Property & Casualty News
April 2024
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!
ARTIFICIAL INTELLIGENCE
Illinois published a bulletin reminding companies that all existing laws and regulations, including unfair trade practices and unfair discrimination, apply to actions involving artificial intelligence systems. The bill explains new regulations requiring insurers to develop and maintain a written program for the use of artificial intelligence to avoid adverse consumer actions. Company Bulletin 2024-08
Pennsylvania's Insurance Commissioner issued a notice explaining expectations of insurers regarding the development, acquisition, and use of certain Artificial Intelligence technologies. Notice 2024-04
Rhode Island's Superintendent of Insurance distributed a bulletin to all insurers with Certificates of Authority asking them to comply with the Department's expectations regarding predictive models, risk management, internal controls, and third-party Artificial Intelligence systems. Bulletin 2024-03
AUTOMOBILE INSURANCE
Alabama established the state's Automobile Insurance Plan, which is intended to help apportion the cost of high-risk motor vehicle policies. SB 47
Idaho enacted a bill amending the Motor Vehicle definitions. It creates a new definition for Service-Only Facility, meaning a dealership location where motor vehicle service only is performed. HB 640
North Carolina's Rate Bureau received approval of changes applicable to Personal Auto Policy policies on and after January 1, 2025. These changes include revised liability base rates and increased limit factors. Circular Letter A-24-1
Oklahoma's Insurance Commissioner informed producers and carriers of a change in a Farm Driving Permit. Any person who is less than 17 years old but at least 14 years old and who resides on a farm or is employed on a farm may operate a Class D motor vehicle. Insurers may provide coverage but are not required to do so. Bulletin 2024-02
CAPTIVES
Tennessee amended its Captive Insurance Act to include definition and provisions for an Agency Captive Insurance Company and therefore modified the definition of Captive Insurance Company. SB 2024
CERTIFICATES OF INSURANCE
Georgia published a bulletin providing answers to frequently asked questions regarding certificates of insurance. Bulletin 24-EX-4
COMMERCIAL LINES INSURANCE
Arizona enacted legislation to revise the minimum commercial vehicle coverage amounts, including a minimum for transportation network company (TNC) coverage of $1 million per incident when a passenger is present. HB 2729
CYBERSECURITY
Illinois published a bulletin notifying insurers of the Insurance Data Security Law, which became effective 01/01/2024. The bulletin explains the mandatory initial notification of a cybersecurity event and the continuing obligation to update. Beginning 04/15/2025, there will be an annual certification of compliance required. Bulletin 2024-10
DEPARTMENT OF INSURANCE
Idaho enacted legislation amending provisions relating to administrative rules. Changes include allowing the legislature to review and reject materials incorporated by reference. Amendments also require that incorporated materials must be easily accessible on the agency's website. HB 563
FILINGS: PROPERTY / CASUALTY
Iowa adopted revised regulations making technical and other updates the form and rate filing requirements. The new chapter also sets out the requirements for the Iowa Fair Access to Insurance Requirements (FAIR) Plan. 191-20.1
FRAUD / ANTI-FRAUD
Delaware published a reissued bulletin regarding the Insurance Fraud Reporting Form. Insurers are reminded of the state's mandatory reporting requirements. Domestic-Foreign Insurers Bulletin 15 (Reissued)
MISCELLANEOUS
West Virginia passed a law allowing an unlicensed person who refers a customer to seek an opinion or advice on purchasing insurance to accept a one-time nominal fee of $100 or less. HB 5057; 33-11A-7
NOTICE TO INSUREDS
The Texas Insurance Commissioner adopted amendments to the consumer rights notices for personal automobile, homeowners, dwelling and renters insurance. These notices are given by the insurer to the policyholder when the policy is issued. 28 TAC s 5.9970 and 5.9971
OMNIBUS LEGISLATION
Indiana adopted a bill enacting numerous measures, including changes to the oversight of continuing education courses. It also removes the requirement for an alien or foreign insurer to annually file with the department a statement of its assets and liabilities. HB 1332
PERSONAL LINES INSURANCE
Connecticut published notice to advise insurers of the Department's position concerning the extent of roof damage needed to support underwriting action and the acceptable use of aerial imagery technology to evaluate such damage. The notice also reminds insurers of the need to provide an insured of at least 60 days advance notice of nonrenewal. Notice Dated 3-19-2024
Minnesota published a bulletin to all companies writing homeowners insurance. The bulletin notifies companies of the requirements for completing zip code reporting and provides for electronic submission. Administrative Bulletin 2024-1
Virginia passed a law requiring optional coverage to be offered with a new or renewal homeowner's policy or stand-alone policy that covers scheduled personal property. The optional insurance provides coverage for the diminution in value of any scheduled personal property, if the schedule provides for repair of the property. HB 1257; 38.2-2120
PROFESSIONAL LIABILITY INSURANCE
Washington passed the Uniform Telehealth Act which sets out when telehealth services may be provided and provides for a patient-practitioner relationship to be established through telehealth. SB 5481
TITLE INSURANCE / AGENTS
Maryland issued a bulletin providing notification of amendments affecting title insurance during the legislative session. The bulletin addresses notification and reporting duties as well as examples of possible violations. Bulletin 24-7
TRADE PRACTICES
Maine enacted legislation requiring telephone solicitors, prior to commencing a sales call, to use the reassigned numbers database to verify that a consumer's telephone number has not been reassigned. HP 1433
UNCLAIMED PROPERTY
Idaho approved a bill revising its unclaimed property act. Changes are intended to clarify certain presumptions, provide definitions and guidelines for policies and procedures, including reporting and notice. HB 471
WORKERS' COMPENSATION
California's Division of Workers Compensation updated the requirements for a Qualified Medical Evaluator (QME), including requirements for additional training, including anti-bias content. Other updates include provisions for QMEs who are unavailable for additional evaluations due to caseload. T. 8 s. 1, et seq
Kentucky enacted amendments to its Workers' Compensation law including new definitions of physician and an update to the calculation of unemployment benefits. HB 401
New Jersey's Compensation Rating and Inspection Bureau issued a circular letter updating the data for Residual Market policies and policy expirations scheduled for July 2024. This information is published monthly to facilitate the depopulation of the Plan. Circular Letter 2064
Oregon passed a law creating the crime of fraudulent misrepresentation. This occurs when an employer fraudulently misrepresents information to an insurer or state entity with intent to reduce workers' compensation premiums. SB 1580
South Carolina's Workers' Compensation Commission approved changes to the Medical Services Provider Manual (MSPM) for 2024. Advisory Notice dated March 29, 2024
Tennessee amended its Pharmacy Benefit Manager (PBM) rule regarding required actions during and after an initial appeal. Rule 0780-1-95-.02
Virginia added reporting requirements in its Pharmacy Benefit Manager law. HB 1402
Virginia's Workers' Compensation Commission updated the workers' compensation mileage reimbursement rate, weekly and maximum benefits chart. WC Benefits Chart dated March 28, 2024
Washington reduced the number of days (from 14 days to 7 days) that a worker's temporary total disability must continue to receive worker's compensation benefits for the day of the injury and the first three days following the injury. HB 1927
Wyoming's Department of Workforce Services published the updated statewide average monthly wage for the second quarter of 2024. Statewide Average Monthly Wage dated April 1, 2024