Property & Casualty News
April 2021
Welcome to our latest newsletter! As a thought leader in the Insurance Industry for over 50 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 LICENSING AND APPOINTMENT
Alabama's Insurance Department issued a Bulletin regarding Producer, Adjuster and Title Insurance Agent licensing issues in light of the COVID-19 emergency. The bulletin covers Initial License Applications, Prelicensing Certificate of Completion, and Continuing Education Requirements. It modifies previous bulletins. Bulletin No. 2021-02
AUTOMOBILE INSURANCE
Alabama's Department of Revenue revised the requirements for a title obtained under a surety bond. Rule 810-5-75-.34
Iowa amends its law relating to wrecked or salvage motor vehicles. A wrecked or salvage vehicle means a damaged motor vehicle subject to registration for which the cost of repair exceeds 70% (was 50%) of the fair market value before the vehicle became damaged. SF 230
North Carolina approved revisions to its Personal Auto Policy Program effective for all new and renewal policies effective October 1, 2021. Notice requirements are included. North Carolina Rate Bureau Circular Letter A-21-4
COMMERCIAL LINES INSURANCE
Colorado added a new regulation section that applies to all P&C carriers that file rates and/or loss cost filings with the DOI. The new section addresses the practice of rate change limitations (caps, ceilings and/or floors) to new and/or existing policyholders in order to facilitate the transition to rate parity between policyholders of the same class and hazard and avoid unfairly discriminatory rating. Regulation 3 CCR 702 Reg. 5-1-20 s 1
CONFIDENTIALITY / PRIVACY
North Dakota amended its regulation dealing with annual privacy notices sent to customers. It includes an exception for a licensee to provide the annual notice if it has not changed its policies and practices on disclosing nonpublic personal information from those disclosed in the most recent notice it sent to customers. Regulation 45-14-01-06
CREDIT FOR REINSURANCE
Montana amended its law allowing credit to a domestic ceding insurer to an assuming insurer when certain conditions are met. The commissioner can suspend or revoke assuming insurers that do not meet certain requirements. 33-2-1216 MCA, HB 80
CYBERSECURITY
New York provides a follow-up letter to its Cyber Fraud Alert from February 16, 2021. The letter advises companies to take immediate action to protect consumer data from ongoing cybercrime. Industry Letter of March 30, 2021
FLOOD INSURANCE / NFIP
FEMA released a new listing of communities scheduled for suspension of the sale of flood insurance and those eligible for the sale of insurance under the National Flood Insurance Program (NFIP). 44 CFR Part 64
GENERAL LIABILITY INSURANCE
Montana passed the Securities Uniform Whistleblower Act. This law provides monetary awards to whistleblowers who provide information relating to a possible violation of state or federal securities laws that has occurred or is about to occur. It also provides protection for those who make whistleblower complaints. HB 64
MISCELLANEOUS
Florida passed a law that concerns civil liability for damages related to COVID-19. It provides requirements for a civil action based on a COVID-19 related claim, and states that the plaintiff has the burden of proof. SB 72
Wyoming amended its law that prohibits discrimination in insurance and health care services based on a person's disability. A covered entity cannot, solely on the basis of an individual's disability, consider the individual ineligible to receive an anatomical gift or organ transplant, deny medical services or other services related to organ transplant. An individual may file a lawsuit to enforce compliance. 35-5-301, HB 111
SERVICE CONTRACTS / WARRANTY INSURANCE
North Dakota amended its law relating to the marketing, selling, issuing or administering of property service contracts and vehicle theft protection product warranty to state they are not subject to the insurance code. 9-01-21
SURPLUS LINES
North Dakota requires a surplus lines affidavit documenting whether the insurance, indemnity contract or surety bond can be procured from a company authorized to do business in North Dakota to now be filed quarterly with the insurance commissioner instead of within 60 days after placing the insurance. Regulation 45-09-01-03
Pennsylvania's Insurance Department published the insurance coverages or risks generally unavailable in the authorized market and which are exportable. For insurance coverages on the export list, a diligent search among insurers admitted to do business in Pennsylvania is not required before placement of coverage. Notice of April 3, 2021
WORKERS' COMPENSATION
Kentucky updated standards for workers' compensation unfair claims settlement practices. 803 KAR 25:240
Mississippi amends its Workers’ Compensation Medical Fee Schedule for telemedicine for workers' compensation. It also sets forth how telemedicine services must be provided. Regulation R20-2-12.19
New Jersey announced that due to the continuing COVID 19 pandemic, the Compensation Rating Bureau again extended certain premium reduction pricing elements available in the New Jersey Workers' Compensation and Employers' Liability Insurance Manual to December 31, 2021. Advisory Bulletin No. 86
North Dakota updated its Workers' Compensation laws to clarify that the definition of compensable injury does not include injury caused by the use of intoxicants, including recreational marijuana use, or the illegal use of controlled substances. HB 1084
Rhode Island notified carriers and others that the cost of living increase for 2021 will be 1.9% for certain workers' compensation benefits. Late payment of the increase may result in a 20% penalty on the unpaid amount. Information Letter 2021-02
The Connecticut Workers' Compensation Commission published the 2021 Official Connecticut Fee Schedule for Hospitals and Ambulatory Surgical Centers. Memorandum 2021-01
Virginia amended its workers' compensation law to make a presumption of compensation for certain diseases applicable to salaried and volunteer emergency medical services personnel. These diseases are respiratory disease, hypertension, heart disease, or cancer. 65.2-402, SB 1275