Property and Casualty News
January 2016
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.
ADJUSTERS
Texas has issued a bulletin regarding the required annual affidavit for nonresident public insurance adjusters license holders. Bulletin B-0032-15
AGENT / PRODUCER CONTINUING EDUCATION
Delaware has revised the requirement for continuing education for agents, brokers, and consultants, specifically relating to flood insurance. Any licensee who writes flood insurance must complete a 2 hour course. Licensees who have held a continuous license for 25 or more years will receive certain credits. Effective December 11, 2015. 504 s 8.0
Ohio amended its rule regarding the carry-over of excess continuing education credits to the next renewal period for agents. Rule 3901-5-01 Dated 10-28-2015
Tennessee has issued a new Interpretive Opinion concerning immigration bond producer licensure requirements. Interpretive Opinion No. 09-15
AGENT / PRODUCER LICENSING AND APPOINTMENT
Alabama will now require documentation of citizenship for all individual applications and renewals (both resident and non-resident). The requirement was effective December 15, 2015 for initial applications. Documentation will be required during renewals for licenses that expire February 29, 2016 and after. Bulletin 2015-07 12-11-15
Texas issued a bulletin notifying individuals required to submit fingerprints to the Texas Department of Insurance in connection with licensing or submission of biographical information that the cost and locations for obtaining fingerprint services changed effective December 1, 2015. Commissioners Bulletin B-0030-15
Wisconsin issued a bulletin relating to initial and renewal insurance agent appointments. Bulletin dated December 16, 2015 (A)
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AUTOMOBILE INSURANCE
Delaware has issued a reminder about personal injury protection subrogation claim requirements, due to several carriers disregarding these requirements. Carriers could face administrative action if it is determined that a carrier has a pattern of failing to adhere to these requirements. Domestic-Foreign Insurers Bulletin 82
Kentucky has adopted regulations regarding transportation network companies. Changes include, but are not limited to, elimination of some exemptions for sole proprietors, bulk vehicle registration and renewal, and clarification of insurance coverage requirements. The changes were effective January 4, 2016. 601 KAR 1:113
Louisiana has permanently implemented the emergency regulation requiring a surety bond of $20,000 for driving schools. LAC 55:III.146
Oregon amended its regulations regarding lower limits for uninsured motorist insurance coverage and notifications insurers must send when denying charges for certain personal injury protection (PIP) benefits. OAR 836-054-0000 Dated 10-01-2015
CAPTIVES
Connecticut published a bulletin to all captive insurers domiciled in the state, branch captives licensed to transact business in the state and risk retention groups formed as captives doing business in the state of financial reporting requirements for 2016. Bulletin No. FS-4C-15
Hawaii published a chart containing filing requirements for captives in 2016. A fee of $500 can be assessed for every day of non-compliance. Memorandum 2015-4C
COMMERCIAL LINES INSURANCE
North Dakota amended its rules regarding inspection and inspection certficates for boiler and unfired pressure vessels. 45-12-02-01 Dated 06-12-2015
CREDIT FOR REINSURANCE
North Dakota amended its regulations regarding the Credit for Reinsurance Model Regulation. 45-03-07.1-01 Dated 06-12-2015
CREDIT INSURANCE
Colorado has revised the requirements relating to credit insurance. Changes include definitions, rates, benefit standards, termination and rate sections. The changes are effective February 1, 2016. 3 CCR 702 Reg. 4-9-2
FINANCIAL REGULATION
Connecticut published a bulletin to all accredited reinsurers regarding 2015 and 2016 financial reporting requirements. The bulletin provides deadlines and instructions. Bulletin Number FS-4AR-15
North Dakota amended its regulation regarding accounting practices and procedures and reporting of financial information for property and casualty insurance to require use of the March 2015 version of the NAIC accounting practices and procedures manual. 45-03-15-01 Dated 06-12-2015
HOLDING COMPANIES
Arkansas has added requirements relating to holding companies, specifically the enterprise risk reporting requirements, so that they conform to the NAIC's Insurance Holding Company System Model Regulation with Reporting Forms and Instructions. Rule and Regulation 15
Michigan has revised the forms used by insurers related to the Holding Company Act. Updated forms are required and penalties for non-compliance are provided. Order No. 2015-061-M
Missouri has implemented an emergency measure relating to the NAIC’s Insurance Holding Company System Model Regulation with Reporting Forms and Instructions, which will become an accreditation standard in 2016. The measure was effective January 1, 2016 and expires June 29, 2016. Emergency 20 CSR 200-11.101 dated 1-1-2016
LIABILITY INSURANCE
Missouri has established limits for liability with regard to sovereign immunity for public entities in their state. The change was dated January 4, 2016 but effective January 1, 2016. 2016 Sovereign Immunity Limits
New York amended its rule regarding bond or liability insurance requirements for appearance enhancement businesses. 19 NYCRR 160.9 Dated 12-08-2015
The Department of Homeland Security amended regulations regarding liability limits for vessels, deepwater ports, and onshore facilities. Effective December 21, 2015. 33 CFR 138.200, 210, 220, and 240
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MISCELLANEOUS PROPERTY / CASUALTY
Texas has amended its regulations regarding assessments for maintenance taxes and fees for certain types of motor vehicle insurance, casualty insurance and fidelity, guaranty, and surety bonds, fire insurance and allied lines, including inland marine, workers' compensation insurance, and title insurance. 28 TAC §1.414
PREMIUM TAX
Arkansas requires 2016 Estimated Quarterly Premium Tax filings be completed using the OPTins website. The 2015 filing process has not been changed. Bulletin 19-2015
Florida amended rules relating to premium taxes, specifically revising forms involved in tax payments and schedules. The changes were effective January 11, 2016. FAC Rule 12B-8.003
PROFESSIONAL LIABILITY INSURANCE
Puerto Rico has issued a new rule concerning the reporting of statistical information on medical-hospital professional liability. Ruling CN-2015-193-AF
RATEMAKING
Illinois reported that the state will not bar the use of price optimization by insurers.
Missouri has issued Insurance Bulletin 16-02 to Missouri insurers prohibiting the use of certain "price optimization" practices in personal lines ratemaking. Bulletin 16-02
REGULATORY REPORTING REQUIREMENTS
New Hampshire amended its regulation regarding reporting of statistical data for property and casualty insurance companies. Ins 801.01 Dated 09-17-2015
Virginia has amended its regulations relating to annual financial audits and internal audit function requirements. 14 VAC 5-270-40 Dated 10-19-2015
SERFF FILINGS
Missouri adopted the requirements of the System for Electronic Rate and Form Filing (SERFF) for submission of documents and reports to the Insurance Department. The adoption is effective January 30, 2016. 20 CSR 100-9.100
Texas published a bulletin announcing it will provide viewing access to rate and policy form filings via SERFF effective January 1, 2016 for filings received by the Department after April 14, 2014. Commissioner's Bulletin B-0028-15
PRODUCT FILING ASSISTANCE
More than likely your organization has new production goals for 2016. Whatever the need for any
line of business or any type of program, our affordable services can assist in your filing activities.
Additionally, we can file on our SERFF account/instance or the SERFF account/instance of an insurance company.
Click here to learn more.
SERVICE CONTRACTS / WARRANTY INSURANCE
Alabama has adopted the specific manner for which service contract provider fee changes are determined, including calculation and frequency. The regulation is effective April 1, 2016. 482-1-160-.01 dated 10-30-15
SOLVENCY / FINANCIAL CONDITION
Wisconsin issued a bulletin to clarify minimum direct premium written to surplus ratio requirements. Bulletin dated December 7, 2015
TITLE INSURANCE / AGENTS
New Mexico amended requirements relating to title insurance, title insurance agents, certain licensing requirements, agency appointments and terminations, endorsements, binders, escrows and escrow officers, updated forms, reporting requirements, reconciliations, and financial records. 13.14.1.1 + NMAC
Utah has repealed its rules regarding title insurance administrative hearings and penalty imposition. Rule R592-2-1 Dated 10-01-2015
WORKERS' COMPENSATION
Georgia revised regulations relating to Workers' Compensation, specifically medical case management. Qualified case managers can be used for claims for non-catastrophic injuries. The change was effective January 1, 2016. Rule 200.2
Louisiana has revised the requirements for payment of uncontested portions of a medical bill must be paid within 30 days after bill was received. This is a reduction of the prior 60 day requirement. LAC 40:I.311
Maine has revised regulations for Workers' Compensation relating to self-insurers. Changes include definitions, qualifications, application process, and effective dates. Insurance Rule Ch. 730
Pennsylvania has issued a notice regarding Workers' Compensation loss cost filings. Notice of December 19, 2015
South Carolina has approved the 2016 Workers' Compensation Weekly Compensation Rates. WC Notice of Weekly Compensation Rates Dated 12-15-2015
Tennessee adopted new rules regarding Workers' Compensation Medical Treatment Guidelines. 0800-2-25- .01 - .04
Tennessee has approved an order regarding Workers' Compensation loss costs and rating values filing. WC Notice of November 23, 2015 (B)
Tennessee has issued an order establishing assigned risk plan multiplier for Workers' Compensation. WC Notice of November 23, 2015 (A)
Texas has amended its regulation regarding examination assessments of domestic and foreign insurance company and self-insurance groups providing Workers' Compensation Insurance. 28 TAC s 7.1001
Texas has issued a new bulletin regarding the repeal of the Texas Retrospective Rating Plan Manual for all insurance companies or other insurers writing Workers' Compensation and Employers' Liability Insurance. Bulletin B-0031-15
Utah has amended its rule regarding policy reporting by Workers' Compensation insurance carriers. Rule R612-400-1 Dated 10-15-2015
Utah has amended its rules regarding medical fees and the general method of calculating medical fees for Workers' Compensation. Rule R612-300-5 Dated 10-15-2015 and
Utah updated the effective date for its current workers' compensation premium rates for the Uninsured Employers' Fund and the Employers' Reinsurance Fund. Rule R612-400-5 Dated 10-14-2015
Virginia issued an emergency measure relating to Workers' Compensation and the determination of prevailing rates for certain rendered medical services to injured workers. Emergency 16 VAC 30-50-150 Dated 12-28-2015
Washington has amended its regulations regarding the classification premium base rates for Workers' Compensation. 296-17-855 Dated 09-22-2015
Wisconsin amended certain regulations for Workers' Compensation. The changes are minor and provide clarification. DWD 80.02, DWD 80.49, DWD 80.61-62, DWD 80.65, and DWD 80.73
SERFF FILINGS
We hope 2016 will be a TERRIFIC YEAR for you.
- A New Year brings new goals….
- New goals lead to new priorities….
- New priorities lead to new projects and focus….
More than likely your organization has new production goals for 2016. Your production goals may involve many departments and individuals to help carry through on project activities. Policy forms, rates and rules may need to be revised to increase your production results. You may have a new niche market you would like to pursue or a change to an existing product. Whatever the need for any line of business or modification to any type of program, we can assist in your filing activities.
Our affordable services include filings for all lines of business, even if you drafted your own forms. We can file on our SERFF account/instance or the SERFF account/instance of an insurance company.
Filings can be made easy with our co-sourcing philosophy. Please click here for a brief overview of our filing service.
Joe Bieniek
816.512.2832
Joe.Bieniek@FirstConsulting.com
COMPLIANCE TRAINING FOR ALL LINES OF INSURANCE
Finally, Compliance Training developed specifically for the Insurance industry, by members of the Insurance industry! Four distinct topics: Anti-Fraud, Anti-Money Laundering (AML), Office of Foreign Assets Control (OFAC) and Privacy.
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- accessible online from desktop or laptop 24/7 or via webinar
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Visit our website or contact me to learn how we can assist you with Compliance Training or to enroll in a free demo!
Carol Stern, FLMI, AIRC, ACS
816.391.2746
Carol.Stern@FirstConsulting.com