Property and Casualty News
February 2017
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
Indiana readopted rules regarding continuing education requirements and amended the language in the retirement exemption form. Regulation 760:1-50-2+
Ohio removed references to the insurance agent education advisory council from its continuing education requirements. Insurance Code: 3905.481
Puerto Rico issued a circular letter to all domestic insurers advising that certain required courses or seminars are now offered online through an application that will be available twenty-four hours a day. Circular Letter CC-2016-1898-SR
AUTOMOBILE INSURANCE
New York amended the address of the Consumer Assistance Unit, Financial Frauds and Consumer Protection Division which is to be provided on any letter of explanation or rejection of any element of a claim. 11 NYCRR 216.7
Ohio enacted a new law authorizing an insurance company to bring action against a towing service under certain conditions. 4513.70
Pennsylvania issued a notice to insurers writing private passenger automobile insurance regarding an increase in the accident surcharge dollar threshold. Notice 2017-01
CLAIMS / CLAIMS ISSUES
Oregon adopted a rule regarding the disclosure of information about complaints regarding unlawful claims settlement practices, effective January 10, 2017. 836-005-0405
Oregon issued a notice regarding submission requirements for contact update notices, claims move notices, and claims processing service agreements for insurers and self-insured employers. Notice of December 22, 2016 (C)
CORPORATE GOVERNANCE
Ohio enacted legislation providing the corporate governance annual disclosure (CGAD) filing requirements. Senate Bill 273
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.
CREDIT FOR REINSURANCE
Oklahoma amended several sections pertaining to credit for reinsurance including, among other things, requirements for the filing of annual statements, maintenance of trust funds, reinsurance agreements and letters of credit. New appendices were also adopted. 365:25-7-60 +
Utah amended its regulation regarding credit for reinsurance to substantially conforms to the NAIC's Credit for Reinsurance Model Regulation. Rule R590-173-3
FEE SCHEDULES
Nevada adopted a temporary regulation revising initial and annual fees paid by certain insurers, effective January 20, 2017. LCB File No. T006-16
HOLDING COMPANIES
Nevada amended its requirements regarding the use of Form A - Statement Regarding the Acquisition of Control of or Merger with a Domestic Insurer. NAC 692C.020
Utah amended rules pertaining to insurance holding companies. Rule R590-70 *
LIABILITY INSURANCE
Ohio amended its laws regarding joint insurance pools for state universities and colleges, effective April 5, 2017. HB 384; 3345.202; 3345.203; 5726.01
Oklahoma adopted a new emergency rule requiring schools to maintain specified limits of commercial liability insurance for each commercial motor vehicle used to conduct behind-the-wheel instruction. 595:11-11-9
The Department of the Treasury issued a notice to provide guidance regarding how insurance recently classified as "Cyber Liability" for purposes of reporting premiums and losses to state insurance regulators will be treated under TRIA and Treasury's regulations for the Program. Notice of Guidance dated December 27, 2016
Utah amended its rule concerning underground storage tank requirements for owners and operators demonstrating financial assurance by other methods. Rule R311-206-5
Utah revised provisions regarding the certification programs and underground storage tanks operator training due to the new types of underground storage tank testing that can be performed. Rule R311-201-4
TRANSFORM YOUR COMPLIANCE DEPARTMENT FROM “NO” TO “GO”!
Tired of that feeling that you are holding up a product from going to market? First Consulting can help transform your Compliance from the “Department of No” to the “Department of Go!”
Click here to learn more.
MISCELLANEOUS
Pennsylvania amended its regulations to provide exemptions for internal audit function requirements. If an insurer was exempt from the internal audit function requirements and no longer qualifies for that exemption, the insurer has until December 31 of the year in which the annual statement was filed showing the exemption threshold to comply with the requirements. 31 s 147.8a
ORSA: OWN RISK AND SOLVENCY ASSESSMENT
Massachusetts enacted legislation that requires insurers or insurance groups to maintain a risk management framework and to conduct an own risk and solvency assessment annually. An insurer must submit to the DOI an ORSA summary report or combination of reports, as specified. Senate Bill 2517
Oregon adopted a new rule regarding submission of an ORSA (Own Risk and Solvency Assessment) summary report(s) comparable to the process described in the July 2014 edition of the NAIC ORSA Guidance Manual. 836-011-0030
PERSONAL LINES INSURANCE
Connecticut issued a bulletin regarding designation of a third party to receive notices of cancellation/non-renewal for homeowners and motor vehicle insurance policies. Bulletin PC-83
Nevada issued a bulletin to remind insurers that any mathematical model used in underwriting or rating of any personal line of property and/or casualty insurance, or other line of property and/or casualty insurance subject to rate regulation and must be filed for prior approval. The bulletin provides examples of underwriting rules and predictive models that must be filed. Bulletin 17-001
PROFESSIONAL LIABILITY INSURANCE
Ohio enacted legislation permitting a terminally ill patient to use an investigational drug, product or device (IDPD) if certain conditions have been met and the patient has signed a statement of informed consent. It also provides qualified immunity to a physician who recommends or treats an eligible patient with an IDPD and provides qualified immunity to any manufacturer for actions related to providing or distributing the IDPD. HB 290; 4731.97; 4729.89; 4731.22
"I WOULD LOVE TO DELEGATE THIS RESPONSIBILITY"
Have you ever had this thought when you are trying to stay current with legislation applicable to your block(s) of business? First Consulting can help! Click here to learn more.
PROPERTY INSURANCE
Texas adopted several changes pertaining to inspections for windstorm and hail insurance. 28 TAC s 5.4601 +
Texas amended provisions regarding the storage and sale of fireworks. 28 TAC §34.303
The Department of the Treasury issued a final rule as part of its implementation of changes to the Terrorism Risk Insurance Program required by the Terrorism Risk Insurance Program Reauthorization Act of 2015. 31 CFR 50.1 Dated 04-01-2016
SERVICE CONTRACTS / WARRANTY INSURANCE
New Mexico issued a bulletin regarding delivery requirements for service contracts. Bulletin 2016-027
SURPLUS LINES
Rhode Island published a guide for surplus line brokers and licensees regarding tax filings and payments. Notice 2016-09
TITLE INSURANCE / AGENTS
Ohio amended its rule establishing criteria for the annual independent review of title insurance agents' escrow, settlement, closing, and security deposit depository institution accounts, effective January 13, 2017. 3901-7-01
Puerto Rico issued a ruling letter regarding unclaimed funds of title insurers and general agents. CN-2016-210-AL
WORKERS' COMPENSATION
North Carolina amended requirements for electronic submission of documents for workers' compensation claim cases. 04 NCAC 10A .0108
Ohio amended the schedule of occupational disease to provide that a firefighter who is disabled as a result of cancer, under certain conditions, is presumed to have incurred cancer while performing duties as a firefighter under workers' compensation laws. SB 27; 4123.68
Oregon advised insurers, self-insured employers and employer groups, and service companies regarding submission requirements for excess insurance policies, annual financial statements, and claims processing service agreements. Notice of December 22, 2016 (B)
Oregon issued a notice to clarify the requirements for timely payment of temporary disability. Notice of December 29, 2016 (B)
Oregon issued a notice to Workers' Compensation insurers, self-insured employers, and service companies regarding changes in the Preferred Worker Program (PWP). Notice of December 22, 2016 (D)
Oregon published a notice regarding requirements for insurers and self-insured employers who have elected not to process and pay supplemental disability benefits. Notice of December 22, 2016 (A)
Oregon revised its bulletin regarding acceptable forms of security deposits for self-insured employers and self-insured employer groups. Bulletin 147 (Revised)
The Department of Labor published the 2017 annual adjustments for inflation to civil monetary penalties, effective January 13, 2017. The penalties apply to failure to file first report or injury and failure to report termination of payments, for example. 20 CFR 702.204, .236, .271
"I WOULD LOVE TO DELEGATE THIS RESPONSIBILITY"
Have you ever had this thought when you are trying to stay current with legislation applicable to your block(s) of business?
Reviewing legislation to determine if the new law is applicable to your specific open or closed block of business and determining what steps are necessary to ensure you stay in compliance is time consuming. First Consulting can help.
First Consulting’s Compliance Monitoring service will:
- Review and summarize legislation that apply to your business;
- Advise which products and business area(s) are impacted; and
- Provide summaries weekly and a report of all summaries monthly.
We will help you RAPidly move through the legislation!
Because we understand that your needs are unique, we customize the Monitoring Services specific to your company.
Wait no longer, delegate to First Consulting. Call us today to discuss how Compliance Monitoring will help keep your block of business current with new legislation in 2017.
Scott Sheffer
816.391.2742
Scott.Scheffer@FirstConsulting.com
or
Vickie Goodman
816.391.2735
Vickie.Goodman@FirstConsulting.com
TRANSFORM YOUR COMPLIANCE DEPARTMENT FROM “NO” TO “GO”!
Do your marketing partners consider your compliance area to be the “Department of No”? Tired of that feeling that you are holding up a product from going to market? First Consulting can help transform your Compliance from the “Department of No” to the “Department of Go!”
Whether you have a backlog of new products, or a new product that that requires additional expertise, contact me today to learn how First Consulting can help to improve your speed to market and allow you to become the Department of Go!
Sean Cox
816.391.2737
Sean.Cox@FirstConsulting.com