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 LICENSING AND APPOINTMENT
Alaska issued a bulletin rolling out its new electronic license issuing and renewal process. The new system will keep track of continuing education credits electronically. The bulletin also outlines what must be contained in continuing education courses. Bulletin B 13-11
Puerto Rico issued a letter advising that beginning on December 20, 2013 Department licensees will have to use National Insurance Producer Registry (NIPR) to register change of address as well as the appointment and cancellation of appointment of their authorized representatives. Licensees will be responsible for entering the information into the NIPR. Circular Letter CC-2013-1844-SR
Wisconsin issued a bulletin advising appointment fee bills will go out shortly after 1/1/2014. All payments must be made via EFT on the Department's website and are due by 7/1/2014. Bulletin Dated 12/10/2013
Nevada issued a revised bulletin concerning filing arbitration clauses. Any insurer submitting a policy or endorsement for approval by the Department that includes a mandatory arbitration provision must also submit the authorization that the insured has given affirmative approval of the arbitration provision. Bulletin 13-008R
CANCELLATION, NON-RENEWAL, PREMIUM OR COVERAGE CHANGES
Washington issued a bulletin about motor carriers' liability. Among other things it states that a motor carrier or the carrier's insurance company must notify the commission of any cancellation or expiration to the carrier's coverage by filing a notice of cancellation no less than 30 days before the cancellation or expiration effective date. 480-14-250 Dated 11-15-2013
CERTIFICATE OF AUTHORITY
Puerto Rico announced beginning 1/1/2014 it will be mandatory that companies desiring admission into the Commonwealth use the Uniform Certificate of Authority Application issued by the NAIC. Ruling CN-2013-167-AF
CROP HAIL INSURANCE
Iowa issued a bulletin that replaces Bulletin 13-05. The new bulletin provides rules for crop-hail insurance rate and form filings. The bulletin details filing instructions for rates and forms. Bulletin 13-08
DISASTER OR CATASTROPHIC EVENT
Illinois provided exemptions for consumers in disaster areas for thirteen counties. It among other things, includes moratorium on cancellations and nonrenewal, time-period extension for repairs, insurance-related time-period extensions and exceptions to policy or contract requirements or rating or underwriting rules. Insurers should post on their websites all actions taken to implement the requirements of this bulletin. Bulletin 2013-18
Florida issued a rule to provide the format for proof of insurance cards and to incorporate changes that allow for electronic devices to be used as proof of insurance. FAC Rule 15A-3.006 Dated 12-11-2013
Wisconsin passed legislation to allow the electronic delivery of property and casualty notices and documents to an email address and through mobile applications. AB 373
California issued a bulletin advising the Department is increasing fees by 10% for all insurance producers, bail agents, insurance adjusters and insurers operating in the state effective 3/17/2014. The new fee schedule is on the Department's website. Bulletin 2013-3
Arkansas issued a rule which amends sections under Rule and Regulation 53. The amendment adds new standards the Commissioner can consider when making a determination as to a Company's financial condition. Rule and Regulation 53 dated 10/17/2013
Texas issued a bulletin requiring all insurers to report the number of policies in force as of December 31, 2013 to the Department by January 31, 2014. The policy count exhibit is necessary for the Department to calculate consumer complaint ratios. Bulletin B-0001-14
PROFESSIONAL LIABILITY INSURANCE
Illinois changed the sunset of the Medical Malpractice Act of 1987. It is now scheduled to be repealed on 12/31/2014. Senate Bill 1496
Louisiana issued a bulletin concerning deductible credits. All P&C insurers having current and Department approved residential property programs, must file with the Department or include in future rate filings an analysis to determine the actuarial adequacy and appropriateness of approved all-peril deductible credits, wind only deductible credits, wind exclusion credits and wind mitigation credits. The analysis must be submitted to the Department with the first rate filing after 1/1/2014. Bulletin 2013-08
Pennsylvania issued a notice increasing the surcharge dollar threshold to $1,550 effective July 1, 2014 on private passenger auto insurance. Insurers should file the change for prior approval by April 1, 2014 and specify an effective date of no later than July 1, 2014. Notice 2014-01
Puerto Rico published a ruling stating if an insurer is a member of or subscribes to a rating organization the insurer must abide by the filings made by the rating organization if the organization has been authorized to make filings on behalf of the insurer. Insurers must use the most recent versions of the programs approved for the rating organization as of their effective date and discontinue use of the substituted versions. Rule CN-2013-164-AP
South Carolina issued an order concerning the use of insurance catastrophe models in property insurance ratemaking. It requires that insurers who use such models in developing their rates, include the specified data regarding those models in their rate filings. Order 13-5 Dated 12-12-2013
Connecticut issued a bulletin to all accredited reinsurers regarding 2013 and 2014 financial filing requirements. Certificates of accreditation will be automatically renewed on June I, 2014, provided the company maintains the standards, and satisfies the annual filing requirements. Bulletin Number FS-4AR-13
Michigan issued a bulletin which supersedes Bulletin No. 2010-16-INS concerning risk-based capital (RBC) levels for insurers. The bulletin provides the requirements and deadlines for RBC reporting and adjustments and the submission of an RBC plan following a company action level event or regulatory action level event. The bulletin also discusses authorized control level events and mandatory control level events. Bulletin No. 2013-21-INS
Oklahoma issued a bulletin requiring all companies writing stop loss coverage to file their policy forms with the Department for prior approval. A property and casualty insurer may file an excess loss or risk policy as a contractual liability contract. The filing is exempt from prior approval if the requirements of the Commissioner's Order 07-1190-PMT are met. Bulletin No. PC 2013-11
Alaska issued a bulletin advising that the Quarterly Listing of Alien Insurers will be used to check if an alien company is an eligible nonadmitted insurance carrier. This will include Lloyd's syndicates. Bulletin B 13-10
Puerto Rico issued a ruling announcing new form OCSR28(C) (version 12-2013) to be completed by authorized insurers. The form contains a section where the authorized insurer will notify the surplus lines broker and the Department of its decision to accept or reject the circulated risk. Once the form is received as part of the risk circulation process it must be completed and emailed within 5 days of receipt. Ruling CN-2013-165-EX
Nebraska issued a bulletin requiring title insurers to conduct onsite reviews of the underwriting, claims and escrow practices of all title insurance agents that have conducted business in Nebraska for the preceding year. The bulletin also specifies when a report must be submitted to the Department and when a report must be made available upon request of the Department. Bulletin CB-131
Texas issued an order requiring an assessment of $1.80 to each owner's policy and each loan policy issued in 2014. The purpose of the assessment is for insurer's to recoup the $2.5 million paid in assessments to the Texas Title Insurance Guaranty Association in 2013. Commissioner Order No. 2885
California issued a notice concerning profile audit review (PAR) and full compliance audit (FCA) performance standards. PAR performance standard for audits conducted in 2014 is 1.61895. Subjects with PAR performance ratings of 1.61895 or lower will be required to pay any unpaid compensation, but no penalties will be assessed. If the PAR performance rating is 1.61896 or higher the audit will expand to an FCA. FCA performance standard for audits conducted in 2014 is 1.83494. Subjects with an FCA performance rating of 1.83494 or less will be required to pay any unpaid compensation and penalties will be assessed for violations. DWC Notice dated December 12, 2013
California published a notice that details the factors contributing to either reductions or increases in fees and assessment rates for insured employers and self-insured employers. The notice specifies that insurers must pay the assessment for policyholders and recover those funds from the policyholder via policy surcharges and assessments. DWC Notice dated November 27, 2013
New York issued a bulletin providing guidance on the extension of worker's compensation benefits for World Trade Center workers. Bulletin WV 46-651
ASK ME ABOUT CO-SOURCING
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