Property & Casualty News
August 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
New Hampshire's Insurance Commissioner issued a bulletin reminding insurers they must appoint all producers acting as their agents. A penalty of up to $2,500 per violation may be assessed against licensees not in compliance. Bulletin INS 21-051-AB
AUTOMOBILE INSURANCE
Delaware's Insurance Commissioner reminds the casualty insurance industry writing private passenger and commercial automobile insurance policies and licensed adjusters to comply with the Comparative Negligence statute and Unfair Trade Practices Act when settling claims. Expected best practices are listed in the bulletin. Auto Bulletin 33
Illinois requires personal automobile policies to pay the replacement vehicle use or occupation tax, title, and transfer fees on a private passenger total loss claim. Failure to do so may be considered an improper claims practice. SB 61
Massachusetts' Director of State Rating Bureau published a Filing Guidance Notice designating certain 2022 model year motor vehicles as high theft vehicles. Filing Guidance Notice 2021-E
Michigan’s Department of Insurance announced the annually adjusted maximum work loss benefit and survivors' loss benefits payable under policies of personal protection insurance. Bulletin 2021-30-INS
Michigan's Department of Insurance published a bulletin addressing Family-Provided Attendant Care. The Department is clearing up an apparent misconception that the 2019 no-fault reforms placed a 56-hour "cap" on attendant care. Bulletin 2021-31-INS
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
Delaware requires prior notice be given when an insurer cancels a property insurance policy. Written notice must be mailed or delivered to the named insured at least 30 days prior to cancellation. However, when cancellation is for nonpayment of premium, at least 10 days' notice of cancellation must be given. SB 79
District of Columbia Insurance Commissioner issued guidance to carriers and premium finance companies on acceptable practices regarding the expiration and lifting of the COVID-19 public health emergency. Notice dated July 19, 2021
COMMERCIAL LINES INSURANCE
Texas eliminates the rate and form filing requirements for 18 types of commercial insurance for policies issued or renewed on September 1, 2021 and thereafter. Bulletin B-0022-21
CORPORATE GOVERNANCE
Illinois amended the Business Corporation Act to expand the requirements for shareholder meetings that are held remotely. The law allows foreign and domestic corporations to report interim changes to name and address of its officers, directors, principal office or its minority-owned business status. SB 116
CREDIT FOR REINSURANCE
Delaware revised provisions relating to credit for reinsurance. HB 44
CYBERSECURITY
Colorado passed a comprehensive consumer privacy law. This law allows consumers to opt out of the processing of their personal data, access, correct or delete the data or obtain a portable copy of their data. Opt-in consent is required for the processing of sensitive personal information such as genetic or biometric data, religion, or ethnic origin used to uniquely identify an individual. SB 190
Hawaii adopted the NAIC Insurance Data Security Model Law. SB 1100
Michigan's Insurance Department issued a bulletin summarizing certain requirements under the Insurance Data Security law which was effective on January 1, 2021. Among other requirements, the Director is to be notified within 10 business days after determination that a cybersecurity event has occurred involving nonpublic information. Bulletin 2021-32-INS
North Dakota issued a bulletin summarizing the requirements of the Insurance Data and Security Law, SB 2075. The bulletin includes to whom the law applies, staggered effective dates for implementation, and information on reporting cybersecurity events. Bulletin 2021-4
Wisconsin enacted the Insurance Data Security Law which requires notification of a cybersecurity event, confidentiality of certain documents, materials and information, and other requirements. SB 160
DISASTER / CATASTROPHIC EVENT
Michigan's Insurance Director published a Memorandum rescinding several bulletins and orders due to the state having lifted all Emergency Orders regarding the COVID-19 pandemic. Insurers have a grace period until November 1, 2021, to hold policyholder, stockholder, and board meetings on a remote basis. However, the grace period does not apply to filing requirements which effective July 26, 2021, have reverted to the filing requirements contained in the DIFS Annual Forms and Instruction Booklets. Memorandum dated July 26, 2021
Texas' Insurance Commissioner issued a bulletin informing carriers that the Governor rescinded specified suspensions issued in response to the COVID-19 pandemic, effective September 20, 2021. Specific details are contained in the bulletin. Bulletin B-0020-21
FILING REQUIREMENTS / PROCEDURES
Alabama's Insurance Department issued a bulletin indicating the filing fees effective October 1, 2021. Bulletin 2021-06
Alabama's Insurance Commissioner issued a bulletin indicating that P&C filings seeking trade secret confidentiality must be made electronically through SERFF. HB 132 requires P&C insurance filings relating to rates and rating organizations to be open to public inspection. The insurance commissioner is directed under the law to keep confidential and trade secret filings separate. Bulletin 2021-05
MISCELLANEOUS
Louisiana's Insurance Department issued an advisory letter to inform insurers that the Commissioner grants a waiver allowing policy limits to be reduced by defense expenses pursuant to SB 131 until July 30, 2022. This waiver applies to all P&C insurance policies except personal lines, medical malpractice, commercial vehicle, and commercial general liability. Advisory Letter 2021-04
Nebraska's Insurance Department has moved its offices twice in the last three years. Every carrier is instructed to update all forms with the correct address. For some claim denials, an insurer is required to give the department's address. A product filed with the old address does not need to be refiled in SERFF. Notice dated 7/28/21
PROPERTY INSURANCE
Delaware prohibits a property repair contractor from being assigned the rights and benefits under a property insurance policy if the policy so states. Property repair contractors may not subvert the public adjuster licensing requirements through the acquisition of a power of attorney from the named insured. SB 80
SURPLUS LINES
Alaska published a bulletin containing a list of eligible surplus lines insurers (white list). Bulletin B 21-05
TITLE INSURANCE / AGENTS
Maryland Insurance Commissioner issued a bulletin setting forth the conditions under which a title insurer may continue to conduct temporary remote audits of title insurance producers following the non-renewal of the COVID-19 state of emergency and December 31, 2021. Bulletin 21-19
TRADE PRACTICES
Connecticut's Unfair Insurance Practices Act has been amended to add that carriers cannot discriminate based on sexual orientation, gender identity or status as a victim of domestic violence. HB 6590
New Mexico amended its Unfair Trade Practices Law to allow an insurer to offer value-added products and services at no or reduced cost, even when they are not specified in the insurance contract. The Insurance Superintendent issued a bulletin informing insurers that prior to offering or providing a value-added product or service, it must submit an informational filing in SERFF including a Notification of Intent to Offer Value-added Products and Services Form. Bulletin 2021-014
North Dakota issued a bulletin providing an overview of the revised Unfair Trade Practices law regarding the use of value-added services not being considered a rebate under certain instances. The Insurance Department no longer wants value added products or services to be included in form or rate filings; however, a special form must be filed. Bulletin 2021-3
UNCLAIMED PROPERTY
California passed a law requiring that unclaimed property of at least $2,000 cash must be paid via electronic funds transfer to the Controller provided it meets other requirements. Prior law required property of at least $20,000 cash must be paid via EFT. SB 308
WORKERS' COMPENSATION
Maryland's Workers' Compensation Commission issued the annual cost of living adjustment (COLA) for compensation paid to employees with a permanent total disability for an accidental injury or occupation disease sustained on or after January 1, 1988. The 2022 amount is an increase of 0.9%. Annual Cost of Living Adjustment (COLA)
Minnesota's Department of Commerce has approved the 2022 Minnesota Ratemaking Report effective January 1, 2022. The overall average workers' compensation pure premium level change is reduced by 6.5%. Circular Letter 21-1790 dated August 12, 2021