Property and Casualty News
August 2015
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
Maryland issued a bulletin to clarify the circumstances under which a licensed and appointed producer may pay a referral fee, split a commission, or offer other valuable consideration to a licensed but non-appointed producer in exchange for a referral of an insurance applicant. Bulletin 15-22
AUTOMOBILE INSURANCE
Connecticut amended its notice of cancelled automobile insurance provisions to incorporate online insurance verification system provisions. 38a-343a
New Hampshire has authorized the sale of GAP waivers and setup procedures for the sale of such waivers. The change is effective September 4, 2015. Senate Bill 119
Rhode Island has amended the requirements for auto body repair rate surveys, specifically requiring separate surveys for each auto body shop classification. This is intended to prevent unfair competition. The changes are effective January 1, 2016. House Bill 5491
Washington has expanded 46.52.130(2)(g) and now allows an individual's attorney the ability to receive that person's abstract of driving record. The change is effective September 26, 2015. House Bill 1276
CAPTIVES
Delaware issued an advisory memorandum providing rationale for the amendments to the captive laws contained in House Bill 15 and to provide an explanation for how these amendments will be applied. Memorandum July 10, 2015
CLAIMS/CLAIMS ISSUES
Alaska issued a bulletin relating to the standards for prompt, fair and equitable settlements of motor vehicle and property claims. This bulletin replaces Bulletins B 10-04 and B 11-04, both of which are hereby revoked. Bulletin B 15-07
Florida amended its procedures for the resolution of disputed sinkhole insurance claims under the neutral evaluation program. FAC Rule 69J-8.009
CORPORATE GOVERNANCE
Louisiana amended and enacted legislation related to corporate governance of insurers and insurance groups, requiring corporate governance annual disclosures, providing for confidentiality of information and enacting sanctions for noncompliance. House Bill 199
DATA CALLS/REGULATORY REPORTING
Florida updated its annual and quarterly reporting requirements for all authorized insurers. FAC Rule 69O-137.001
FEE SCHEDULES
Connecticut advised that the 2015 workers' compensation practitioner fee schedule effective July 15, 2015 has been issued. Memorandum 2015-07
HIV
Illinois amended its requirements for the disclosure of test results for HIV by replacing the word "spouse" with spouse or civil union partner. HB 1004
LIABILITY INSURANCE
Oregon enacted legislation which adds definitions and establishes requirements for holders of marijuana related licenses. Licensees are required to maintain a surety bond or other deposit, and must have general liability insurance. House Bill 3400
MARRIAGE EQUALITY/CIVIL UNIONS / DOMESTIC PARTNERS
Kansas issued an executive order pertaining to the preservation and protection of religious freedom in regards to same sex marriages. Executive Order 15-05
Oregon enacted legislation to replace references to husbands and wives with gender-neutral terms. House Bill 2478
MISCELLANEOUS
Maryland issued a bulletin placing insurers, nonprofit health service plans, health maintenance organizations, dental plan organizations, pharmacy benefits managers, and producers (regulated entities) authorized to do business in Maryland on notice of certain laws passed during the 2015 Session of the Maryland General Assembly that are enforced by the Maryland Insurance Administration (“MIA”). Bulletin 15-20
MISCELLANEOUS PROPERTY/CASUALTY
Maryland issued a bulletin to rescind bulletin 10-26 and remind all Property and Casualty insurers of the amendments made to COMAR 31.08.12 - Temporary Moratoriums and Weather Events, which were effective as of April 14, 2014. Bulletin 14-15
ORSA: OWN RISK AND SOLVENCY ASSESSMENT
Louisiana enacted legislation providing requirements for maintaining a risk management framework by completing an own risk and solvency assessment (ORSA) and further provided guidance and instructions for filing the ORSA summary report with the commissioner. House Bill 255
Oregon enacted legislation establishing requirements for maintaining a risk management framework and provide guidance and instructions for filing an Own Risk and Solvency Assessment report. House Bill 2469
PREMIUM TAX
Colorado issued a bulletin providing surplus lines brokers with the procedures for reporting surplus lines premium tax. Bulletin B-2.10
Montana has enacted revisions to payment of fire premium tax. Insurers no longer need to submit justification when the reported premium is equal to or greater than the presumptively reasonable allocation. New Rule I dated 4-30-2015
PROPERTY INSURANCE
California amended its legislation relating to earthquake insurance. Any additional premium or deductible paid must be refunded to the insured and prorated as of the date the approved inspection record is received by the insurer once a dwelling is brought into compliance with Insurance code 10082.5. Senate Bill 335
TRAVEL INSURANCE
California adopted regulations pertaining to travel insurance agent licensing and provides requirements for application, disclosure requirements, maintenance of records of insurance transactions and documents and required forms. T. 10 s 2194.18, T. 10 s 2194.20, T. 10 s 2194.21, T. 10 s 2194.24, T. 10 s 2194.25, T. 10 s 2194.26
WORKERS' COMPENSATION
Alaska issued a bulletin that addresses the documentation an insurer may request of an insured when auditing a workers' compensation policy to determine the final premium. This bulletin identifies the type of records that insurers may require at policy audit. Bulletin B 15-08
California issued a notice advising that the Division of Workers' Compensation (DWC) will implement a new online panel process for represented initial panel requests on October 1, 2015. DWC will no longer accept or process paper submissions postmarked after September 3, 2015. The new process requires parties in a represented case to submit initial QME panel requests online and immediately receive a QME panel. The requesting party will then serve the panel request form, any required documentation and the QME panel on all parties with a proof of service. DWC Notice dated July 20, 2015 (B)
California issued a notice from the Division of Workers' Compensation (DWC) administrative director has adopted an order incorporating the Centers for Medicare and Medicaid Services (CMS) revised ambulance fee schedule rates and ZIP code files for services rendered on or after August 1, 2015. DWC Notice dated July 20, 2015 (A)
California issued a notice regarding a report on workers' compensation reforms showing benefit increases for injured workers and reduced costs to employers. DWC Notice dated July 23, 2015
Connecticut issued a bulletin advising that the Workers' Compensation Commission received shipment of its new Bulletin No. 51, amended to January 1, 2015, which is available free of charge. Bulletin No. 51 contains the entire Workers' Compensation Act, additional related statutes, workers' compensation administrative regulations, and illustrations of up-to-date workers' compensation forms. Memorandum 2015-06
Connecticut issued a memorandum to insurance carriers regarding amendments to medical protocols for treatment of injures to the knee. These revisions reflect the latest changes in the medical field regarding new procedures, treatments and diagnostic tests. Memorandum 2015-08
Idaho issued a notice to all workers' compensative insurance carriers to remind stakeholders of the requirements of Idaho Workers' Compensation law relating to deductible polices, and to reiterate the in-state adjusting requirements applicable to all sureties. Notice of June 15, 2015
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