Property & Casualty News

December 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!


Washington amended the term of initial and reinstated individual licenses. These licenses will now be valid from their date of issuance until the end of the licensee's next birth month plus one year instead of the date of the licensee's next birthday anniversary plus one year.     284-17-423


Iowa adopted amendments to Chapter 615 relating to motor vehicle driver's license sanctions.     761-615

Virginia issued an administrative order regarding the revision of Administrative Section 2 and Private Passenger Symbol Rule 21 of the plan manual. Changes would limit the eligibility for physical damage coverage to vehicles with an original cost new of $75,000 or less. This applies to new and renewal policies effective on and after January 1, 2019.     Administrative Order No. 12070


California has adopted regulations relating to automotive repair dealers, specifically disclosure and authorization requirements regarding dealer obligations before additional diagnosis or method of repair.     T. 16 s 3352 +


Tennessee issued rules setting forth the procedures for filing and the required contents of the Corporate Governance Annual Disclosure.     Chapter 0780-01-35


South Carolina issued the third in a series of bulletins addressing the implementation of the South Carolina Insurance Data Security Act. This bulletin specifically addresses exemptions from the information security program requirements.     Bulletin 2018-12


Alaska issued a disaster declaration bulletin due to the effects of the earthquake on 11/30/18. The Division of Insurance directs carriers to provide relief to affected policyholders by offering extensions to premium grace periods of at least one week and work with policyholders in the collection of premiums.     Bulletin B 18-15

California issued a notice calling on property insurance companies to implement emergency expedited claims handling procedures and billing grace periods to help residents and businesses begin their recovery more quickly.     CA Notice of 11/15/18

Georgia has implemented procedures for insurance companies to acquire, on an expedited basis, replacement or salvage titles of vehicles damaged in Hurricane Michael. This only applies to total loss settlements where the original title was lost, damaged, or destroyed.     Notice regarding Expedited Salvage Title Impacted by Hurricane Michael

New Mexico issued executive orders declaring a state of disaster due to severe storm monsoon storms and flooding in Luna and Socorro Counties.     Executive Orders 2018-050 and 2018-051

North Carolina issued an order activating a disaster mediation program. It establishes a nonadversarial alternative dispute resolution procedure for a facilitated claim resolution conference prompted by the critical need for effective, fair, and timely handling of insurance claims arising out of damages to residential property as the result of an event for which there is a disaster declared within 60 days of the event.     Order dated 11/2/18

Oklahoma issued an executive order declaring a disaster emergency caused by the severe storms, tornadoes, and straight-line winds, beginning 11/30/18, which caused damage to public and private property.     Executive Order 2018-30


Louisiana has amended regulations regarding requirements for policy form filings. The Department will notify an affected insurer in writing prior to withdrawing approval of a previously approved filing, with explanation of the alleged violation. Insurers can show disputed forms are in compliance within 15 days or request a hearing.     LAC 37:XIII.10113

Virginia issued an administrative letter regarding the development of a new online Company Assessment Filing Portal for the submission of special assessment filings and payments. Effective 1/1/19, these filings are required to be submitted electronically via the portal. The submission and the payment are due annually on March 1.     Administrative Letter 2018-05


Michigan issued an order relating to filing of NAIC forms required by the Holding Company Act. Revisions have been made to forms and instructions. Failure to comply with the new instructions may result in rejection of the submitted material and the entity may be subject to penalties.     Order No. 2018-075-M


Idaho has implemented requirements that Premium Taxes and Fees, and Continuation Fee Statements can only be paid online as of January 1, 2019. The Insurance Department uses "PremiumPro", and insurers can access filing forms at no cost on the website for TriTech.     Notice of 11/30/18

New Mexico issued a bulletin stating that all premium tax reports and payments must be submitted electronically through the Tritech website. Quarterly premium tax reports and any associated estimated premium tax payments are due on April 15, July 15, October 15, and January 15 of the following year.     Bulletin 2018-17


Maryland amended its regulations to align with changes to the NAIC Model Regulation #205 Annual Financial Reporting adopted in 2014. This includes, among other things, definitions and requirements for internal audit functions.     COMAR


Illinois amended regulations relating to data reporting. Changes include collection procedures, coding conventions, and medical malpractice reports and filing requirements.     50 Ill. Adm. Code 4203.10

Rhode Island has issued a bulletin to notify insurance companies licensed to write private passenger automobile liability policies that they will be required to electronically submit their full book of business to RIIVS on a WEEKLY basis, beginning 1/1/19. The insurance policy data provided in book of business files is matched to DMV registration data to determine if a registered vehicle is insured.     Bulletin 2018-15


Missouri issued a message through SERFF stating that as of 1/1/19, the filing fees will change to $150. The fee applies to each filing, each company, regardless of the number of forms or attachments submitted within the filing.     SERFF message dated 12/4/18


Nevada issued a bulletin providing guidance and clarification on the due date for filing annual reports of third-party administrators.     Bulletin 18-006


Montana issued a message via SERFF to inform title insurers and agents of its interpretation of the law and its expectation of insurers regarding cancellation charges/fees and individual risk rate submissions.     SERFF Message dated 12/6/18


California adopted regulations that incorporate the Traumatic Brain Injury Guideline into the medical treatment utilization schedule.     T. 8 s 9792.22California issued a notice regarding ACORD Form 130 which is issued by insurers and producers as an application for workers' compensation insurance coverage. California requests that insurers and agents cease collecting responses to questions regarding disability and age on the form. If these questions are used for rating purposes, it would violate Insurance Code section 11735.     CA Notice of 11/14/18

Indiana has issued a data call that is required for carrier groups with at least 1% market share in the state as well as affiliate groups required to report in any NCCI state. Initial evaluation begins in second quarter 2020 and reporting begins third quarter 2020.     Circular 2018-08

Kansas revised a regulation regarding workers' compensation claims. Electronic filings are required by each party represented by legal counsel.  Registration and access instructions are included. Documents are provided for any party not represented by legal counsel that chooses not to use the electronic filing system.     51-1-1

Michigan has issued an indemnity data call for member groups that have a premium volume of 1% or greater of the statewide total. Eligible carrier groups were to be notified by December 14, 2018, and information should be provided by January 18, 2019.     WC Circular Letter 307

Michigan issued notice that the PO box mailing addresses for the Compensation Advisory Organization of Michigan and Michigan Workers' Compensation Placement Facility have been eliminated. The included business address should be used.     WC Circular Letter 305

New Jersey issued a bulletin and a statistical circular (issued with the bulletin) eliminating hardcopy reporting of policies, policy-related documents, including cancellations and reinstatements, and unit statistical report data, effective 7/1/19. Carriers must submit policy and statistical transactions electronically through the Compensation Data Exchange, Secure File Transfer Protocol, Bureau web upload, or Manage Data, and they still need to send hardcopy cancellation, reinstatement, and nonrenewal notices to insureds.     Manual Amendment Bulletin No. 486/Statistical Circular No. 125

New Jersey issued a circular letter announcing that the Compensation Rating and Inspection Bureau has joined other independent Data Collection Organizations (DCOs) in implementing the Single Sign On (SSO) connection. SSO facilitates access to participating DCO websites.     Circular Letter No. 1950

West Virginia issued an informational letter to clarify eligibility requirements for West Virginia employers who wish to submit an application for a letter of exemption from mandatory West Virginia workers' compensation insurance coverage. It also makes clear that while an independent contractor performing services for an employer may not need to be covered under an employer's workers' compensation insurance policy, an independent contractor is not an exempt employer for purposes of applications to the Insurance Commissioner for letters of exemption.     Informational Letter 201

Wisconsin issued a circular letter announcing a new web service, called WC Underwriting, that will provide carrier members access to current experience modification factor data without human interaction.     Circular Letter 3185