Property & Casualty News September 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.


AUTOMOBILE INSURANCE

Colorado readopted and revised an emergency rule concerning automobile insurance consumer protections.  Revisions were made to the section providing rules limiting insurers' action to refuse to write, cancel, nonrenew, increase premium, surcharge or reduce coverages.     3 CCR 702 Reg. 5-2-12

Colorado reissued a bulletin providing guidance to insurers issuing cancellation, non-renewal, increase in premium, or reduction in coverage notices of intended action for private passenger automobile insurance.  The bulletin describes the information to be provided in such notices.     Bulletin No. B-5.29

Pennsylvania issued a data call advising that companies with private passenger automobile direct written premium in 2011 are required to submit data no later than October 15, 2012.     2011 Private Passenger Automobile Data Call


CAPTIVE INSURANCE COMPANIES

Delaware issued a bulletin concerning fees levied on captive insurance companies for the formation of Series Business Units.     Captive Insurance Bulletin


CERTIFICATES OF INSURANCE

Wisconsin issued a bulletin to clarify the proper use of certificates of insurance.  The bulletin provides suggested disclosure language and encourages insurers to share the bulletin with their agents.     Bulletin dated August 27, 2012


CLAIMS

Puerto Rico issued a ruling letter to remind insurers that they have a 90-day period to adjust, investigate, and resolve claims. If the insurer can not resolve the claim within this time period, the insurer should conserve documents showing just cause in the case record. The ruling letter explains what the Commissioner's Office considers to be just cause.     Ruling Letter 2012-145-D


CORPORATE APPLICATIONS
California issued a notice regarding corporate applications and similar filings requesting department approval by year-end 2012.  The notice provides due dates for submission of such applications, describes characteristics of a perfected application, and advises that applications for a certificate of authority or an organizational permit will not be eligible for year-end completion in most cases.     Notice of Year-End Review Procedure


DISASTER AND EMERGENCY OPERATIONS
Florida issued an informational memorandum to advise insurers that hurricane deductibles do not apply to property losses associated with a Tropical Storm/Hurricane Isaac damage claim that occurred prior to Tuesday, August 28, 2012, at 11:20 A.M. CDT.     Informational Memorandum OIR-12-05M

Louisiana issued an emergency rule to address concerns resulting from Hurricane Isaac and provide for suspension of certain requirements regarding cancellations, non-renewals, reinstatements, premium payments and claims.     Emergency Rule 26


FILING REQUIREMENTS
Virginia issued an administrative order suspending filing requirements for certain commercial manuscript forms and associated rates.  The order also provides notice and record retention requirements.     Administrative Order No. 11936


GUARANTY ASSOCIATION
New Jersey issued an order concerning the premium surcharges that insurers may impose to recoup assessments paid to the state's Property-Liability Insurance Guaranty Association.     Order A12-108


HAZARDOUS FINANCIAL CONDITIONS
Texas amended its rule concerning hazardous conditions and remedy of hazardous conditions to make it more consistent with the NAIC model regulation.     Rule 28 TAC 8.3


HOMEOWNER'S INSURANCE
Delaware added requirements concerning the notice to be provided to residential property insurance policyholders regarding the existence of separate deductibles for losses caused by wind, hail or hurricanes.   Timing, format and content requirements are provided.     18 s 4140

Maryland issued a bulletin to clarify the applicability and content of the notice required by Ins. s 19-214 (described in the July 2012 edition of this newsletter), which applies to all homeowner’s insurance policies issued or renewed on or after October 1, 2012.     Bulletin 12-16


MISCELLANEOUS
Hawaii adopted changes requiring property and casualty insurance companies to make annual filings of a statement of actuarial opinion submitted in accordance with the applicable NAIC Property and Casualty Annual Statement Instructions.     16-169-10 through 16-169-13

Iowa amended certain dramshop liability insurance requirements.  Changes include the addition of a description of the contents of the dramshop liability certificate of insurance.     185-5.8

Maryland issued a bulletin describing the introduction of an electronic distribution system to notify interested parties about the availability of new bulletins and other communications on their website.     Bulletin 12-17

Massachusetts approved changes pertaining to animal control including a provision authorizing certain authorities to order the owner or keeper of a dog deemed dangerous to provide proof of insurance in an amount of no less than $100,000.     Senate Bill 2192


POLICYHOLDER NOTICES
Massachusetts enacted legislation concerning policyholder notice requirements when an insurer within the same group of insurers issues a succeeding policy.   The insured must be notified in writing of any changes in coverage from the preceding policy.  Notice is not required if coverage is provided on the same terms and conditions as the previous policy.     House Bill 3791, 175:113, 175:193P


PORTABLE ELECTRONICS INSURANCE
Illinois amended requirements concerning the maintenance of a registry of vendor locations that are authorized to sell or solicit portable electronics insurance coverage. Termination notice requirements were also revised.     215 ILCS 136/10; 215 ILCS 136/30


PREMIUM TAX
California established provisions to enable an admitted insurer to pay premium taxes on either an accrual basis or a cash basis.     Regulation 10 CCR Sec. 2327+

Colorado amended a regulation concerning enterprise zones credit against premium tax and added sections on applicability, filing requirements, enforcement and severability.     3 CO ADC INS 3-1-5

New York adopted an Emergency Regulation amending provisions on empire zones, including sections on empire zone tax credits.     Emergency Regulation 5 NYCRR 10+

Wyoming issued a bulletin regarding the implementation of the NAIC's OPTins for the submission of required filings and payments.  The Department encourages the use on OPTins, but does not require it.     Memorandum 03-2012


PRIVACY
New York amended its law to prohibit private businesses from requiring individuals to disclose their social security number. Certain exemptions are provided including use consented to by the individual and use expressly required under federal or state law.     Assembly Bill 8992


PRODUCERS
New York amended provisions to permit a license period of greater than two years for new applicants, provided that such term does not exceed 30 months.     Senate Bill 2704

Oklahoma added a notice to the Licensing and Education page on their website regarding a new Oklahoma insurance licensing exam effective November 1, 2012.     New Oklahoma Insurance Licensing Exam Notice


REBATING
New York amended provisions pertaining to anti-rebating. The description of acceptable valuable consideration is revised to include periodical subscriptions, the maximum value is increased from $15 to $25, and the requirement that the advertisement of the insurer, agent or broker be "conspicuously stamped or printed thereon" is deleted.     Ins. Law s 2324 Ins. Law s 2324


REINSURANCE
Delaware amended its Code to conform to provisions of the NAIC Credit for Reinsurance Model Act.     House Bill 346


REPORTING REQUIREMENTS
Kentucky issued an order instructing property and casualty insurers authorized to write homeowner's and private passenger automobile insurance to provide updated information regarding premiums based on previously filed rates and rules for these coverages.     Order of August 14, 2012


TELEMARKETING
New York made several changes to telemarketing statutes. Included is a provision prohibiting prerecorded telemarketing messages if the recipient has not expressly consented to receive such calls.     Assembly Bill 10569   


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Don’t face them alone with in-house staff or give-up control to cookie-cutter outsourcing.
 
We work with your staff when you need us, in whatever manner best suits the needs of your Company, without being a fixed expense. We understand that each Company is unique. Many projects have quite different requirements. Through it all, however, your staff remains responsible for results and maintains control.

First Consulting recognizes that your Company’s unique needs require unique solutions.

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816.391.2744
john.palmer@firstconsulting.com

 



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