Property & Casualty News
Welcome to our latest newsletter! As a thought leader in the Insurance Industry for over 48 years we are always excited to share the latest sampling of insurance compliance related bulletins, regulations and legislative activity. Please feel free to share this newsletter with others that may be interested. Contact Us with any questions on the items in this newsletter or with any other compliance related matter we can assist you with. Enjoy!
AGENT / PRODUCER CONTINUING EDUCATION
Alabama amended its code to eliminate extensions for complying with continuing education requirements. HB125
Nebraska amended its law to change continuing education requirements. LEGISLATIVE BILL 486
New Mexico amended its regulation regarding continuing education requirements by revising definitions, the requirements for licensees and the number of continuing education hours required. 188.8.131.52 NMAC+
AGENT / PRODUCER LICENSING AND APPOINTMENT
Alaska issued a bulletin advising that the renewal window for licensees and registrants was extended from 60 to 90 days effective February 9, 2018. Any licensed or registered entity may renew their credentials up to 90 days prior to the respective expiration date. Bulletin B 18-03
California issued a reminder of the reporting requirements for administrative actions and criminal convictions for all licensees and applicants. Licensing Notice dated February 15, 2018
South Dakota revised certain licensing renewal procedures for business insurance producers. House Bill 1033
Iowa amended its regulation regarding the reduction of the amount of a plaintiff's recovery due to failure to wear a motor vehicle safety belt or harness. The possible reduction in the amount of recovery was increased from a maximum of 5% to 25% of the damages awarded after any reductions for comparative fault. SF 2135
Nevada amended its regulations regarding new minimum vehicle liability requirements, effective July 1, 2018. SB 308
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
The District of Columbia issued a notice regarding notice of cancellation and nonrenewal for property and casualty insurers. Notice dated March 9, 2018
Vermont amended its law to require that specified captive insurance companies submit to the Commissioner an annual report of its financial condition by March 15 of each year. The previous due date was in February of each year. House Bill 694
CERTIFICATE OF AUTHORITY FILINGS
Vermont issued a bulletin regarding revised criteria for companies seeking authorization to transact insurance in the state Bulletin 43
Wyoming amended regulations relating to applications for certificates of authority filings. SF0009
CONFIDENTIALITY / PRIVACY
Alabama enacted the Alabama Data Breach Notification Act of 2018 to require entities to provide notice of breach of security. SB318
Nebraska amended its law to require additional reasonable security procedures and practices regarding personal information. Entities that own, license, or maintain computerized data that include personal information about a resident of Nebraska must maintain certain security procedures and practices. LEGISLATIVE BILL 757
Washington approved a bill regarding the penalty for failing to file the corporate governance annual disclosure when due. Senate Bill 6059 Sec. 7
Wyoming enacted legislation to create the Insurance Corporate Governance Annual Disclosure Act effective July 1, 2019. No insurer or insurance group will be required to file the disclosure required by this act until 2020. W.S. 26-29-239; 26-54-101-26-54-108
IMPORTANT CGAD ALERT!
Is your domicile state one of the nine requiring your
Corporate Governance Annual Disclosure (CGAD)
report for the first time in 2018? Click here to learn more!
DISASTER / CATASTROPHIC EVENT
Ohio issued a bulletin that pertains to all insurance companies requesting that they allow their insureds impacted by the state of emergency declared on February 24, 2018 to defer premium payments coming due and extend any and all provisions imposing time constraints within which insureds must take certain action. Bulletin 2018-01
Rhode Island declared a storm that occurred on March 2, 2018 a catastrophic event. As a result, the emergency adjuster and motor vehicle damage appraiser licensing statutes were triggered. Industry Alert 2018-1 and Bulletin 2005-14
The Securities and Exchange Commission published interpretive guidance to assist companies in preparing disclosures about cybersecurity risks and incidents. Interpretive Guidance dated February 26, 2018
Wyoming amended insurer requirements pertaining to annual audited financial reports to conform to model regulations and added internal audit function requirements effective January 1, 2019. SF0008
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South Dakota amended its law to specify when a domestic mutual insurer may reorganize or convert into a corporation with capital stock. House Bill 1042
Puerto Rico established guidelines regarding the term for delivery of property insurance policies. Ruling Letter CN-2018-235-D
California issued a notice regarding federal corporate income tax changes. The reduced federal corporate income tax rate lowers the maximum allowable rates for all property and casualty insurance lines subject to Proposition 103. The notice specifies that excessive property and casualty insurance rates shall not remain in effect and any insurer with excessive rates must file a rate change application to seek an appropriate insurance rate reduction. Notice dated March 16, 2018
REPORTS - ANNUAL / QUARTERLY STATEMENT
Arkansas advised that the effective date for the prescribed use of the Accounting Practices and Procedures Manual of March, 2018 shall be for the Annual Statement as of December 31, 2018, to be filed on or before March 1, 2019. Bulletin 2-2018
ASSESSMENTS AND MOCK EXAMS
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Virginia amended its regulations regarding licensing of surplus lines insurers effective July 1, 2018. SB 542
TITLE INSURANCE / AGENTS
Idaho amended its law regarding reimbursement or discount of escrow fees or title insurance premiums in certain instances. HB 519
Maryland issued a bulletin regarding earnest money deposits held by title insurance producers. Bulletin No. 18-04
North Carolina issued a circular letter concerning data related to terrorism risk and workers' compensation coverage. The letter specifies that carriers do not need to take action with regard to the NAIC Data Call. To fulfill the obligation of carriers, the North Carolina Rate Bureau, in cooperation with NCCI, provided the data through NCCI. WC Circular Letter C-18-7
Texas issued a bulletin regarding revised classification relativities and instructions on making rate filings. Bulletin B-0004-18
Texas made an additional amendment to the new plain language notice. The amendment provides insurance carriers with an option to communicate to injured employees when they are making a reasonable assessment of impairment rating. New Amendment to Plain Language Notice 3b and Delayed Effective Date
First Consulting can help you analyze your compliance results and help senior management to know what your actual results are.
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Joe Bieniek, CPCU, AIE, CRM, CCP, CIC, ARC, AMCM, AIS, AU, AINS
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