Property and Casualty News
November 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 CONTINUING EDUCATION
Washington has amended its regulations regarding insurance continuing education courses attendance requirements. 284-17-281 Dated 08-12-2015
AGENT / PRODUCER LICENSING AND APPOINTMENT
Idaho issued a bulletin regarding requirements for licensed insurance producers using assumed business names (ABNs, also called DBAs) to file the appropriate forms and notifications with the Department and the Secretary of State. Bulletin 15-05
Oklahoma informed all credit insurers that a limited line credit producer license is required for all business entities that sell, solicit or negotiate credit insurance. Bulletin No. Producer 2015-01
Wisconsin posted a notice on the Office of the Commissioner of Insurance (OCI) website stating that the OCI will be moving its back-office system for processing licensing transactions to the State Based Systems (SBS) on December 14, 2015. All licensing transactions, including applications, will be temporarily suspended effective 11:59 PM on Monday, November 23, 2015 until December 14. The web address posted for information is: https://sbs-wi.naic.org/Lion-Web/jsp/sbsreports/CompanySearchLookup.jsp Notice on OCI website
AUTOMOBILE INSURANCE
Delaware has revised regulations regarding proof of automobile insurance. Identification cards are now allowed to be electronic, including on portable electronic devices such as cell phones. The changes were effective November 11, 2015. 606 s 1.0 Dated 08-17-2015
Georgia reimplemented chapter 120-2-14 of the GA Auto Insurance Plan. This includes changes to Governing Committee as well as technical changes to definitions, hearings, commissions, claims. Other sections were reimplemented with no changes. 120-2-14
Texas has issued a bulletin regarding Texas automobile insurance plan association rates. Bulletin B-0027-15
Texas has issued a new order regarding rate changes for private passenger and commercial automobile Insurance provided through the Texas Automobile Insurance Plan Association. No. 4151
Virginia has issued a new order regarding the adoption of a revised endorsement form to be used with standard automobile policies. Administrative Order No. 11994 and 11995
Virginia has issued a new order regarding the revised endorsement for use with the standard forms for commercial automobile policies. Administrative Order No. 11993
Virginia has issued an order stating that the Department of Insurance has approved a request to amend the Automobile Insurance Plan Manual to provide for writing insurance upon applicants being assigned by the Virginia Automobile Insurance Plan. Administrative Order No. 11998 and 11999
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
Maryland has amended the requirements for notices sent to policyholders as a result of premium increases to motor vehicle insurance coverage. The changes are effective March 1, 2016. COMAR 31.08.03.07 dated 8-21-2015
CAPTIVES
Nevada has issued a new bulletin regarding independent members of the board of directors for captive insurers. Bulletin 15-005
Utah updated a rule to define "Captive Insurance Manager," to specify that all captive insurance companies (with two specified types excepted) are to use the "Captive Insurance Company Annual Statement Form" and that companies are to file electronically. R 590-238
CLAIMS / CLAIMS ISSUES
Florida replaced procedures and requirements for mediation of personal property claims, replacing them with requirements for compliance with Florida law. FAC Rule 69O-166.031
New Hampshire has amended its regulation regarding claim settlement for all insurers including Property and Casualty Insurance. 1002.01-1002.07
CREDIT FOR REINSURANCE
Tennessee has issued a bulletin regarding credit for reinsurance obtained by captives from unauthorized reinsurers. Bulletin dated October 22 2015 (B)
CREDIT INSURANCE
South Carolina has issued an order regarding rates for credit property insurance sold in conjunction with loans. Order 15-4
CROP HAIL INSURANCE
Iowa has modified the annual deadline from March 15 to January 31 for crop-hail insurance rate filings. The change is effective December 2, 2015. 191-20.8
North Dakota has issued a bulletin regarding filing and marketing of crop hail insurance for 2016. Bulletin 2015-2
DATA CALLS / REGULATORY REPORTING
North Carolina issued a bulletin effective immediately for financial statements as of December 31, 2015 and replaces Bulletin Number 14-B-08. This bulletin is intended to communicate certain reporting requirements of the Annual Financial Reporting Law. Bulletin 15-B-5
Puerto Rico required that all domestic insurers, health services organizations, producers, adjusters, general agents, surplus lines brokers and authorized insurance consultants access the online service portal no later than March 31 of every year, so that they may file the annual business report and number of direct jobs generated in Puerto Rico. Circular Letter CC-2015-1857-AF Errata provides revisions to the first paragraph in the bulletin. Circular Letter CC-2015-1857-AF, Circular Letter CC-2015-1857-AF Errata
Texas has issued a mandatory data call to all insurance companies for third quarter experience for 2015 workers' compensation deductible plans. B-0024-15
DISASTER/CATASTROPHIC EVENT
New Mexico has issued a bulletin regarding a catastrophe declaration to the property and casualty insurers and adjusters. Bulletin 2015-026
Oklahoma has issued a bulletin regarding earthquake insurance. Bulletin No. PC 2015-04
South Carolina has issued a bulletin regarding emergency licensure of motor vehicle physical damage appraisers. Bulletin 15-06
South Carolina has issued an emergency measure relating to the severe weather conditions. R 69-77 Dated 10-8-2015
FINANCIAL REGULATION
Connecticut issued a bulletin regarding penalties to be assessed for late filing of annual and quarterly financial statements required to be filed with the Insurance Department. Bulletin FS-16-15
HOLDING COMPANIES
Alaska updated regulations regarding holding company systems. The changes are intended to conform to NAIC Model Regulation 450. Changes include an addition of a new Form F, revisions to other forms, definition changes, and repeal of various provisions. 3 AAC 21.010 +
District of Columbia has revised regulations that further implement the Holding Company System Act of 1993. The changes include enterprise risk reporting and additions of new forms. 26A DCMR 1602 Dated 07-24-2015
INSURER INVESTMENTS / SECURITIES
Nevada has issued a bulletin to remind insurers to comply with recent amendment to insurance laws regarding new defined limits for investments of domestic insurers. Bulletin 15-006
LIABILITY INSURANCE
Nevada has adopted a regulation regarding liability insurance coverage for operators and staff of drug and alcohol abuse programs. NAC 458.173 dated 10-27-2015
PERSONAL LINES INSURANCE
Connecticut issued a notice to insurers writing homeowners insurance advising that any non-renewal action taken by insurers must be strictly in accordance with underwriting guidelines and rules that are filed with and recorded effective by the Department. Notice dated October 6, 2015
PREMIUM ISSUES
New Hampshire has amended its regulations regarding fiduciary obligation of insurers. Ins 4301.01 Dated 08-06-2015
PRIVACY
California enacted legislation to clarify privacy breach reporting requirements, providing a model security breach notification form (in SB 570) and defining (in AB 964) "encrypted" as used in the requirements. AB 964 and SB 570
RATEMAKING
Delaware has informed automobile insurers that rate increases based purely on a change in marital status to widow or widower is prohibited. Rates that allow for a "widow's penalty" will not be approved. Auto Bulletin 23
Delaware has prohibited unfairly discriminatory rates, specifically price optimization. The Department refers to price optimization as varying rates on factors other than risk of loss in order to charge an insured the highest price possible. Domestic-Foreign Insurers Bulletin 78
REGULATORY REPORTING REQUIREMENTS
Virginia published an Administrative Letter that requires new Maintenance Assessment and special assessments reporting forms beginning with 2015. It replaces Letter 2014-01. Administrative Letter 2015-11
REINSURANCE
Arizona has enacted regulations relating to reinsurers, specifically certification, accreditation, and "qualified jurisdictions". Changes are effective November 30, 2015. R20-6-1601 Dated 10-23-2015
SERVICE CONTRACTS / WARRANTY INSURANCE
North Carolina enacted legislation regarding legal framework for sale and regulation of motor vehicle ancillary anti-theft protection contracts. SB 195
SURPLUS LINES
Arkansas issued a bulletin clarifying information relating to surplus lines brokers and others, specifically interpretation of "underwriting expenses" and related fees. Bulletin 14-2015
THIRD PARTY ADMINISTRATORS
Nevada has adopted the Third Party Administrator Information form that is required by third party administrators for Workers' Compensation by Oct 21, 2015 and within 30 days of any changes or updates during the year. FY15 TPA Information Form
TITLE INSURANCE / AGENTS
Florida enacted regulation relating to title insurance and real estate transactions. The new rule specifies disclosures required for escrow disbursements, written approval of disbursement, and recipients of approved forms. FAC Rule 69B-186.008
Utah has amended its regulations regarding title insurance producer annual and controlled business reports. R592-11-1 through R592-11-4, AND 592-11-7
WORKERS' COMPENSATION
Nebraska has issued a notice that the maximum weekly workers' compensation income benefit under the Nebraska Workers' Compensation Act will increase. WC Notice of October 21, 2015
New Mexico has amended regulations relating to Workers' Compensation. 11.4.3.1+
New York has issued a bulletin establishing the 2016 Assessment Rate. Bulletin WC 46-822
Ohio has amended regulations regarding workers' compensation Group retrospective rating program. 4123-17-73
Oklahoma has published the Oklahoma Workers' Compensation Commission Maximum Weekly Compensation Rates. Regulatory Activity WCC Maximum Weekly Compensation Rates
Oregon amended its regulations regarding Workers' Compensation Claim Closure and Reconsideration. OAR 436-030-0001 +
Tennessee has issued a Workers' Compensation notice regarding the dissolution and replacement of the Tennessee Workers' Compensation Insurance Plan reinsurance mechanism. WC Notice of September 30, 2015
Washington has amended its regulations regarding Workers' Compensation and mental health. 296-14-300, 296-20-330, and 296-21-270
West Virginia has issued a notice regarding Workers' Compensation assigned risk rates by class. WC Notice of 2015 Assigned Risk Rates
West Virginia has published the Workers' Compensation advisory loss cost by class voluntary market for all classifications. WC Notice of 2015 Loss Costs
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