Property & Casualty News
April 2023
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!
ADJUSTERS
Kentucky adopted amendments to its laws governing the qualifications and duties of insurance adjusters. HB 232
New Mexico requires an individual who applies for a public adjuster license to file a surety bond in the aggregate amount of not less than $10,000. The bond is conditioned to pay actual damages to a member of the public or the state of New Mexico if the adjuster violates the law. The bond will remain in effect for the duration of the license. HB 229
ADVERTISING / SALES & MARKETING
Arkansas amended the definition of "rebates" to modify the minimum value of gifts to $100 or less in wholesale value. HB 1525
Tennessee extended the telemarketing provisions that apply to telephone solicitations to text message solicitations. SB 868
AGENT / PRODUCER CONTINUING EDUCATION
California's Licensing Division published notice of required producer education for anti-fraud training. Beginning March 1, 2023, both the pre-licensing training as well as continuing education must include the anti-fraud content. Notice Dated March 10, 2023
AGENT / PRODUCER LICENSING AND APPOINTMENT
California issued a notice reminding licensees of the annual requirement to report changes in background information. Notice Dated March 29, 2023
West Virginia will begin company appointment renewal processing for producers through the National Insurance Producer Registry (NIPR) on June 6, 2023. Notice dated March 15, 2023
AUTOMOBILE INSURANCE
Utah modified the statute of limitations involving personal injury from a motor vehicle accident or property damage to a motor vehicle. This law also changed the timeline within which a person must commence action for uninsured motorist coverage, plus others. HB 388
West Virginia enacted the Electronically Distracted Driving Act which provides limitations for the use of wireless telecommunication devices and stand-alone electronic devices for personal and commercial motor vehicle drivers. HB 2218
CLAIMS / CLAIMS ISSUES
Arkansas, as a result of the severe storms, released an emergency order requiring all insurers with affected claims to immediately begin adjusting claims and to contact all insured claimants within 10 days. Emergency Order 4-1-2023
COMMERCIAL LINES INSURANCE
California announced an agreement to increase coverage under the FAIR plan, raising the plan's commercial coverage limit to $20 million. 3-29-2023 Press Release
West Virginia amended its Good Samaritan Law relating to actions for injuries. Certain persons who render aid or emergency care to a person at the scene of an accident, disaster or emergency are not liable for civil damages for acts or omissions. HB 2605
CONFIDENTIALITY / PRIVACY
Iowa enacted legislation expanding consumer data privacy, including the consumer's right to delete personal data, request copies and opt-out of the sale of data. The new law is effective January 1, 2025. SF 262
CYBERSECURITY
Utah amended its disclosure requirement for system security breaches. SB 127
DISASTER / CATASTROPHIC EVENT
West Virginia's Insurance Commissioner ordered that all COVID-19 Emergency Orders related to insurance are rescinded as of March 24, 2023. Emergency Order Notice 23-EO-01
DISCLOSURE REQUIREMENTS
Louisiana promulgated Regulation 124-Catastrophe Claims Process Disclosure Guide. Property and Casualty insurers must provide this disclosure to policyholders presenting a claim for an event declared by the governor to be a state of emergency. The disclosure form must be delivered to the policyholder by mail, electronic delivery or by hand on the date the adjuster commences an initial investigation of the claim. Regulation 124
FILINGS: PROPERTY / CASUALTY
The District of Columbia amended the filing requirement for motor vehicle and homeowner rates from "file-and-use" to prior approval, with a 90-day review period. In addition, insurers must provide the policyholder with at least 60 days’ notice of any rate increase of 10% or more. DC B 147
FINANCIAL REGULATION
Idaho issued a bulletin announcing adoption of the March 2023 version of the NAIC Accounting Practices and Procedures Manual and the January 1, 2023, edition of the NAIC's Valuation Manual for use in preparing 2023 quarterly and annual statements. Bulletin 23-05
FRAUD / ANTI-FRAUD
Oklahoma's Insurance Department announced that the Anti-Fraud Assessment Annual Fee is due by July 1, 2023. It must be paid electronically, and paper filings and checks will no longer be accepted. Notice dated April 5, 2023
GUARANTY ASSOCIATION
Kentucky enacted various amendments to the Kentucky Insurance Guaranty Association Act, including changes to scope, definitions, and technical amendments. HB 210
HOLDING COMPANIES
Tennessee amended its Holding Company Law compliant with NAIC standards regarding an annual group capital calculation. SB 239
LIABILITY INSURANCE
Florida made numerous changes to civil law, including modification to the comparative negligence standard. The bill also made changes addressing awards for attorney fees, bad faith cases and the statute of limitations for bringing a negligence action. HB 837
West Virginia created the Motorsport Responsibility Act. This law describes the liability of motorsport operators and participants among other requirements such as inspection, maintenance and record keeping, etc. HB 2569
MISCELLANEOUS
Kentucky enacted legislation providing the framework for a regulatory sandbox, allowing for relief of certain regulatory requirements which might otherwise inhibit innovative offerings. HB 264
PREMIUM TAX
Colorado has amended premium tax for unauthorized insurers to provide that the premium tax rate on unauthorized insurance premiums is consistent with the rate for surplus lines insurance. HB 1111
PROPERTY INSURANCE
Louisiana's Insurance Department published notice of comprehensive reforms, aimed at attracting more insurers to the market and lowering the cost of homeowner's insurance. The package includes incentives to build and upgrade roofs to the FORTIFIED standard. Notice Dated April 4, 2023
WORKERS' COMPENSATION
Indiana issued guidance to be used in evaluating and processing Workers Compensation PPI injuries. Notice dated March 20, 2023
Massachusetts announced manual pages have been posted to its website for new rates taking effect July 1, 2023. Circular Letter No. 2415
Oregon provided a list of insurers and self-insured employers required to electronically submit detailed workers' compensation medical bill and payment data to the Oregon Department of Consumer and Business Services under OAR 436-160-0405. Bulletin 359 (Revised)
Virginia's Insurance Commissioner approved the recent National Council on Compensation Insurance Experience Rating Plan Manual, Filing #E-1409. Administrative Order 12168
West Virginia amended certain workers' compensation laws dealing with deliberate attempt to harm by an employer or employee, damages for non-economic loss and clarifying proof of loss, among other items. HB 3270