Property & Casualty News
August 2018
Welcome to our latest newsletter! As a thought leader in the Insurance Industry for over 49 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!
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ADJUSTERS
Nevada amends provisions to prelicensing and continuing education requirements for applicants for a license as an adjuster or an associate adjuster. NAC 684A (R028-18)
Rhode Island has increased the fee for license issuance from $150 to $250 to act as a public adjuster, company adjuster, or an independent adjuster. 27-10-3
AGENT / PRODUCER CONTINUING EDUCATION
Nebraska issued a bulletin stating that insurance producers are eligible to receive up to six continuing education credits for active participation in a professional insurance association. The bulletin defines what active participation means and what qualifies as a professional insurance association in order to earn these continuing education credits. Bulletin CB-141
AGENT / PRODUCER LICENSING AND APPOINTMENT
Hawaii issued a memorandum postponing the effective date of licensing requirements regarding elimination of producer-to producer appointments and terminations of appointments to 1/1/2020. Memorandum 2018-3LIC
AGENT / PRODUCER TERMINATION
Colorado issued a bulletin providing a standardized form for use when a producer is terminated for cause. Notification is required within 30 days. The form can be obtained on the DOI's website and must be submitted via email. A copy must be supplied to the terminated producer within 15 days of submission to the DOI. Bulletin B-1.32
AUTOMOBILE INSURANCE
Kentucky has issued an emergency regulation relating to a prior emergency regulation regarding ignition interlock devices (IIDs). The prior emergency regulation that was set to expire on June 14, 2018. This regulation has been extended until December 10, 2018 and differs substantially by amending the language in the NECESSITY, FUNCTION, and CONFORMITY section. Emergency 601 KAR 2:030
Rhode Island amended provisions of insurance reporting. Each insurer that issues a policy including motor vehicle liability coverage, uninsured motorist coverage, underinsured motorist coverage, or personal injury coverage must provide weekly (previously monthly), a record of each motor vehicle insurance policy in effect for vehicles registered or garaged in the state as of the date of the previous submission that was issued by the insurer, effective January 1, 2019. 31-47.4-2 +, SB 2426
Rhode Island issued an industry alert to notify insurance company representatives of SR-22 filings being eliminated, effective 7/18/18. Industry Alert 2018-2
CERTIFICATES OF INSURANCE
Idaho issued a bulletin addressing the filing of certificates of insurance by property/casualty insurers. Certificates are allowed to include reference to a project or contract. However, in these cases, the certificate does not warrant that the referenced policy complies with insurance indemnification requirements. The bulletin also includes required language. Bulletin 18-06
CLAIMS / CLAIMS ISSUES
Colorado amended regulations relating to stolen motor vehicles, specifically obtaining a title for stolen motor vehicles. The address for submission of transfer of certificate to the insurance company has changed. 1 CCR 204-10 Rule 43
Puerto Rico established standards to be followed in appraisal processes in cases where there are disputes regarding the amount of the loss in the insurance claims for commercial property to encourage the use of alternative expeditious methods of resolving such claims. Ruling CN-2018-241-D
CONFIDENTIALITY / PRIVACY
California enacted the Consumer Privacy Act of 2018, effective January 1, 2019. AB 375; Civ s 1798.100+
CORPORATE GOVERNANCE
New Hampshire adopted rules to set forth procedures for filing and the required contents of the Corporate Governance Annual Disclosure. Ins 4502 +
DISASTER / CATASTROPHIC EVENT
Colorado declared a state of disaster emergency following the Spring Creek Fire, effective July 11, 2018. Executive Order D 2018-007
Puerto Rico issued a circular letter to all insurers authorized to write property and casualty insurance, public and independent adjusters, producers, authorized representatives, and the general public. It is continuously revising a list that includes insureds and claimants that are in the primary social and economic need sectors affected by Hurricane Maria, originally designated under ruling letter No. CN-2017-220-D, which provides guidelines for a rapid and equitable method for adjusting claims due to the hurricane. Circular Letter CC-2018-1924-D
DISCLOSURE REQUIREMENTS
Georgia amended regulations relating to trust companies. All policies must include notice that the policy cannot be cancelled without the insurance company providing at least 60 days notice or similar protection approved by the DOI. The revision also provides that a trust company must get approval from the Department prior to reducing or taking action to reduce the amount of its insurance coverage. 80-13-1-.06
North Carolina issued a memorandum pursuant to Bulletin 18-B-08, sent out 7/2/18, about consent to rate (CTR). The Department will consider delaying implementation for those companies who make a hardship request to the Property and Casualty Division via written submission prior to 1/1/19. Once a hardship request is approved, implementation of the new CTR legislation may be delayed up to 9/1/19 with no additional delays allowed. Memorandum dated 7/17/18
FILINGS: PROPERTY / CASUALTY
Iowa issued a message on SERFF stating that due to a temporary P&C staffing deficiency at the Iowa Insurance Division, P&C rate filings requesting rate increases will be subject to outside review. The cost of outside reviews will be borne by the insurer. If insurers do not want to incur these charges, they may want to delay filing any P&C rate change requests. SERFF state message dated 7/2/18
MISCELLANEOUS PROPERTY / CASUALTY
New Hampshire issued a bulletin announcing that all pre-1999 P&C bulletins are withdrawn. They should not be relied upon by an entity in making decisions as to the legality of any action under NH Insurance laws. Bulletin INS-18-040-AB
New Hampshire issued a bulletin stating that the Commissioner has determined that the walling off of books of business is not unfairly discriminatory so long as insurers permit insureds in the walled-off book of business the opportunity to move to the new rates/coverages upon request. Bulletin INS-18-039-AB
PROPERTY INSURANCE
Florida amended regulations relating to the Florida Hurricane Catastrophe Fund. Effective August 1, 2018, a policy that only covers jewelry, that is not issued by an insurer that provides residential structure coverage, and the policy is not associated with a policy covering a residential structure, shall be exempt from participation in the fund. FAC Rule 19-8.028
North Carolina issued a circular letter to all member companies approving a rate level increase for dwelling fire and extended coverage insurance. The approval results in an overall statewide average increase of 4.8% for all dwelling forms, revised territory definitions as filed, revised windstorm or hail exclusion credits, and revised wind mitigation credits. These changes are applicable to all new and renewal policies becoming effective on or after 2/1/19. Circular Letter P-18-7
REPORTS - ANNUAL / QUARTERLY STATEMENT
Puerto Rico issued a circular letter that requires all domestic insurers, health service organizations, producers, authorized representatives, adjusters, general agents, managers, surplus lines brokers, attorneys-in-fact, and insurance consultants to make compulsory use of the "Online Services Portal" to file the Annual Business Report and Annual Report of Direct Jobs Generated in Puerto Rico. The deadline for filing the 2017 reports is 8/31/18. Circular Letter CC-2018-1928-ES
SERFF FILINGS
Alabama issued a state message on SERFF introducing a change in model submissions. They are now required to be submitted individually and under a correct model "Filing Type" found in SERFF. The models must be approved before the corresponding Rate/Rule filing is submitted for review. SERFF state message dated 7/24/18
SERVICE CONTRACTS / WARRANTY INSURANCE
Nevada amended provisions regarding required information that must be included in service contracts, including specific language and procedures for making a claim on a contract. NAC 690C.110
TITLE INSURANCE / AGENTS
Nebraska issued a bulletin stating that a title insurer is required to issue closing protection to an insured if the title insurer issues a commitment or title insurance policy. The closing protection may be issued as a letter, policy endorsement, or other similar form. A title insurer may charge a fee for this coverage but that fee must be approved by the Department. The entire fee must be retained by the title insurer. Bulletin CB-140
Washington adopted title insurance rating and advisory organization rules, effective 7/26/18. These establish licensing fees and requirements for applicants looking to obtain a license as a title rating organization. They require a title rating organization to periodically update its title insurance rate filings and requires title rating organization to reimburse commissioner for costs associated with examination. WAC 284-29B
WORKERS' COMPENSATION
Arizona issued a notice providing guidance and best practices for settlement agreements related to workers' compensation claims submitted on or after August 3, 2018. Topics include filing processes, disclosure requirements, payments, and termination. It specifies that final settlement payments be made within 15 days. Regulatory Activity Notice Dated July 13, 2018
California issued an order requiring that federal income tax data be reported by workers' compensation insurers. The order requires rate filings through SERFF that report tax savings dollar amounts including detailed calculations and assumptions by December 31, 2018, and on a yearly basis through December 31, 2020. Order dated July 2, 2018
Georgia issued a notice that Form WC-1 must be included with all claim filings, including "medical only" claims. Notice of Change in WC-1 Filing Requirement
Indiana issued a notice with procedures and instructions for submission of proposed settlement documents to the Workers' Compensation Board. All orders and settlement agreements, including any supporting evidence, must be submitted electronically. The change is effective August 1, 2018 and required as of September 1, 2018. Paper documents will not be accepted after August 31, 2018. Notice of July 13, 2018
New York's State Department of Financial Services approved the filing submitted by the Rating Board for a decrease of 11.7% in the overall loss cost level, effective 10/1/18. Loss costs by classification will be posted on the Rating Board's website on or before 08/01/18. NYCIRB Bulletin R.C. 2467
New York's State Workers' Compensation Board will replace current Board treatment forms with the CMS-1500 form to help reduce paperwork and lower provider administrative burdens in instituting the CMS-1500 Initiative. It will promote a more efficient workers' compensation system. The initiative will be rolled out in three phases starting 1/1/19. Bulletin WC 046-1079
Pennsylvania issued a circular stating that the new web-based application Unit Data Manager (UDM) for the entry, edit, submission, and management of unit statistical information will be delayed and rescheduled for release at the end of the third quarter 2018. Bureau Circular No. 1706
South Carolina's Workers' Compensation Commission authorized an increase in the filing fee from $25.00 to $50.00 for each requested hearing, settlement, or motion filed, effective 8/1/18. WC Notice of 7/16/18
Vermont published the workers' compensation assessment rates, effective 7/1/18. For insurance companies, the assessment rate remains at 1.4%. For self-insureds, the assessment rate will be 1% of workers' compensation losses during the preceding calendar year. Workers' Compensation Assessment Fund 2018
Wisconsin issued a circular letter stating that the commissioner approved an overall decrease in rate level of 6.03%. The letter includes the revised rates and rating values effective 10/1/18. Circular Letter 3176