Property & Casualty News
February 2019
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
Utah adopted a new regulation that creates a process allowing prospective licensees with certain felony convictions to petition the Commissioner for written consent to participate in the business of insurance. Rule R590-278
AUTOMOBILE INSURANCE
California issued regulation that will eliminate the gender of a driver as a private passenger automobile insurance rating factor. Revised class plans must be filed by July 1, 2019. T. 10 s 2632.5
Delaware has withdrawn Auto Bulletin 29, which eliminated the requirement for brokers/agents to fill out new Regulation 603 Form A. Auto Bulletin 29
Kentucky has extended the emergency measure related to motor vehicle interlock devices (IIDs) until July 7, 2019. The measure amends fee provisions, as well as clarifies IID provider certification and requirements for installation. Emergency 601 KAR 2:030
CAPTIVES
Hawaii issued a memorandum providing guidance on 2018 annual filing requirements for captive insurers. Instructions, penalties for late filings, and a list of filing deadlines are also included. Memorandum 2018-6C
Texas amended its regulation regarding captive insurance making several changes and adding a new section. 28 TAC s 6.1, 6.2, 6.202, 6.203, 6.302, 6.303, 6.401, 6.409, 6.411
COMPLAINTS
Georgia issued a notice advising insurers to use the Georgia Company Portal for transmission of responses to consumer complaints. Directive 19-EX-1
CORPORATE GOVERNANCE
Michigan enacted legislation concerning the corporate governance annual disclosure (CGAD). The implementation date is January 1, 2020 and companies need to file the first report before June 1, 2020 and by each June 1 thereafter. HB 6520; 500.175; 500.1755; 500.1757; 500.1759; 500.1761; 500.1763; 500.1765; 500.1767; 500.3032
CYBERSECURITY
New York issued a press release reminding covered entities that they must be in full compliance with the Cybersecurity Regulation by 3/1/19. The press release notes that a copy of the cybersecurity regulation and a set of frequently asked questions can be found on the DFS cybersecurity portal: ttps://myportal.dfs.ny.gov/web/cybersecurity/. Press Release dated 1/31/19
DISASTER / CATASTROPHIC EVENT
North Carolina issued an executive order that terminates the transportation waivers in Executive Order Nos. 52, 55, and 59, due to the impact from Hurricane Florence. This is effective 1/23/19. Executive Order No. 89
Puerto Rico issued a ruling implementing a voluntary, expedited mediation process for the resolution of claims related to Hurricanes Irma and Maria. Ruling CN-2019-245-D
Rhode Island issued a bulletin declaring a State of Emergency for Newport County due to lost gas service. The bulletin offers guidance on claims handling activity related to the gas outages. Bulletin 2019-1
DISASTER PREPAREDNESS
Maryland issued a bulletin requesting all insurers update contact information for use in the event of a disaster or catastrophic event by April 15, 2019. The information can be submitted electronically. Bulletin 19-02
Minnesota has issued a bulletin requiring property/casualty insurers to provide certain data to the DOI. The data is related to disaster planning, preparedness, and response. Due dates are provided in the bulletin as they vary based on the specific survey and type of insurance the carrier writes. Bulletin 2019-1
HOLDING COMPANIES
Illinois amended its regulation relating to holding companies. Changes are made concerning required information, prior notification of certain transactions, forms, and penalties. 50 Ill. Adm. Code 654.10
LIABILITY INSURANCE
Kentucky has amended liability insurance requirements relating to the manufacture and sale of recreational vehicles. 815 KAR 25:020
MISCELLANEOUS
Alabama issued a bulletin that advises insurers to be supportive of policyholders adversely affected by the government shutdown. The DOI is supportive of insurers allowing payment extensions or payment plans. Bulletin dated 1/25/19
Alaska issued a notice in response to the federal government shutdown urging insurers to work with furloughed federal employees and affected contractors by providing flexibility on the timing of premium payments. Notice dated 1/25/19
California issued a press release related to the federal shutdown urging insurers to relax due dates for premium payments, extend grace periods, waive late fees and penalties, allow forbearance with regard to the cancellation/non-renewal of policies, allow payment plans for premium payments, and exercise judicious efforts to assist affected policyholders and work with them to make sure that their insurance policies do not lapse. Press Release dated 1/18/19
Colorado issued a news release regarding the federal shutdown urging insurance companies to work with furloughed federal employees, as well as federal contractors and their workers, by providing assistance and flexibility, especially concerning missed premium payments and possible cancellation of policies. News Release dated 1/25/19
Delaware issued a bulletin relating to the federal government shutdown and non-renewals of policies due to failure of premium payment. Insurers are encouraged to assist policyholders adversely affected by the shutdown, in the form of payment plans or payment extensions. Universally Applicable Bulletin 4
District of Columbia issued a bulletin regarding the financial hardship resulting from the partial shutdown of the federal government. It encourages consistent, prudent insurance practices, relaxing due dates for premium payments, extending grace periods, waiving late fees and penalties, allowing forbearance with regard to the cancellation/non-renewal of policies, allowing payment plans for premium payments, and exercising judicious efforts to assist affected policyholders and work with them to make sure that their insurance policies do not lapse. Bulletin 19-IB-1-1/24
Georgia released a directive encouraging insurers to exercise leniency where premium payments of federal employees or contractors are late. Insurers are urged to reasonably accommodate those policyholders by providing payment plans or extensions for premium payments. Directive 19-EX-3
Louisiana issued a bulletin in response to the federal government shutdown. It strongly encourages insurers to exercise leniency where premium payments are late. Insurers are urged to reasonably accommodate those policyholders by providing payment plans or extensions of time for premium payments. Bulletin 2019-01
Mississippi issued a bulletin to insurance companies regarding policyholders affected by the federal government shutdown that began 2-22-18. It strongly encourages all insurance carriers in this state to work with affected policyholders before issuing a cancellation or non-renewal of policies due to the non-payment of premiums. Bulletin 2019-1
Missouri issued a bulletin to provide guidance and information to insurers regarding the treatment of Missouri residents negatively impacted by the federal shutdown. It encourages insurers and other related entities to be consistent with prudent insurance practices, relax premium due dates, extend grace periods, waive late fees and penalties, allow forbearance regarding the cancellation/non-renewal of policies, allow payment plans for premium payments, and exercise judicious efforts to assist affected policyholders and work with them to make sure that their insurance policies do not lapse. Bulletin 19-01
New Jersey issued a bulletin in response to the shutdown of the federal government. It encourages all persons or entities subject to licensure or regulation to relax due dates for premium payments, extend grace periods, waive late fees and penalties, allow forbearance with regard to the cancellation/non-renewal of policies, allow payment plans for premium payments, and exercise efforts to assist affected policyholders and work with them to make sure that their insurance policies do not lapse. Bulletin No. 19-01
New Mexico issued a bulletin in response to the federal government shutdown. The Superintendent of Insurance encourages all insurance companies to refrain from cancelling or non-renewing policies issued to affected policyholders due to the non-payment of premiums. This applies to commercial and personal, property, casualty, automobile, accident and health, and life policies. Bulletin 2019-002
Oklahoma issued a bulletin to insurance companies regarding policyholders affected by the federal government shutdown. It encourages all insurance companies to refrain from cancelling or non-renewing such policies due to the non-payment of premiums. Bulletin No. EX 2019-01
Texas amended its regulation relating to the 2019 assessment of maintenance taxes and fees imposed on gross premiums. 28 TAC s 1.414
REPORTS - DATA CALLS & OTHER REPORTS
North Carolina issued a circular letter regarding the annual collection of statutory Property and Casualty Annual Statement and Insurance Expense Exhibits. The letter includes a Data Call Package with a call reporting schedule, contact form, guidebook, and an explanation of late submission fines. Circular Letter G-19-1
RISK RETENTION GROUPS
Nevada issued a bulletin amending Bulletin 14-008. It is now required that risk retention groups file and receive prior approval from the Division for regulated rates via SERFF. It also gives risk retention groups a choice between filing on a Generally Accepted Accounting Principles basis or on a Statutory Accounting Principle basis. Bulletin 19-001
SERFF FILINGS
Georgia has issued a requirement that all insurers writing Private Passenger Auto and Homeowners insurance use the rate comparison portal to enter their rates once the filing has been finalized. SERFF will implement a certification process to attest that it has been completed, and noncompliance will be subject to administrative action. Directive 19-EX-2
Georgia issued a message effective 1/15/19 stating that all SERFF filings submitted in Georgia will be available for public viewing immediately upon submission to the state for review. Any filing material deemed proprietary and confidential should be marked as such and the Trade Secret Protection Form should be attached to Item K.1. in the Supporting Documentation tab. SERFF message dated 1/16/19
New Hampshire issued a message via SERFF that due to staffing issues, some rate filings will be referred to a consulting actuary for review to maintain reasonable review time for all filings. The expense incurred for the reviews shall be borne by the filing entity. SERFF message dated 1/7/19
Vermont issued a message via SERFF stating that as of 1/30/19, all carriers submitting private passenger auto rate filings will be required to complete and sign the Personal Auto Rates Compliance Certification Form, which has been added as a supporting document in SERFF to any and all future private passenger auto rate filings. Any filing that was started prior to this date will still be required to complete and submit this form. SERFF message dated 1/30/19
SURPLUS LINES
Alaska issued a bulletin that includes the white list of eligible surplus lines insurers. Bulletin B 19-01
TITLE INSURANCE / AGENTS
New York issued a circular letter to title insurance corporations and title insurance agents regarding the upholding of the ban on inducements for future title insurance business. The circular letter also notes that expense reporting and rate filing rules are upheld. Supplement No. 2 to Insurance Circular Letter No. 1 (2003)
WORKERS' COMPENSATION
Alaska amended a bulletin clarifying that claims for Second Injury Fund (SIF) reimbursement may not be submitted for incidents that occur after August 31, 2018, and all claims must be submitted before October 1, 2020. Bulletin WC 18-04 (Amended)
Kentucky issued notice regarding the Annual Audit and Collections Data Reporting Instructions for Calendar Year 2018 for companies providing Workers' Compensation. The submission is due by April 30, 2019, and the notice includes a list of required data and instructions for required electronic submission. Notice dated January 22, 2019