Property & Casualty News
August 2017
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.
ACTUARIAL
New York adopted a regulation regarding statement of actuarial opinion and actuarial opinion summary for property and casualty insurers. 11 NYCRR 111
AGENT / PRODUCER LICENSING AND APPOINTMENT
Alabama revised its regulation regarding continuing education for producers and service representatives by amending education provider requirements. 482-1-110- .06
Delaware updated the requirements for agent license applicants who declare Delaware as their home state. The applicant's entire criminal history, or a statement that no such history exists is required from the State Bureau of Identification and from the Federal Bureau of Investigations. Agents Bulletin No. 22 (Revised)
Louisiana amended the licensing fees paid by insurance producers. House Bill 503
Maine amended its law regarding appointment of a producer as agent to include a provision stating that a nonresident producer acting pursuant to a national nonresident producer license issued through the National Association of Registered Agents and Brokers, may not act as an agent of an insurer unless the insurance producer becomes an appointed agent of that insurer. 24-A s 1420-M
AUTOMOBILE INSURANCE
Maryland issued a bulletin regarding Enhanced Underinsured Motorist Coverage. The bulletin includes the form mandated for use in offering such coverage. The changes apply to automobile policies purchased after July 1, 2018. Bulletin 17-07
CAPTIVES
Alabama revised captive insurers annual audit provisions. 482-1-138-.04Connecticut enacted legislation to allow a dormant captive insurer to apply to the Insurance Commissioner for a certificate of dormancy, subject to renewal every two years and forfeited if the dormant captive commences transacting insurance business or fails to timely renew the certificate. House Bill 7183
CONFIDENTIALITY / PRIVACY
West Virginia issued an informational letter regarding Gramm-Leach-Bliley Act Annual Privacy Notices. Informational Letter 198
BE THE FIRST TO SEE OUR NEW TRAINING COURSES!
Contact Us with your request to be added to the list for our complementary previews
of Anti-Fraud and Anti-Money Laundering in August, or OFAC and Privacy in the Fall.
CREDIT FOR REINSURANCE
Mississippi amended regulations regarding credit for reinsurance. 19-1-22.05 +
CYBERSECURITY
New York launched new online portal to transmit notifications required under the state's cybersecurity regulation. Covered entities are required to file certain reports, including notices of certain cybersecurity events within 72 hours starting August 28, 2017. In addition, by February 15, 2018, entities must file a certificate of compliance. DFS Press Release 7-31-2017
DISASTER / CATASTROPHIC EVENT
Florida updated procedures for insurers to follow after hurricanes or other natural disasters. FAC Rule 69O-142.015
New York issued a circular letter regarding resolution of claims arising out of the flooding of Lake Ontario. Circular Letter No. 10 (2017)
FILINGS: PROPERTY / CASUALTY
Delaware issued a bulletin which gives insurers writing automobile insurance coverage the option to make consolidated filings to comply with HB 114 and HS1 to HB80. The filings must be submitted to the Department no later than November 13, 2017. Auto Bulletin No. 26
Massachusetts posted a message on SERFF announcing a mid-year exception to its annual January updates revising the Legal Services Plan checklist. The checklist is found in SERFF in the Base Checklists – Property and Casualty Insurance component, within the ZIP file. SERFF Message 06-30-17
Oregon enacted legislation exempting certain classes of commercial insurance from the filing of rates and policy forms. The legislation also lists classes that are not exempt from filing. SB 985
FAST PRODUCTS, FASTER APPROVALS WITH FIRST CONSULTING
Whether you are concerned with just a few challenging states, or utilizing the IIPRC,
or submitting to all 50+ jurisdictions, First Consulting is the solution to your speed to market goals.
And all of the filings can be made on your SERFF instance! Click here to learn more.
FINANCIAL EXAMINATIONS
Pennsylvania issued a notice providing updated per diem charges for financial examinations conducted by the insurance department. The Department will calculate and bill per diem charges for financial examination costs in 1/2-hour units. Notice 2017-07
GUARANTY ASSOCIATION
Michigan issued a bulletin announcing the annual adjustment to the maximum unearned premium refund relating to the Property and Casualty Guaranty Association. The current maximum unearned premium refund is effective July 1, 2017 to June 30, 2018. Bulletin No. 2017-11-INS
LIABILITY INSURANCE
North Carolina enacted legislation concerning liability insurance requirements for zip line and challenge courses. SB 100; 66-450; 66-451; 66-452
Oregon approved a bill regarding electric vehicle charging stations. It provides for a tenant installing an electric vehicle charging station for the use of the tenant, employees of the tenant or customers of the tenant and specifies that the tenant's landlord may require the owner of the charging station to maintain liability insurance covering the charging station. HB 2510
Oregon enacted legislation relating to limitation on liability for entry into a motor vehicle to remove a child or domestic animal left unattended. HB 2732
MISCELLANEOUS
New York extended from July 1, 2017, to July 1, 2020 the expiration date of certain provisions concerning P&C rates and cancellation and nonrenewal provisions. AB 7861
Oregon amended its regulation regarding guaranteed asset protection waivers by exempting waiver addendums to finance agreements and specifying the addendum is not insurance. SB 338
PERSONAL LINES INSURANCE
Delaware amended regulations relating to rating factors used to determine personal insurance rates. Chapter 83 is replaced and retitled "The Use of Credit Information in Personal Insurance." HB 80
PORTABLE ELECTRONICS INSURANCE
Oregon approved amendments to laws pertaining to portable electronics insurance coverage. SB 330
REGULATORY REPORTING REQUIREMENTS
Louisiana enacted legislation requiring each risk-bearing entity authorized by the commissioner to annually inform the commissioner by electronic means of the name, mailing address, phone number, and electronic mail address of each individual responsible for certain duties. R.S. 22:41.2
REINSURANCE
Texas amended its Insurance Code relating to authorized reinsurance and financial statement credit and accounting for reinsurance. Senate Bill 1070; 493.002+
REPORTS - DATA CALLS & OTHER REPORTS
Connecticut issued a data call regarding terrorism risk insurance. The data call applies to admitted property and casualty insurers that write certain blank line coverages. Information should be reported to the NY Insurance Department rather than the CT DOI. Reports are due by September 30, 2017. Bulletin IC-38
MAINTAINING COMPLIANCE ISN’T AS TIME CONSUMING AS YOU THINK
Reviewing and analyzing every regulatory change is time consuming.
First Consulting can help! Click here to learn more.
SERVICE CONTRACTS / WARRANTY INSURANCE
Mississippi adopted rules regarding vehicle service contracts to provide rules and procedural requirements. 19-4-4.01 +
SURPLUS LINES
California implemented a revised surplus lines broker bond form. The new form is available for immediate use. Notice dated June 16, 2017
THIRD PARTY ADMINISTRATORS
New Hampshire amended and clarified its regulation regarding licensing and regulation of Third-Party Administrators (TPAs). Ins 2301.01
TRANSPORTATION NETWORK
Alaska enacted legislation regarding transportation network companies (TNCs) and their drivers. Among other things, it provides for insurers to exclude coverage under a policy issued to an owner or operator of a personal vehicle for any loss occurring while a driver is logged onto the digital network of a TNC. House Bill 132
UNCLAIMED PROPERTY
Delaware enacted legislation to revise its Code related to abandoned or unclaimed property. Senate Bill 79
WORKERS' COMPENSATION
Georgia amended regulations regarding workers' compensation. Changes involve hearings, compensation for medical care, payment of medical expenses and necessity of treatment. Rules 61, 100, 200, 203, 205
New Hampshire enacted legislation that creates a process for individuals to request a blood testing order after they have been exposed to another individual's bodily fluids in the course of employment. SB 59
FAST PRODUCTS, FASTER APPROVALS WITH FIRST CONSULTING
The speed of business and number of associated new products is constantly increasing. Yet for many of us, the capacity to complete that work and achieve those timely goals has remained unchanged.
First Consulting can help you reach your product objectives!
Whether you are concerned with just a few challenging states, or utilizing the IIPRC, or submitting to all 50+ jurisdictions, First Consulting is the solution to your speed to market goals. For added convenience, all of the filings can be made on your SERFF instance!
Contact me today to find out more on how First Consulting can help you.
Sean Cox
816.391.2737
Sean.Cox@FirstConsulting.com
BE THE FIRST TO SEE OUR NEW TRAINING COURSES!
First Consulting will roll out our NEW and IMPROVED 2017-2018 Training Season courses soon! Email us with your request to be added to the list for our complementary previews of Anti-Fraud and Anti-Money Laundering in August, or OFAC and Privacy in the Fall.
C. J. Rathbun, FLMI, CCEP, HIA, AIRC
816.391.2740
CJ.Rathbun@FirstConsulting.com
MAINTAINING COMPLIANCE ISN’T AS TIME CONSUMING AS YOU THINK
Reviewing and analyzing every regulatory change for your open and closed block of business is time consuming. First Consulting can help!
Compliance Monitoring Levels:
• Level One – Review and summarize legislation and advise which products and business area(s) are impacted.
• Level Two – All of Level One and provide a list of action items required to maintain compliance. (For example, you may need to draft and file an endorsement, send endorsement to insureds and update procedures.)
• Each level will provide summaries on a weekly or monthly basis.
Don’t see what you need in Level One or Level Two above? We will create a custom compliance monitoring service tailored to you and your company’s needs.
Don’t let any more time pass by, delegate to First Consulting. Call us today to discuss how Compliance Monitoring will help free up your time.
Judy Lucas
816.391.2734
Judy.lucas@FirstConsulting.com
Vickie Goodman
816.391.2735
Vickie.Goodman@FirstConsulting.com