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.
Delaware amended its motor vehicle law relating to driver's licenses, driving under the influence and ignition interlock device requirements. HB 212
Illinois amended its Insurance Code section for Uninsured and hit and run motor vehicle coverage. The change addressed decisions made in binding arbitration, setting a limit of $75,000.00 for bodily injury to or death of one person or $150,000.00 for bodily injury or death of 2 or more persons in a single accident or the corresponding policy limits for bodily injury or death, whichever is less. HB 5575
Louisiana announced that the 2014 Conference on Insurance Fraud and Auto Theft will take place on October 15, 2014 in Baton Rouge. Website announcement
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
Delaware amended requirements concerning cancellation and nonrenewal notices. For specified lines of insurance, proof of mailing must be retained for at least 1 year. For homeowners insurance, changes were made to provisions concerning an insurer's refusal to renew a policy. HB 161
CERTIFICATE OF AUTHORITY FILINGS
California released a notice to all admitted insurers and interested parties regarding corporate applications and similar filings needing CDI approval by the end of 2014. Applications must be submitted no later than September 12, 2014, or, in the case of holding company applications, not latter than October 24, 2014. Only perfected applications will be considered eligible for expedited review. Notice dated August 6, 2014
COMMERCIAL LINES INSURANCE
California enacted legislation requiring that residential care facilities for the elderly maintain specified amounts of liability insurance covering injury to residents and guests. The requirement exempts facilities that are an integral part of a continuing care retirement community. Assembly Bill No. 1523
South Carolina issued a bulletin providing notice of tentative credit property insurance rates and the opportunity to request a hearing. Bulletin 14-09
DATA CALLS / REGULATORY REPORTING
Pennsylvania issued a notice to companies licensed to write motor vehicle insurance in the Commonwealth reminding them of the private passenger data call due to be submitted no later than October 15, 2014 and providing instructions for its completion. Notice dated August 9, 2014
DEPARTMENT OF INSURANCE
Missouri announced its upcoming Department of Insurance Director's Regulatory Summit which takes place on October 15, 2014. DOI Website announcement
DISASTER / CATASTROPHIC EVENT
Connecticut issued a bulletin to all insurers, licensees and interested parties stating its position regarding the processing of claims and related matters for insured disaster victims throughout the duration of the Governor's declaration in a weather-related event or other disaster. Bulletin IC-31
New Jersey published a bulletin providing guidance to insurers regarding pre- and post-disaster regulatory activity, including, but not limited to, issuance of bulletins and/or orders under the Commissioner's emergency powers. Bulletin 14-08
Delaware revised its statutes to more closely follow the NAIC Model Law - Insurance Holding Company System Regulatory Act. HB 257
ORSA: OWN RISK AND SOLVENCY ASSESSMENT
Illinois amended its statutes regarding Own Risk and Solvency Assessment, revising the Purpose and Scope statement, changing some reporting deadlines, adding definitions, addressing confidentiality and specifying penalties for certain delays, among other changes. HB 4725
Illinois amended its Insurance Code regarding Mine Subsidence Coverage, requiring that a policy issued or renewed provide coverage unless waived in writing by the insured and the insurer must continue to charge the premium level set by the Fund. Further, if mine subsidence becomes reasonably observable while coverage is in force, the insurer is required to notify the insured making a claim that continuation of the coverage thereafter may not be necessary. SB 3504
Colorado issued a bulletin regarding inspection, copying and procurement of public records at the Division of Insurance. It specifies hours available, provides information about obtaining copies, specifies fees and charges for various services, and lists categories of information the Division maintains. Bulletin B-1.6
Oregon announced that all insurance rate and form filings available for public review are now accessible through their website, which is linked to a SERFF interface. Website announcement
RISK RETENTION GROUPS
Nevada issued a bulletin providing the required format for business plans and pro forma financial statements for risk retention groups. Bulletin 14-007
SERVICE CONTRACTS / SERVICE WARRANTY INSURANCE
Puerto Rico's Insurance Commissioner issued a ruling regarding the offering of contracts that promise to pay a certain amount of money in the event f theft or damage of a vehicle covered by the contract. Ruling CN-2014-183-CM
Alaska issued a bulletin announcing its adoption of regulations modifying surplus lines requirements to follow statutory changes due to the federal Nonadmitted and Reinsurance Reform Act of 2010. Modifications to the diligent search requirements, additional requirements for notices of nonrenewal and premium increases and fees for the new portable electronic limited producer licenses are mentioned. Bulletin B 14-05
Delaware issued a bulletin specifying a surplus premium tax rate increase from 2% to 3% and stating that new forms for policy reporting were to be released on August 15 to the Department website. Surplus Lines Bulletin 14
California amended its Buyer's Choice Act, which includes certain prohibitions on requiring a buyer to purchase title insurance or escrow services, to delete the repeal of the Act's provisions, making them operate indefinitely. SB 1051
New Mexico issued a bulletin regarding the Superintendent's Order for Issuance of Refunds to Title Insurance Purchasers which requires all title insurers doing business in the state to complete the spreadsheet attached to the bulletin and return it electronically no later than January 15, 2015. Any funds not refunded to title insurance purchasers pursuant to the Order are to be remitted to the state as unclaimed property by January 16, 2015. Bulletin 2014-012
California amended its Labor Code relating to Workers' Compensation. Requirements applicable to utilization review procedures were revised and the employers of injured workers are required to pay lien filing/activation fees under certain conditions, among other changes. AB 2732
First Consulting can help with UCAA filings
Click here for information on how we can assist with obtaining additional state licenses or authority and with 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.
Are you ready for ORSA?
The fall state legislative season will soon be heating up and we anticipate a rush to get new laws proposed and approved by the end of 2014 or early 2015 in order to meet the NAIC effective date.
NAIC made the adoption of the ORSA Model part of a Solvency Modernization Initiative (SMI) putting serious pressure on states to adopt this model expeditiously. Most states are telling companies the filing of the ORSA Report (required for companies with over $500 million in premium) will have a third quarter 2015 deadline. Even if your company does not have to file the ORSA report, implementation of the Enterprise Risk Management (ERM) framework is something you will want to consider since the rating agencies have begun asking to see this documentation.
First Consulting can help your company with ORSA readiness. The ERM Starter Kit and ERM Tool Kit contain template policies, procedures, committee charters and reports. Remember even if you have an ERM program today, you might need to revise your current Board of Directors risk committee charter, risk policy and other key documents for ORSA.
Check out the full description of our ERM/ORSA Comprehensive Consulting services here:
Please feel free to contact me to discuss any of these services.