Property & Casualty News
August 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!
AGENT / PRODUCER TERMINATION
New Hampshire's Insurance Commissioner advised insurers that when an agent is terminated for cause, the carrier must notify the insurance department within 15 days of termination. The NHID urges all insurers doing business in the state to review their records to ensure that all terminations for cause over the previous 3 years have been reported to the NHID. All reports may be sent to enforcement@ins.nh.gov. Bulletin INS-23-024-AB
AUTOMOBILE INSURANCE
Massachusetts published a notice to all insurers designating certain 2024 model year vehicles as "high-theft" vehicles. The notice includes a list of all such designated vehicles. Property & Casualty Insurance Filing Guidance Notice 2023-A
CLAIMS / CLAIMS ISSUES
Colorado adopted a regulation to protect homeowners from unreasonable claims-handling delays during catastrophic disasters. The rule sets certain time limits and rules that insurers must follow in those situations. 3 CCR 702 Reg. 5-1-22
CROP HAIL INSURANCE
The Federal Risk Management Agency (RMA) announced its emergency procedures for crops damaged by excessive rainfall and catastrophic flooding in the Northeast United States. Managers Bulletin MGR-23-002
CYBERSECURITY
Oregon passed a law dealing with the protection of personal information of consumers. SB 619
LIABILITY INSURANCE
California enacted legislation which provides that a person who, in good faith and not for compensation, provides emergency care to a victim of an overdose is not liable for civil damages. AB 1166
Nevada's Division of Insurance provided guidance to insurers regarding passed law AB 398 which prohibits an insurer from issuing or renewing a liability insurance policy that contains certain provisions. This law is effective October 1, 2023, and applies to policies that provide third-party liability coverage. 2023 Assembly Bill 398 Guidance to Insurers
MISCELLANEOUS
Georgia published a directive to producers and insurers providing notification that pet insurance is included in the types of insurance which may to be sold by agents holding Life, Accident and Sickness, Property and Casualty, or Personal Lines. Companies can submit their insurance products for approval. Directive 23-EX-4
New Hampshire passed a law that sets regulatory standards for the sale of pet insurance. HB 249
South Carolina's Department of Insurance published tentative rates for credit property insurance for the year 2024. Bulletin 2023-05
NOTICE TO INSUREDS
Missouri updated a rule requiring additional information to be added to notices of cancellation, non-renewal, reduction, or adverse modification of standard fire policies. Additional information includes the insurer's address, toll-free number, and telephone number as well as the producer's name, address, and telephone number. It also updates the address for the Missouri Property Insurance Placement Facility and adds its website to the notice. 20 CSR 500-1.100
PERSONAL LINES INSURANCE
Michigan issued a bulletin announcing the annual adjusted maximum work loss benefit and maximum benefit payable for survivor's loss under policies of personal protection insurance. The new maximums will be payable effective 10-1-2023. Bulletin 2023-18-INS
PROPERTY INSURANCE
Colorado amended regulations aimed at improving the availability of fire insurance. It places restrictions on an insurer's ability to refuse to issue or renew a policy in certain, threatened areas. 3 CCR 702-5 Reg. 5-1-17
Louisiana published a bulletin notifying insurers of the requirements pertaining to premium discounts or credits provided to insureds who build or retrofit property consistent with the Fortified Home or Fortified Commercial standards. Affected insurers must submit rates and rating plans by 11-1-2023. Bulletin 2023-03
New Hampshire passed a law at the request of the insurance department which revises certain requirements for combined insurance coverage against fire and other perils. It applies to both personal and commercial lines insurance. HB 210
REGULATORY REPORTING REQUIREMENTS
Florida published an informational memorandum notifying residential property insurers of the requirements of 2023-172 regarding claims handling manuals. There is an annual requirement, due 8-1, to submit an attestation stating that they have created and use claims handling manuals that meet the requirements of the Florida Code and meet minimum, usual and customary practices. OIR-23-03M
REPORTS - DATA CALLS & OTHER REPORTS
Connecticut issued a notice reminding insurers that the annual data certification on technology and Big Data is due 9-1-2023. The annual certification form can be accessed on the state's website. Notice Dated 7-25-2023
Pennsylvania Insurance Department released its annual Private Passenger Automobile Data Call. The information is due no later than October 16, 2023. CALL FOR 2022 PENNSYLVANIA ACT 6 EXPERIENCE
THIRD PARTY ADMINISTRATORS
New Hampshire passed a law dealing with third party administrators. It provides that applicants for an administrator license may post a bond or other collateral acceptable to the Department instead of two years of audited financial statements. SB 31; 402-H:11
WORKERS' COMPENSATION
California issued a new, lower benchmark rate for Workers Compensation Insurance. The benchmark rate is lowered to $1.46 per $100 of payroll. Press Release Dated 7-11-2023
Delaware's Compensation Rating Bureau announced a new reporting requirement for a series of Calendar Accident Year Financial Data Calls. The first will be due 3-15-2024 and the DCRB will notify all reporters in the fall. Circular No. 1025
Indiana published a circular intended to clarify the impact of revisions to the workers compensation manual, including clarification of payroll inclusions and exclusions. Circular 2023-08
Maine enacted legislation to govern group self-insured reinsurance fronting arrangements. The fronting arrangement involves a fronting company, which issues a workers compensation policy, to a member of a group self-insurer, ceding premium and exposure for out-of-state employees. HP 886
Nebraska Workers' Compensation Court announced the web-based data entry application for Diagnostic Related Group (DRG) reports is now activated. The Workers' Compensation law requires insurers, hospitals, self-insured employers, and risk management pools to report claim and stop-loss threshold counts by DRG to the Court. Notice dated August 1, 2023
Ohio's Industrial Commission revised the outpatient medicine formulary to add, remove and change certain medications. Rule 4123-6-21.3
Pennsylvania's Compensation Rating Bureau informed all its members of a new reporting requirement due on April 15, 2024. This new requirement is a series of Calendar-Accident Year Financial Data calls. PCRB Circular 1798
Pennsylvania's Insurance Department announced it has received from the Pennsylvania Compensation Rating Bureau a filing to revise its experience rating plan for 2024. The plan revises eligibility criteria which will result in more employers qualifying for the experience rating plan. Notice dated July 15, 2023(B)
Washington promulgated an order allowing the use of telemedicine exams when there is no approved examiner in the worker's community. The order sets forth the types of exams that may be conducted via telehealth. WAC 296-23-358; 296-23-359
West Virginia's rating and statistical agent filed a proposed workers' compensation loss cost decrease of 12.7% effective November 1, 2023. Notice dated July 26, 2023
Wisconsin's Insurance Commissioner approved an overall decrease in the workers' compensation rate level of 8.39%. The revised rates and rating values were released effective October 1, 2023, for new and renewal policies. Circular Letter 3254