Property & Casualty News
December 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 LICENSING AND APPOINTMENT
Kansas published notice of producer application fees for 2024. Notice of Application Fee Amounts 11/09/2023
Wisconsin's Insurance Department announced the process for agent appointment renewals. The billings are available and payments may be submitted starting January 5, 2024. Bulletin dated November 14, 2023
Wyoming's Insurance Department published the timeline for 2024 agent appointment renewals and procedures. Posting to DOI website on December 13, 2023
AUTOMOBILE INSURANCE
North Carolina's Reinsurance Facility (NCRF) informed member companies of a commercial auto loss recoupment. A surcharge of 3.74% will be implemented on April 1, 2024, for all new and renewal commercial auto policies effective on or after April 1, 2024, through September 30, 2024. RF Circular Letter RF-23-17
CREDIT FOR REINSURANCE
Maryland amended its credit for reinsurance regulations. The revisions remove the Commissioner's authority to remove a reciprocal jurisdiction from its approved list when that jurisdiction is the subject of a covered agreement between the US and that jurisdiction. 31.05.08
CYBERSECURITY
New York’s State Department of Financial Services alerted carriers to the threat of a cybersecurity vulnerability known as "Citrix Bleed." Carriers are advised to assess their risk and act accordingly. Industry Letter dated November 14, 2023
FINANCIAL REGULATION
Kentucky published a bulletin notifying companies of the electronic filing requirements for all financial documents, including annual statements, effective immediately. Bulletin 2023-05
LIABILITY INSURANCE
Minnesota published a notice to all property casualty insurers of the adoption of the Family Protection Act. The act, effective 01/01/2024 (for auto insurance) and 05/01/2024 (for boat insurance) prohibits certain exclusions or limitations when the injured party is an insured other than the named insured or a member of the insured's household or family. The act also requires boat policies to offer a declination of coverage notification. Notice dated 11/01/2023
MISCELLANEOUS
Florida adopted amendments to statutes to amend the definition of "scrutinized company." The state Board of Administration will maintain a list of scrutinized companies with activities in Iran Terrorism Sectors. Domestic companies are required to annually file a list of companies in which they have investments which are on the Scrutinized Companies list. HB 5
Hawaii published a bulletin reminding insurers that all insurance companies are encouraged to work with residents who have lost homes, businesses, and employment due to the wildfires. Companies should continue to refrain from cancelling due to non-payment of premium, work with insureds on structured payment plans, waive late fees and penalties, extend timeframes, and otherwise cooperate with insureds through at least March 5, 2024. Memorandum 2023-7A
Michigan released the List of Michigan Municipalities Participating in the Fire Insurance Withholding Program effective January 1, 2024. Edition 162 released 12/01/2023
Michigan's Insurance Commissioner published the annual adjustment of the fire insurance maximum escrow under the Michigan Insurance Code. The adjustment is effective January 1, 2024. Bulletin 2023-22-INS
New York withdrew Circular Letter 6 (2001) and no longer requires fingerprinting. The submission requirements for biographical affidavits and independent third-party verification for officers have been updated. Notice dated December 1, 2023
PREMIUM TAX
New Hampshire's Insurance Department published 2023 premium tax instructions for property and casualty carriers and risk retention groups. Notice dated November 27, 2023
PROPERTY INSURANCE
California announced that a state court has upheld the Commissioner's order that the California FAIR Plan offer homeowners a more comprehensive insurance option. Press Release 11/29/2023
Louisiana issued an advisory letter, clarifying and restating an earlier advisory letter on the topic of storm and hurricane deductibles. The department clarifies that all insurers using a separate deductible to be applied in place of any other deductible resulting from a named storm or hurricane shall apply the deductible on an annual basis to all named storm or hurricane losses that year. The department further explains that a named storm is a storm that has been declared a named storm by the National Hurricane Center of the National Weather Service. Advisory Letter 2018-01 Revised and Reissued
REPORTS - DATA CALLS & OTHER REPORTS
Delaware issued a bulletin reminding property and casualty companies writing certain lines of business that the deadline to submit an action plan, detailing how to resolve reporting problems, was due 11/20/2023. Companies subject to the reporting requirements, who have not yet submitted a plan should do so immediately. Domestic-Foreign Bulletin 55 (REISSUED)
Texas Department of Insurance has issued a data call to carriers writing private passenger and commercial automobile, homeowners, workers' compensation, commercial and residential fire, and other lines of P&C insurance. This data call is due by February 2, 2024. Bulletin B-0014-23
SURPLUS LINES
Oklahoma's Insurance Commissioner announced the adoption of the Surplus Lines Information Portal (SLIP) for reporting and paying surplus lines premium taxes. This change is effective for policies and endorsements effective January 1, 2024. Bulletin 12-2023
TRADE PRACTICES
Alabama adopted amendments to its rebating limitations, including raising the limit of allowable value from $15 to $100 (non-cash), per family. 482-1-088
Illinois enacted amendments to the Consumer Fraud and Deceptive Business Practices Act, including required content and disclosures for postcards used to solicit contact from consumers. SB 1440
Michigan adopted the uniform power of attorney act. The act sets requirements for a power of attorney to be granted, guidelines for permissible acts and duties and penalties for violations. HB 4644
Michigan amended its law governing producer practices. An agent will be considered a fiduciary for all money received and held by the agent. Effective 05/05/2024, the act provides for additional duties when acting as a fiduciary in the handling of funds. HB 4376
WORKERS' COMPENSATION
California announced it has opened registration for its next Workers Compensation Educational Conference, scheduled for March 7-8, 2024, in Los Angeles, CA. The event is open to claims administrators, attorneys, medical providers, employers, and others. Notice Dated 12/04/2023
Connecticut announced that, effective 1-1-2024, new workers compensation insurance rates will be reduced by 10%. The notice includes a chart of rate changes over the past 10 years. Notice Dated 11/15/2023
Nevada Workers' Compensation Section advised workers' compensation insurers and self-insured employers and associations of self-insured employers of a reporting requirement. Each entity must submit Fiscal Year 2023 WCS Workers; Compensation Claims Activity Report and Statement of Inactivity by January 12, 2024. Letter dated November 21, 2023
Oregon's Workers' Compensation Division informed workers' compensation insurers and self-insured employers of optional use of updated Spanish translations. Bulletin 315 (Revised)
Texas Division of Workers' Compensation adopted amendments pertaining to claiming death benefits. 28 TAC 122.100
Texas Division of Workers' Compensation released its annual change to the Medical Fee Guideline conversion factors based on the Medicare Economic Index (MEI). The MEI for 2024 reflects an increase of 4.6%. 28 TAC 134.203, Labor Code 413.011(a)
Wisconsin's Department of Workforce Development announced the maximum rates for Worker's Compensation for the year 2024. The rates will increase to $1,296 per week for temporary total disability, permanent total disability, and death benefits effective January 1, 2024. Insurance Letter 541