Property & Casualty News
February 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!
AGENT / PRODUCER LICENSING AND APPOINTMENT
New Jersey Insurance Commissioner advises that temporary insurance producer licenses will no longer be issued since the PSI test centers allow an applicant to take the producer examination either in person or remotely. Temporary licenses that have been issued will continue in full force and effect until the applicant earns a regular license by passing the exam or the temporary license expires, which will be 180 days after the temporary license was issued, or 30 days after the end of the COVID-19 public emergency, whichever occurs first. Bulletin 21-02
AUTOMOBILE INSURANCE
Maryland Insurance Administration reminds all property and casualty insurers, insurance producers, and the Maryland Automobile Insurance Fund of special provisions due to COVID-19. As result of the Governor's Executive Order issued March 5, 2020 declaring a COVID-19 state of emergency, the Maryland Department of Transportation Motor Vehicle Administration is not suspending drivers' licenses due to license expirations. Therefore, while the emergency remains in effect, insurers must take necessary steps to ensure they do not cancel or non-renew a policy due to the expiration of an insured's driver's license. Maryland drivers will have 30 days to obtain license renewal after the emergency is lifted. Bulletin 21-03
Michigan's Director of Insurance issued a bulletin regarding the results of an annual calculation of the Qualified Health Coverage Deductible. The deductible amount is based on the percentage change in the Consumer Price Index. Michigan law allows individuals to make certain choices regarding their no-fault coverage. Qualified Health Coverage (QHC) is health or accident coverage that does not exclude or limit coverage for injuries related to motor vehicle accidents, and for which any annual deductible for the coverage is $6,000 or less per individual, or enrollment in Medicare Parts, A and B. Accordingly, the maximum deductible for determining whether health or accident coverage is QHC remains unchanged at $6,000 for the period July 1, 2021 through June 30, 2022. Bulletin 2021-05-INS
New Hampshire amended and renumbered its regulation on Private Passenger Automobile Insurance. This regulates automobile insurance in the voluntary market as well as the automobile reinsurance facility. It establishes the criteria for moving a policy into the voluntary market vs. the reinsurance facility. It also sets forth rating plans and practices, residency requirements, and the reinsurance facility plan of operations. Regulation Ins 1403.02
West Virginia Insurance Commissioner issued a bulletin regarding "Full Coverage" automobile insurance. Carriers and agents are strongly discouraged from using the term "full coverage" in advertising, sales material or when talking with policyholders or potential policyholders because it may be misleading. It may be considered an unfair and deceptive act to do so. The term "full coverage" has no exact or standard definition and may mean different things to different people. State law requires all registered motor vehicle owners to purchase certain minimum coverages. However, consumers are also able to purchase higher coverages levels that, in West Virginia, must also be offered by an insurer. Bulletin No. 2021-02
CLAIMS / CLAIMS ISSUES
New Mexico Superintendent of Insurance notified all insurance companies authorized to transact business in New Mexico that the interest rate used in the payment of late claims has changed. Any type of insurance that does not pay a claim within 45 days after required proof of loss has been furnished, must pay the amount due to the claimant plus interest at the rate of 1-1/2 times the prime lending rate as determined by the Superintendent, for New Mexico banks per year during the period the claim is unpaid. The old rate on unpaid claims was 7.125%, but as of February 1, 2021, the interest rate was changed to 4.875%. Bulletin 2021-001
CYBERSECURITY
New York Insurance Superintendent released a Circular Letter to Property and Casualty Insurers regarding practices they should employ to identify and manage cyber insurance risk. The Superintendent shares a Cyber Insurance Risk Framework and best practices that have emerged since the Department's engagement with industry and experts. Circular Letter 2021-2
DISASTER PREPAREDNESS
Missouri's Department of Commerce and Insurance asked all insurers covering real or personal property in Missouri to update their disaster contact information. The information requested is the primary regulatory contact, secondary regulatory contact and communications contact with names, titles, phone numbers, and email addresses. Insures are requested to submit the information on an Excel spreadsheet and email it to CompanyContacts@insurance.mo.gov. Bulletin 21-01
FILINGS: PROPERTY / CASUALTY
Louisiana issued a bulletin regarding filing procedures for compliance with the federal Terrorism Risk Insurance Program Reauthorization Act of 2019, recently extended to December 31, 2027. Insurers may be required to file disclosure notices, policy language and applicable rates. The Insurance Department is offering a voluntary speed-to-market initiative for revised terrorism products with detailed instructions. Bulletin 2021-01
Michigan published a bulletin regarding new requirements applicable to rate, rule and form filings for auto insurance. All companies must submit a form filing to be effective no later than July 2, 2021 notifying the policyholder of the 56 hour limitation that applies to certain attendant care benefits beginning July 2, 2021 under MCL 500.3157(10). Other requirements such as a new P&C Rate Checklist are included in the bulletin. Bulletin 2021-07-INS
LIABILITY INSURANCE
Illinois Insurance Department published its 2021 Dram Shop Liability limits and Liquor Liability Insurance limits. The comptroller is required each year to determine the liability limits for causes of action brought under the law according to the consumer price index for the preceding calendar year. The CPI-U increased 1.36% during the preceding year. The judgment amount for causes of action under the Liquor Control Act was also updated. Notice of Dram Shop Liability Limits dated January 20, 2021
MISCELLANEOUS
FinCEN has published answers to frequently asked questions regarding suspicious activity reporting and other anti-money laundering considerations. FinCEN Notice dated January 19, 2021
Ohio SB 276 amended portions of the Captive Insurance Company law to define parameters around a Protected Cell. A protected cell insures or reinsures the risks of separate participants through a participant contract and segregates each participant's liability into a protected cell. The bill also revised the Limited Liability Company Act. Revisions apply to operating agreement requirements, fiduciary duties, and liability of members, among others. SB 276; 3964.17; 1706.26
Texas adopted a new regulation section, 28 TAC s 7.508, regarding biographical affidavit requirements for foreign insurance companies seeking admission to do business in Texas. Foreign insurers currently submit the biographical affidavit form adopted in 28 TAC s. 7.507, for each officer and director on admission to Texas and any time there is a change in officer or director. The TDI's review is duplicative since foreign insurers' domiciliary regulators evaluate and monitor officers and directors and any changes to them. 28 TAC s 7.508
REGULATORY REPORTING REQUIREMENTS
New Hampshire issued a bulletin to all domestic and foreign companies setting forth Title 37 Financial Regulation Filing Requirements from March 1 through November 15, 2021 during the COVID-19 Pandemic. This handy reference gives due dates and information on filing all types of financial reports including those pertaining to holding companies and cybersecurity. Bulletin INS 21-007-AB
REPORTS - ANNUAL / QUARTERLY STATEMENT
California notified all admitted insurers and surplus line brokers of important 2020 Tax Return Information. The tax filing dates for surplus lines brokers, insurers and Ocean Marine are disclosed. During the COVID-19 emergency the return may be filed electronically via email. The required paper original filing is due within 90 days of the lifting of the "shelter-in-place" order in California. Other filing information is included. Notice dated January 15, 2021
SURPLUS LINES
Alaska issued a bulletin to surplus line insurers, insurance producers and surplus lines brokers publishing the list of eligible surplus lines insurers (white list) in Alaska. Bulletin B 21-03
West Virginia declares certain insurance coverages to be generally unavailable in the authorized market at the present time and thus exportable. The Insurance Commissioner adopts the West Virginia Surplus Export List effective January 28, 2021. Notice of January 28, 2021, WV Surplus Lines Export List
TRANSPORTATION NETWORK
California Department of Insurance issued a notice regarding implementation of insurance provisions of Proposition 22 requiring transportation network and delivery network companies to make available to app-based drivers occupational accidental medical expense coverage, occupational disability income coverage and accidental death coverage. Notice dated February 3, 2021
WORKERS' COMPENSATION
Kentucky Workers' Compensation Funding Commission reminds insurers providing workers' compensation insurance that the required Annual Audit and Collections Report for calendar year 2020 must be submitted no later than April 30, 2021. Even if a carrier did not write, receive or return workers' comp premium during 2020, they must file a Non-Writer Statement (Form KWCFC-04). WC Notice dated January 11, 2021
Louisiana Office of Workers' Compensation Administration announced the mileage reimbursement is $.56 per mile for 2021. WC Notice of January 14, 2021
Michigan reminds members of the Compensation Advisory Organization of Michigan (CAOM) that call data for the 2021 reporting year will be collected through CAOM. All data providers must submit their calls electronically using the Michigan Financial Data Reporting Application (MIFDRA) available on the CAOM website. CAOM assesses a financial penalty for late submission of financial calls. The financial reporting schedule for the year is set forth, and the data is valued as of December 31, 2020. Reporting requirements include instructions for premium collected to provide coverage under the terrorism risk insurance acts (TRIA and TRIPRA). WC Circular Letter #323
Mississippi publishes the worker's compensation mileage rate and weekly maximum and lifetime disability rates for 2021. The mileage rate is $.56 per mile. The weekly maximum is $523.16 and the lifetime disability rate is $235,422. WC Notice dated February 5, 2021
South Carolina Insurance Department announced the approval of loss costs for the National Council on Compensation Insurance (NCCI) on January 26, 2021 with an effective date of April 1, 2021. Consequently, all workers' compensation insurers are required to submit a SERFF filing to adopt these loss costs no later than March 27, 2021 with an effective date no later than July 30, 2021. WC Notice dated January 27, 2021
Vermont Department of Labor published the workers' compensation mileage reimbursement rates and expense reimbursement rates for 2021. Workers Compensation Notice January 1, 2021
West Virginia Insurance Department releases a bulletin regarding Workers' Compensation Claims for COVID-19. The bulletin states an employee has the absolute right to file a claim for workers' compensation benefits due to COVID-19. The claim will be investigated as to whether the injury occurred in the course of and resulting from the employee's covered employment. Employers and healthcare providers must cooperate in claim investigations. More importantly, employers cannot advise employees that they cannot file workers' compensation claims for COVID-19 or retaliate or discriminate against employees who do file claims. Bulletin No. 2021-01