Property & Casualty News
December 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!
ACTUARIAL
Washington amended a regulation to change the credentials of an actuary who can sign the Statement of Actuarial Opinion for property and casualty insurers to conform to the 2019 NAIC updated requirements. WAC 284-07-060
COMMERCIAL LINES INSURANCE
California amended the FAIR Plan of Operations to increase combined coverage limits under the Commercial Property Program and the Businessowners Program. Order 2021-4
CREDIT FOR REINSURANCE
New Hampshire readopted its reinsurance regulation with changes. This regulation allows credit for reinsurance ceded by a domestic insurer to an assuming insurer. Ins 601.01
CROP HAIL INSURANCE
Minnesota's Commissioner of Insurance updated the requirements for Crop-Hail Insurance Filings. Bulletin 2021-2
FILING REQUIREMENTS / PROCEDURES
Illinois amended its law so that travel insurance which provides coverage for sickness, accident, disability, or death occurring during travel, either exclusively, or in conjunction with related coverages of emergency evacuation or repatriation of remains, or incidental limited property and casualty benefits such as baggage or trip cancellation may be filed for purposes of rates and forms under either an accident and health line of insurance or an inland marine line of insurance. HB 1976, 215 ILCS 5/1655
FLOOD INSURANCE / NFIP
Alabama announced its intention to foster a viable private flood insurance market since there appears to be a gap in coverage between claims filed through the National Flood Insurance Program (NFIP) and those that come from outside high-risk flood areas. Insurers are not required to file rates for flood insurance other than on motor vehicles, but forms must be filed. Neither Regulation 136 nor Bulletin 1010-10 will apply to private flood insurance. Bulletin 2021-10
MISCELLANEOUS
Alaska changed its process regarding filing of business address changes, email, phone number, FAX, and mailing address. The Division now accepts electronic address change amendments for business entities through NIPR. If a paper change form is submitted, there is an additional $50 processing fee unless the licensee is moving to or from Alaska in which event it must be submitted on paper. Bulletin B21-07
Colorado's Division of Insurance issued a bulletin giving guidance to insurers subject to the new Hazard Mitigation Fee established by HB 21-1208, 24-33.5-1619 C.R.S. The bulletin is intended for all insurers issuing policies or contracts insuring property and risks in Colorado under Fire, Allied Lines, Private Crop, Farmers Multiple Peril, Homeowners Multiple Peril or Commercial Multiple Peril. Insurers are required to pay a fee of $2 per policy held between March 1, 2022, and December 31, 2022, no later than July 1, 2023. Bulletin B-1.36
Michigan's Insurance Department announced that the annual adjustment of the fire insurance maximum escrow withholding amount is $13,835 effective January 1 through December 31, 2022. Bulletin 2021-41-INS
REINSURANCE
Delaware amended its reinsurance regulation and law to bring it current with the NAIC most recent updates. 18 DE Admin. Code 1003
REPORTS - ANNUAL / QUARTERLY STATEMENT
Connecticut issued a bulletin addressed to accredited reinsurers regarding 2021 and 2022 financial filing requirements. Certificates of accreditation will be automatically renewed on June 1, 2022, subject to certain standards. Bulletin FS-4AR-21
Connecticut issued a bulletin addressed to domiciliary and non-domiciliary carriers outlining the timeline, forms, and general instructions for filing the 2021 annual report. There are checklists, notes and general requirements for property and casualty carriers and title companies. Bulletin FS-4-21
Connecticut issued a bulletin addressed to foreign eligible surplus lines insurers regarding 2021 and 2022 financial reporting requirements. Bulletin FS-4SL-21
Connecticut's Insurance Department issued a bulletin regarding the financial reporting requirements for Captive Insurers licensed in Connecticut. Bulletin FS-4C-21
REPORTS - DATA CALLS & OTHER REPORTS
Connecticut asked insurers and surplus lines brokers to file annual surcharges for the Healthy Homes Fund no later than April 30. Policies subject to the surcharge are certain types of personal risk insurance coverage and individual residential unit that is part of a condominium or common interest community. Failure to remit surcharges may result in a $15,000 fine. Updated Notice dated December 1, 2021- Healthy Homes Fund Annual Report and Remittance Requirement
Louisiana’s Insurance Commissioner is requiring all property & casualty insurers, including insurers that write private and/or excess flood insurance coverage and surplus lines insurers to complete a data call for catastrophe claims relating to Hurricane Ida. The first report is due January 7, 2022, for claims reported as of Friday, December 31, 2021. Bulletin 2021-10
New Jersey's Compensation Rating and Inspection Bureau announces a Special COVID-19 Pandemic-Related Data Call due by February 28, 2022. Advisory Bulletin 93
The Texas Department of Insurance issued a data call for 2021 annual experience and workers' compensation deductible plans due February 11, 2022. Companies impacted write private passenger and commercial automobile, homeowners’ multiple peril, workers' compensation, commercial multiple peril and general liability, commercial crime, surety, inland marine, medical professional liability, and others. Bulletin B-0029-21
The Texas Division of Workers' Compensation (DWC) extended again its mandatory data call through June 30, 2022, for information on COVID-19 injuries for certain insurance carriers. Bulletin B-0030-21
RISK RETENTION GROUPS
Connecticut's Insurance Commissioner issued a bulletin outlining the requirements for 2021 and 2022 financial filing and other requirements for Risk Retention Groups doing business in Connecticut. Bulletin FS-4RR-21
TITLE INSURANCE / AGENTS
Washington amended the Title Agent County Declarations Rule to require title agents to submit a declaration to the Insurance Commissioner's office to identify their exact counties of operations, including expansions, and provide proof of ownership or leasing rights for the applicable tract indexes. WAC 284-29-130
WORKERS' COMPENSATION
California Division of Workers' Compensation adjusted the Ambulance Services section of the Official Medical Fee Schedule to conform to changes in the Medicare payment system as required by Labor Code Section 5307.1 DWC Notice 2021-119 dated December 1, 2021
Florida's Division of Workers' Compensation issued an informational bulletin to all Florida Workers' Compensation carriers, self-insured employers, and third-party administrators regarding the Maximum Compensation Rate effective January 1, 2022. Informational Bulletin dated November 30, 2021
Kentucky amends its Workers' Compensation Hospital Fees for services and supplies provided to workers' compensation patients where the employer is required to pay for hospital treatment, including nursing, medical, surgical supplies, and appliances under KRS 342.020. 803 KAR 25:091
Kentucky revised the regulation that deals with individual self-insurers for workers' compensation to add new requirements. 803 KAR 25:021
The Texas Division of Workers' Compensation released its annual change notice to the Medical Fee Guideline conversion factors based on the Medicare Economic Index (MEI). The MEI for 2022 reflects an increase of 2.1%. Medical Fee Guideline Conversion Factors dated November 19, 2021
Washington published the 2022 Hourly Rates by Risk Classification Code and Fund. WAC 296-17A
Wisconsin issued a letter informing worker's compensation insurance carriers and self-insured employers of the new assessment rate for the annual Worker's Compensation Administrative Assessment. Payment information is also included. W/C Insurance Letter 532 dated November 29, 2021