Property and Casualty News
December 2014
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.
AGENT / PRODUCER CONTINUING EDUCATION
Ohio revised its regulation that establishes a procedure for the review and approval of continuing education (CE) courses which licensed agents must complete for the purpose of maintaining their licenses. Rule 3901-5-03
AGENT / PRODUCER LICENSING AND APPOINTMENT; FEES
New Hampshire will no longer mail producer and adjuster licensing renewal notices. Emails to the business email address will replace the mailed notices, and will be sent approximately 60 days prior to expiration. Bulletin of November 14, 2014
AUTOMOBILE INSURANCE
Pennsylvania revised definitions relating to commercial vehicle laws. "Emergency vehicle" now includes state emergency management vehicles and "fire department vehicle" now includes vehicles that are owned/leased by a fire relief association and used by a fire department. I - HB 241
CLAIMS/CLAIMS ISSUES
New York amended their laws regarding court-ordered appraisals for losses covered under fire insurance policies. I - AB 9346
Oregon amended the previous bulletin regarding reporting of loss for self-insured employers/employer groups. The changes are effective 1/1/2015. Bulletin 209 (Revised)
COMMERCIAL LINES INSURANCE
Pennsylvania has deregulated specific commercial lines from filing requirements. Bulletin 2014-10
DATA CALLS/REGULATORY REPORTING
New York has issued a data call via a November 25, 2014 letter. Included in the data call are Insurance Availability Survey, Annual Free Trade Zone Report and Special Homeowners Insurance Supplement. The worksheets are available on the Department's website. Letter dated 11/25/14 and Section 308
FEE SCHEDULES
Indiana has postponed the requirement of electronic filing of premium tax, surplus lines tax, and company renewal fees. The requirement was previously set for 1/1/2015, but concerns about the OPTins system have caused the Department to do further study. Companies can file via paper until at least 3/31/2015. Bulletin 211
FILINGS: PROPERTY/CASUALTY
Washington issued a message that companies do not need to notify the OIC if Property & Casualty forms are no longer in use or withdrawn. All such filings will be rejected. State Message dated 11/20/14
FINANCIAL REGULATION
Ohio adopted rules regarding submission requirements of derivative use plans to the Ohio Department of Insurance. The new rules were effective 11/27/2014. Rule 3901-3-12
PREMIUM TAX
Maryland is developing a new online premium tax reporting and filing system. Until it is finalized, premium tax filings and payments should be handled in hard copy. Bulletin 14-25
PROFESSIONAL LIABILITY
Kansas notes that companies writing professional liability insurance must have the Malpractice Liability on their Certificate of Authority. The bulletin also revises the definition of "health care provider" and clarifies the required amount of professional liability insurance for providers. Bulletin 2014-4
PROPERTY INSURANCE
Ohio amended their definitions to revise "qualified individual" and "controls" regarding boiler and pressure vessels. The changes are effective 1/1/2015. Rule 4101:4-1-01
REGULATORY REPORTING REQUIREMENTS
Maryland has requested that certain companies writing P&C lines report information relating to Homeowners and Private Passenger Automobile premiums. The bulletin specifies that select insurers have been identified and will be contacted directly, and that other insurers need not respond. Bulletin 14-24
REINSURANCE
Ohio revised rules relating to reinsurance to more closely follow the NAIC's Credit for Reinsurance Model Regulation. Rule 3901-3-16
RISK-BASED CAPITAL
South Dakota updated their reporting requirements for risk-based capital. 20:06:36
SERFF FILINGS
North Dakota issued a memorandum explaining that they began offering online access to certain form and rate filings through their website and in conjunction with the National Association of Insurance Commissioners SERFF program. Memorandum dated November 3, 2014
Texas amended their laws for premium rate filings for property and casualty insurers. The revisions affect requirements for SERFF filings and are intended to increase transparency. 28 TAC s 5.9310, 9320, 9322, 9330-9337
TITLE INSURANCE/AGENTS
Nevada reminds title insurers and underwritten title companies how it enforces rebate and inducement laws. Bulletin 14-009
TRAVEL INSURANCE
Arizona requires an individually licensed insurance producer to be responsible for each business entity producer's compliance and training. The individual "travel accident ticket and baggage insurance producer" license no longer exists. Bulletin 2014-09
Michigan has rescinded Order 11-040-M regarding recognition of travel insurance as a limited line authority. Prelicensure education and examination requirements for a travel insurance limited line producer license are waived. Order No. 14-041-M
WORKERS' COMPENSATION
California Division of Workers' Compensation revised its EDI Implementation Guide, Version 2.0. The revisions included IK4 error codes for 999 acknowledgements and reporting of lump-sum lien settlement payment data. DWC Notice dated November 13, 2014
Florida revised rules regarding workers' compensation reimbursement for hospitals for certain outpatient services. The effective date is 1/1/2015. FAC Rule 69L-7.501
New Jersey raised the maximum workers' compensation benefit weekly rates for 2015. The rise in rates is effective 12/15/2014. NJAC 12:235-1.6
CAREER OPPORTUNITY!
First Consulting has on outstanding career opportunity for the person who wants to join a team of compliance professionals in a leadership role.
To find out more about this opportunity, click here.
RESEARCH AT YOUR FINGERTIPS
As part of our ongoing effort to help our clients access the research they need, First Consulting has developed several web-based research services. Subscribers to these services are able to review the current laws and regulations specific to their issues of concern in an easy to read format. Our current web-based services are:
- Anti-Fraud Compliance, detailing state requirements regarding each state’s definition of a fraudulent insurance act, use of fraud warnings, content and filing of anti-fraud plans and fraud reporting duties.
- HIV Informed Consent Service, describing HIV consent requirements, allowable AIDS application questions and HIV testing and screening protocol.
- Third Party Administrator Licensing Service, which outlines whether an entity needs to be licensed as a TPA and the requirements for obtaining such license.
In addition we offer complimentary on-line research on a variety of topics of interest to insurers in all lines of business. We can also provide research tailored to your specific needs.
To learn more, please contact Sean Cox or visit any of the links above.
Sean Cox
Sean.Cox@FirstConsulting.com
816.391.2737
LET FIRST CONSULTING STRETCH YOUR RESOURCES – MONITORING TPA’S
Working with TPA’s brings on regulatory requirements that may stretch your resources. First Consulting is happy to announce a couple tools that can assist you in monitoring your TPA’s.
- As of January 2015, we can deliver new online individual fraud training, to supplement our live webinar fraud training already available.
- We can also assist your company with establishing anti-fraud procedures and processes, record keeping, reporting requirements, and training as required in some states.
And, as always, our On-Line Research Services – Third Party Administrator Licensing Service – answers questions about TPA Licensing. This On-Line Research Service enables Insurers, as well as TPA’s, to find answers about:
- What is a TPA?
- What organizations need to be licensed?
- Where does a TPA need to be licensed?
- What forms are needed for licensing?
- What are the responsibilities of Insurers that use TPA’s?
- What other requirements must be met?
Click here for more details, including the opportunity to take a Virtual Tour of our On-Line Services, pertaining to TPA Licensing Services.
Or, you can contact me regarding any of the above services.
Scott Sheffer
816.391.2742
Scott.Sheffer@FirstConsulting.com