Property & Casualty News
December 2016
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.
ADJUSTERS
California issued a notice to education providers and other interested parties regarding new prelicensing education requirements for public adjuster license applicants. Licensing Notice dated November 16, 2016
AGENT / PRODUCER CONTINUING EDUCATION
Alabama amended its regulation regarding education requirements for insurance producer and service representatives. 482-1-110-.05
AGENT / PRODUCER LICENSING AND APPOINTMENT
Connecticut issued a notice providing licensing information for certified insurance consultants. Notice dated November 1, 2016
Connecticut issued a notice regarding the new online pay portal used to expedite transactions for licensees. Notice dated November 18, 2016
Mississippi issued a bulletin advising that the state will no longer send certain administrative licensing notices via the U.S. mail, but will instead send these notices by electronic mail. The Department is requesting that licensees verify their email addresses immediately. Bulletin 2016-12
New York enacted legislation regarding the expedited licensing of a spouse of an active duty member of the armed forces of the United States, national guard or reserves who has a substantially equivalent out-of-state license. AB 4394
Puerto Rico issued a circular letter providing guidance regarding the new online procedure when applying for examination for insurance and provisional licenses. Circular Letter CC-2016-1893-SR
Puerto Rico issued a ruling to all producers, authorized representatives, adjusters, consultants, and general agents regarding the use of "Doing Business As" or "DBA" names. Ruling Letter CN-2016-205-SR
Rhode Island issued a bulletin superseding Bulletin 2003-6, defining Managing General Agent (MGA) and providing additional information for applying for a MGA line of authority. Bulletin 2016-7
Rhode Island published a bulletin regarding voluntary insurance producer business entity licensing for residents and non-residents. Bulletin 2016-6
ARBITRATION
Montana issued a bulletin to all insurers pertaining to insurance policy provisions that establish arbitration terms. The bulletin advises that policy forms that establish terms of a future arbitration will not be approved. Advisory Memorandum of November 4, 2016
Puerto Rico issued a ruling to all domestic and foreign insurers, and service contract providers stating all insurance policies and service contracts, that are currently in effect, must be amended to include the arbitration clauses. Ruling Letter CN-2016-206-AP
AUTOMOBILE INSURANCE
California amended its regulation regarding the automobile insurance low cost program plan of operations. The date August 9, 2016 was replaced with January 1, 2017. T. 10 s 2498.6
New York amended its law regarding indemnity provisions in motor carrier transportation contracts. AB 7307
Texas issued an order pertaining to the rate changes for private passenger and commercial automobile insurance provided through the Texas Automobile Insurance Plan Association, effective February 1, 2017. 2016-4768 and Bulletin B-0023-16
Washington amended its regulation regarding mandatory offering of personal injury protection and required language when underinsured motorist coverage is rejected. 284-20-300
CAPTIVES
Colorado amended regulations concerning the formation and operation of captive insurance companies. CCR 702 Reg. 2-3-1
Nevada amended several regulations regarding captive insurers and annual reporting. NAC 694C (LCB File No. R080-16)
CERTIFICATE OF AUTHORITY FILINGS
Colorado amended its regulation concerning issuance of a certificate of authority. 2-1-7
IS YOUR COMPANY PLANNING TO EXPAND ITS AUTHORITY?
A name change, re-domestication, acquisition, merger, or adding a new line of business requires a state filing to change an insurance company's certificate of authority. Click here to see how First Consulting can help.
CORPORATE GOVERNANCE
Rhode Island promulgated regulations to set forth the procedures for filing the Corporate Governance Annual Disclosure (CGAD) and provide the required content of the CGAD. 161-RICR-200-45-
CREDIT FOR REINSURANCE
Montana amended provisions regarding credit for reinsurance. 6.6.3801
DISASTER / CATASTROPHIC EVENT
Maryland repealed its regulation regarding temporary moratoriums and weather events. COMAR 31.08.12.06
North Carolina issued Executive Order No 109, Bulletin 16-B-07 and an amendment to the bulletin issued November 3, 2016 concerning a major disaster declaration beginning October 4, 2016 in certain counties. Specified entities are required to provide customers adversely affected in the disaster area specific relief concerning payments, submission of claims and other responsibilities. Bulletin 16-B-7 (Second Amendment 11/3/2016)
South Carolina issued a list of frequently asked questions regarding Hurricane Matthew Emergency Regulation 69-78 and data call. Notice November 17, 2016
FILINGS: PROPERTY / CASUALTY
Louisiana amended its regulation regarding filing and review of property and casualty insurance policy forms and related matters. LAC 37:XIII.10113
Maine issued a bulletin explaining why property and casualty rate filings must include the insurer's underwriting guidelines. Bulletin 415
THE SECRET TO STARTING FRESH IN 2017
Finish those 2016 projects and start fresh! Click here to see how First Consulting can help.
HOLDING COMPANIES
Hawaii revised its regulations regarding insurance holding company systems. 16-14-1 +
Louisiana amended its regulation regarding insurance holding companies. LAC 37:XIII.101
Maryland issued a bulletin to all insurers advising of the new forms for use in compliance with the Insurance Acquisitions Disclosure and Control Act, effective January 1, 2017. Bulletin 16-31
MISCELLANEOUS
Pennsylvania amended its law regarding initial and renewal licensing requirements under the Money Transmitters Act, effective January 2, 2017. HB 850; 7-53-6106
Pennsylvania issued a temporary regulation relating to insurance requirements for medical marijuana organizations. Temporary 28 s 1141.21
Puerto Rico issued a circular letter advising that an insurer is expected to have personnel that are capable of servicing policies in the language in which they were issued. Circular Letter CC-2016-1895-CM
Puerto Rico issued a circular letter advising that it has adopted a procedure and form for making changes to contact information for International Insurers and Reinsurers. Circular Letter CC-2016-1894-ARI
Rhode Island published a bulletin outlining 2016 legislative changes affecting insurance. Bulletin 2016-5
NOTICE TO INSUREDS
Alabama amended its regulation regarding the required annual privacy notice to customers. 482-1-122-.06
South Dakota published a bulletin to relieve licensees of the requirement for annual privacy notices to customers so long as the licensee: 1) adheres to state regulation providing nonpublic personal information to nonaffiliated third parties, and, 2) has not changed its policies and practices regarding such information since its most recent disclosure was sent to consumers. Bulletin 16-06
Washington amended its regulation regarding the required annual privacy notice to customers. WAC 284-04-120 and -205
PERSONAL LINES INSURANCE
Maryland issued a bulletin regarding the notice of renewal and expiring premiums for personal insurance. Bulletin 16-33
PREMIUM TAX
Arkansas published a bulletin applicable to any insurer or other entity required to report and pay premium taxes, Anti-Fraud Fees, or Companies' Financial Regulation Fees. Previously, these items were moved to OPTins on an optional basis. As of January 2017, such submissions via OPTins become mandatory. Bulletin 12-2016
PROFESSIONAL LIABILITY INSURANCE
District of Columbia enacted the Substance Abuse and Opioid Overdose Prevention Amendment Act of 2016 to relieve physicians of liability for negligent medical treatment at the scene of an accident. B 602
New Hampshire issued an order saying that there is no competitive market in New Hampshire for the medical malpractice insurance for physicians, surgeons and hospitals. Ins 16-027-AP
Pennsylvania enacted legislation relating to safe opioid prescriptions and patient voluntary nonopioid directives. SB 1368
REINSURANCE
Nevada amended several regulations regarding reinsurance. One of the changes requires an intermediary clause be included in a reinsurance agreement. NAC 681A (LCB File No. R079-16)
Oklahoma amended its regulations regarding reinsurance including, among other things, credit for reinsurance, annual statements filed by an accredited reinsurer, reinsurers maintaining trust funds, requirements for reinsurers to become certified reinsurers. It also establishes a new Certificate of Certified Reinsurer to be submitted by certified reinsurers and a new appendix for annual reinsurance review. This is an emergency rule and is effective November 1, 2016 through September 14, 2017. Emergency 365:25-7-60 through 365:25-7-73
REPORTS - ANNUAL / QUARTERLY STATEMENT
Colorado amended its regulations concerning a company's annual audited financial reports, audit committee and internal control department requirements. 3 CCR 702 Reg. 3-1-4
REPORTS - DATA CALLS & OTHER REPORTS
Georgia amended directive 16-EX-3 regarding fire loss quarterly filing requirements by updating contact information. Directive 16-EX-4
WHAT REPORTS WILL YOU SUBMIT IN 2017?
Want help with CGAD, ORSA and other reporting readiness?
First Consulting has answers! Click here to learn more.
SOLVENCY / FINANCIAL CONDITION
Delaware amended the criteria the DOI will use to determine whether an insurer's continued operation might be deemed to be hazardous to its policyholders, creditors or the general public. 304 s 1.0
TITLE INSURANCE / AGENTS
Alabama amended its regulation regarding new attorney exemptions from licensing requirements for title insurance. 482-1-148-.01
TRANSPORTATION NETWORK
Nebraska amended its motor carrier rules and regulations regarding transportation network companies (TNCs). 291 NAC 3-012
Pennsylvania amended its laws pertaining to transportation network companies and services. SB 984
UNCLAIMED PROPERTY
Iowa updated rules regarding online claims for Unclaimed Property. 781-9.1
WORKERS' COMPENSATION
Colorado published an interpretive bulletin regarding the new Notification Rule and amendments to the Authorization Rule for Workers' Compensation, effective January 1, 2017. Interpretive Bulletin 13-17
Nevada amended its regulations regarding determination of employer tangible net worth for self-insured employers. NAC 616B.433
New Hampshire amended its regulation regarding managed care programs for Workers' Compensation. Lab 701.01
New Jersey readopted with amendments the New Jersey Workers' Compensation Managed Care Organizations (WCMCOs). NJAC 11:6-2.4
New York issued a bulletin allowing workers’ compensation insurers to request a hearing to consider whether or not continuing opioid usage is necessary for New York injured workers. The bulletin outlines hearing procedures and responsibilities for insurers and claimants and required insurance coverage under certain conditions. Bulletin WC 46-892
Oregon amended its regulation regarding standards for the certification of Workers' Compensation claims examiners. OAR 436-055-0003
Texas issued an order regarding amendments to the National Council on Compensation Insurance Basic Manual for Workers' Compensation and Employer Liability Insurance. Order No. 4752
Wisconsin issued an insurance letter regarding the new supplemental benefit reimbursement assessment for Workers' Compensation. Insurance Letter 513
THE SECRET TO STARTING FRESH IN 2017
Let First Consulting finish those 2016 projects!
As 2016 comes to a close it’s good to look back at the many accomplishments and achievements. However, many of our clients also have a few lingering projects that didn’t quite get completed as intended this year. Unfortunately business doesn’t wait for those projects to be completed before beginning new projects.
Get Your Projects Back On Schedule
Whether your projects include:
- Product development
- State variation drafting
- State filings
- Or that pesky research project/state survey that no one ever had time to get to!
First Consulting has the experience to complete the project quickly and accurately.
Contact me today to learn how First Consulting can get your projects back on track and give you a fresh start to 2017!
Sean Cox
Sean.Cox@FirstConsulting.com
816.391.2737
IS YOUR COMPANY PLANNING TO EXPAND ITS AUTHORITY?
A name change, re-domestication, acquisition, merger, or adding a new line of business requires a state filing to change an insurance company's certificate of authority. The Uniform Certificate of Authority Application (UCAA) has streamlined the filings, but the process is still time consuming. Making such filings may be a one-time event for your staff and the experience may not be used again.
First Consulting can help!
We are experienced with the UCAA and we are also familiar with the various state-specific requirements. Our services include advising what materials are needed for each state’s filing, assembly of the filings, and follow up, as necessary, to secure approval of the filings. Having First Consulting provide these services can free your staff for other functions and projects.
Click here for information on how we can assist you with UCAA filings.
E-mail or call me today for a no obligation proposal and cost estimate
John Palmer
816.391.2744
John.Palmer@FirstConsulting.com