Massachusetts amended its regulations regarding safety standards and inspection requirements for different types of boilers, pressure vessels, and air tanks. 522 CMR 1.02
Oklahoma amended provisions regarding mandatory insurance requirements for emergency medical services. 310:641-3-10
CONFIDENTIALITY / PRIVACY
California enacted legislation to require entities conducting business in the state that own or license computerized data including personal information to disclose a breach of security of that information to the affected person(s). It provides information to be included in the notice and parameters for its presentation. AB 2828
Tennessee issued a bulletin to all licensed insurance companies regarding Gramm-Leach-Bliley Act annual privacy notices. BULLETIN 16-05
Texas issued a reminder to domestic or commercially-domiciled insurance companies regarding reporting cybersecurity incidents to the Insurance Department. A company should contact its assigned financial analyst at Texas Department if it experiences or discovers an unauthorized acquisition, release or use of personal information or sensitive company information. B-0022-16
DATA CALLS / REGULATORY REPORTING
Massachusetts amended its regulations regarding reporting of statistical data by Property and Casualty Insurance Companies. 211 CMR 15.00
WHAT REPORTS WILL YOU SUBMIT IN 2017?
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DISASTER / CATASTROPHIC EVENT
Louisiana issued an emergency rule regarding suspension of Right to Cancel or Nonrenew Residential, Commercial Residential, or Commercial Property Insurance due to historic flooding. Emergency LAC 37:XI.5101 dated 9-13-2016
Louisiana issued an executive order amending Executive Order No. JBE 16-58, which transferred limited authority to the DOI to suspend provisions concerning insurance policy cancellation, termination, nonrenewal and/or reinstatement due to a state of emergency because of heavy rain and flooding. Executive Order JBE 16-67
Massachusetts issued a bulletin regarding procedures for insurers' adjusters when handling property claims that were a result of a natural or man-made disaster. Bulletin 16-11
Oregon issued a bulletin clarifying prohibitions against unfair discrimination related to transgender persons. Bulletin 2016-1
California amended its law expanding consumer options to receive electronic documents. AB 2591
California enacted legislation to clarify that a digital signature may be used to satisfy requirements of an electronic signature under the Uniform Electronic Transactions Act. AB 2296
FIRST CONSULTING OFFERS COMPLIANCE TRAINING FOR HOME OFFICE STAFF
Anti-Fraud, OFAC, and Privacy - Training is designed for Underwriters, call center personnel, claims handlers, others working with customers and data.
Click here to learn more about the specific details of each course.
New Jersey amended its regulations for Insurance Company Holding Systems to be consistent with the NAIC's Insurance Holding Company System Model Regulation. NJAC 11:1-35.1
California enacted a law concerning liability for epinephrine auto-injectors. AB 1386
Colorado has amended its regulation relating to hazardous substances and financial responsibility requirements regarding petroleum underground storage tanks. 7 CCR 1101-14 s 7-1
Missouri amended its law relating to livestock trespass. SB 844
Oklahoma enacted legislation creating the Physician Order for Life-Sustaining Treatment Act (POLST Act). This act provides civil and criminal immunity for physicians and health care providers who act in good faith and in accordance with reasonable medical standards when executing an Oklahoma standardized format POLST form in compliance with a health care decision of a person apparently having authority to make a health care decision for a patient. It also gives standards and requirements for information to be provided and requires physicians to discuss certain treatments under certain circumstances. HB 3017
New York amended its procedures relating to proposed rule-making and online posting of full text of rules and statements, effective January 1, 2017. 1 - AB 9612
Oklahoma issued a new order requiring electronic filings of all purchasing group registration forms and fees, effective November 1, 2016. Order Elec. Filing Purchasing Groups 16-0628-PRJ
California enacted omnibus insurance legislation that, among other things, updates its law to conform with the NAIC Insurance Holding Company System Model Regulation; allows for denial of a license application if the applicant is convicted of a felony or misdemeanor or if the applicant fails the license examination 10 times within a 12-month period; adds maturity dates for fixed annuities at the annuitant's 70th birthday or the 10th anniversary of the contract; requires more extensive rate history for long-term care insurance rate filings; and allows the Commissioner to establish an internet-based complaint filing system. Assembly Bill 2884
Oklahoma amended and adopted several sections, including among other things, types of courses for continuing education for certain licenses, cancellation language for vehicle protection product contract forms, and enterprise risk reporting for the Oklahoma Insurance Holding Company System Regulatory Act, all effective September 15, 2016. 365:25
Rhode Island enacted legislation providing for a reduction in premium tax for qualifying insurers if sufficient jobs are created by the industry in the state to offset the reduction. House Bill 8058
PROFESSIONAL LIABILITY INSURANCE
Puerto Rico issued a circular letter to all insurers authorized to transact Property and Casualty Insurance in Puerto Rico advising that a meeting of the Insurers Syndicate for the Joint Underwriting of Medical-Hospital Professional Liability Insurance is scheduled for November 15, 2016. The circular letter strongly urges insurers to designate an authorized representative to vote on behalf of the insurer. Circular Letter CC-2016-1891-AF
Massachusetts issued a bulletin for insurance companies and insurance company groups regarding annual pre-disaster preparedness survey requirements. Bulletin 16-10
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or industry practices? We can give you that! Click here to learn more.
SERVICE CONTRACTS / WARRANTY INSURANCE
Iowa amended provisions regarding motor vehicle service contracts. Chapter 23, “Motor Vehicle Service Contracts,” was rescinded, and new Chapter 104, “Motor Vehicle Service Contracts,” was adopted. 191-23.1 and 191-104.1 +
Iowa amended provisions regarding residential service contracts. The Insurance Division rescinded Chapter 54, “Residential Service Contracts,” and adopted new Chapter 103, “Residential Service Contracts". 191-54.1 and 191-103.1 +
Alaska issued a bulletin regarding the whitelist of eligible surplus lines insurers in the State of Alaska. Bulletin B 16-07
Iowa amended certain surplus lines requirements. Included are provisions for electronic delivery of specified surplus lines notices and clarification of provisions requiring surplus lines insurers to pay premium tax if surplus lines producers fail to pay the tax. 191-21.1 +
New Jersey issued a new order confirming that no modifications are being made at this time to the current Surplus Lines Insurance Exportable List. Order A16-118 dated September 6, 2016
Tennessee issued a bulletin to all surplus lines agents, industrial insureds, and independently procured coverage filers pertaining to filing and payment of all surplus lines policies and premium taxes. BULLETIN 16-04
Colorado amended its regulations regarding Workers' Compensation rules and procedure, effective January 1, 2017. 7 CCR 1101-3 Rule 16
Delaware amended its Workers' Compensation law regarding compensation as exclusive remedy. HB 308 and 19 s 2304
Kansas issued a bulletin to insurers writing Workers' Compensation to call attention to the requirements found in the Kansas Fairness in Private Construction Contract Act dictating that a provision in a contract for private construction may not purport to waive subrogation rights for losses covered by a workers compensation insurance policy. Bulletin 2016-1
Missouri amended its law relating to Workers' Compensation large deductible policies. HB 1763
Nevada amended requirements relating to industrial insurance. Changes are made to many provisions which, among other items, concern transfer of claim files, submission to an insurer of correspondence and other documents, written request for a determination, purchase of a modified motor vehicle as an accident benefit, recordkeeping requirements and maintenance of claim, vocational rehabilitation, rating evaluations performed by a physician or chiropractor. 616B s 1 (R130-14)
Oklahoma amended its Workers' Compensation Optional Deductible Acceptance/Rejection Form and added provisions regarding mega deductible workers' compensation policies and loss runs/claims history. 365:15-1-3.1 +
Oklahoma modified Oklahoma Workers' Compensation Commission rules. Among the changes are revisions to medical services requirements and proof of coverage requirements. 810:1-1-3
Oregon amended its representation by counsel regulation to refer to "parties that are not natural persons" instead of "corporation" effective November 1, 2016. OAR 438-006-0100
Oregon issued a bulletin notifying Workers' Compensation insurers and self-insured employers of Retroactive Program benefits, effective October 1, 2016. This includes annual increase in Retroactive Program Benefits and the methods used to calculate the benefits and determine the amount of reimbursement. Bulletin 375
Washington amended provisions regarding Workers' Compensation pertaining to volunteers. 296-17-35201
Our knowledgeable staff can assist you and your staff with the latest program or form revisions.
We can help whether you have exclusive programs or are using bureau forms for any line of business. Product changes involve various steps, First Consulting can help with:
- Marketplace research
- Comparison of forms
- Drafting forms for new programs
- Drafting forms for product innovations like drones, cyber, sharing economy, etc.
- Tweaking forms or endorsements to provide additional options
- Providing filing packets to regulators
- Submitting filings through SERFF
Please click the following link for a brief overview of our Product Development and Drafting services, http://www.firstconsulting.com/services/product-development.
Feel free to contact me so we may discuss a practical approach to your drafting and filing needs.
Ever wanted someone or a resource for questions on filings, marketing compliance, or industry practices?
We can give you that!
Our “general compliance” account – we call it the “Help Line” – means you can call or email us, and we respond within 24 hours!
Disclaimer: No legal advice. Practical input for your compliance puzzles and questions based on our industry expertise.
Call or email me for details and we’ll get you set up for our Help-Line!
C. J. Rathbun, FLMI, CCEP, HIA, AIRC