Property & Casualty News
February 2024
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!
AUTOMOBILE INSURANCE
Michigan's Department of Insurance and Financial Services, Office of General Counsel, published a bulletin regarding payment and billing guidance for No-Fault Automobile insurers and health care providers. Bulletin 2024-06-INS
Virginia's Automobile Insurance Plan manual of rules and rates has been revised by approving the submission made by the Automobile Insurance Plans Service. The amendments apply to new and renewal policies effective on and after May 1, 2024. Administrative Order 12179
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE
Georgia issued a bulletin reminding carriers of the requirements and prohibitions concerning non-renewals. Insurers nonrenewing a policy must provide written notice, mailed or personally delivered, at least 30 days prior to the effective date of nonrenewal. 60 days after the effective date of the policy/renewal date, an insurer can only cancel for non-payment of premium, discovery of fraud, substantially increased hazard or violation of the material terms of the policy. Any notice of a reduction in coverage must be in a separate document and include a title in all capital letters of at least 12-point type. Bulletin 24-EX-2
CLAIMS / CLAIMS ISSUES
Colorado issued a bulletin providing guidance to insurers issuing homeowner policies in the state. The bulletin addresses the handling of claims as a result of the Marshall and Middle Fork Fires. Insurers are asked to toll or temporarily suspend time limits applicable to claims. Companies should have a process in place no later than 02/16/24. Failure to provide reasonable accommodation may be viewed as non-compliant with good faith practices. B-5.48
Florida removed obsolete language from a regulation, penalizing insurers who regularly fail to appear at mediation conferences. 69O-166.031
Montana's Commissioner of Securities and Insurance issued an Advisory Memorandum providing claims settlement guidance to insurers with regard to providing advanced payment (prior to final settlement) to a victim of an automobile accident for any damages for which liability is reasonably clear, including medical expense, lost wages and costs of acquiring medical records. Advisory Memorandum dated January 26, 2024
CYBERSECURITY
New York's Department of Financial Services notified Chief Information Security Officers of regulated institutions of the dangers in allowing users to reset passwords themselves. The Department recommends multifactor authentication to increase security. Letter dated January 12, 2024
DEPARTMENT OF INSURANCE
Arkansas adopted new rules establishing formal and informal procedures governing the activities of the insurance department. Rule 125
DISASTER PREPAREDNESS
New York passed a law spelling out standards for prompt investigation and settlement of claims for loss of or damage to real property, personal property and other liabilities when the Governor declares a disaster emergency or when the President issues a major disaster or emergency declaration. AB 2078; Ins. Law s 2618
ELECTRONIC TRANSACTIONS
South Carolina passed a law allowing standard property and casualty policies or endorsements that do not contain personally identifiable information to be posted on the insurer's website. Compliance requirements are provided. HB 3977; 38-55-730
HOLDING COMPANIES
Massachusetts amended rules to implement recent changes to the Massachusetts Insurance Holding Company System. 211 CMR 7.02
MISCELLANEOUS PROPERTY / CASUALTY
New Mexico's Superintendent of Insurance issued an emergency rule that applies to all property and casualty insurers dealing with notification requirements for discontinuing insurance products. All P&C carriers are to provide at least 30 days’ notice to the Superintendent prior to the effective date of discontinuance. Emergency 13.8.7.1 NMAC
PROPERTY INSURANCE
California published its annual notice of significant laws pertaining to residential property insurance policies. Topics include claims and coverage, valuation and appraisals and wildfire risks. Notice Dated January 5, 2024
Illinois amended its Home Property Insurance statute to prohibit an insurer from refusing to issue or renew, cancel, charge, or impose an increased premium based solely on owning any dog of a specific breed or mix of breeds. Insurers may consider whether an individual dog is dangerous or vicious under the Animal Control Act. HB 1049
REGULATORY REPORTING REQUIREMENTS
Federal Financial Crimes Enforcement Network (FinCEN) issued an alert to financial institutions related to the financing of Israeli extremist settler violence against Palestinians in the West Bank. This alert provides select red flags to assist in identifying and reporting suspicious activity that finances such violence. FIN-2024-Alert001 February 1, 2024
Utah's Insurance Commissioner reminds insurers that issue policies with motor vehicle liability coverage, uninsured motorist coverage, underinsured motorist coverage or personal injury coverage they must regularly report those policies to Insure-Rite. Bulletin 2024-1
REPORTS - DATA CALLS & OTHER REPORTS
Maryland published a bulletin notifying all insurers, and similar organizations, of the requirement to provide certain contact information by 04/15/24. Information must be submitted electronically and include contact information in the event of a disaster or catastrophic event. Instructions on reporting are included in the bulletin. Bulletin 24-2
North Carolina's Insurance Department notified insurers of the semi-annual Data Call that applies to companies that issued Consent to Rate policies during the period 07/01/23 - 12/31/23 covering loss to nonfleet private passenger motor vehicle physical damage and homeowners’ residential property with not more than four housing units. The data must be submitted by March 15, 2024. Bulletin 24-B-02
SURPLUS LINES
Connecticut issued a bulletin notifying insurers of the requirement for foreign eligible surplus lines insurer to file financial statements. Companies are further reminded of the disclosure required on the cover of each policy, notifying the insured that it is a surplus lines policy. Bulletin FS-4SL-23
TITLE INSURANCE / AGENTS
Rhode Island released a summary of annual and quarterly filing requirements for domestic and foreign title insurance companies. Please note that the state's instructions for companies to file with the NAIC are included in a checklist. The NAIC will not be sending their own checklist this year. Special Reporting Requirements 2024
TRADE PRACTICES
Alaska reminded insurers of their duty to comply with all applicable laws or regulations when its use of artificial intelligence (AI) impacts consumers of the state. Laws involving use of AI include the unfair trade practices act and the unfair claims settlement practices act. The bulletin reiterates the risks the department sees in the use of AI and notifies insurers of the requirement to establish an AI Systems Program to provide oversight. The department will be performing inquiries and examination to ensure compliance. Bulletin B 24-01
District of Columbia amended the "Protecting Consumers from Unjust Debt Collection Practices Technical Clarification Emergency Act of 2024." The Act prohibits any creditor or debt collector from harassing any person in an attempt to collect a debt including by visiting his or her household or by publicizing the debt. B-662
WORKERS' COMPENSATION
Alabama announced the 2024 mileage reimbursement rates for workers compensation recipients. WC Notice of Mileage
Kansas issued an informational notice explaining the manner in which private reimbursement mileage rates will be set and announcing the state rates established as of 01/01/24. Informational Circular 24-A-006
Louisiana published notice that it has approved the annual loss cost filing of NCCI for a 9% reduction in workers compensation rates, effective 5-2024. Workers’ Compensation rates have fallen consistently at a rate of -66% over the past 20 years. Notice Dated 12-28-2023
Maryland's Insurance Commissioner issued a bulletin clarifying that in Apprenticeship Programs the age of the worker does not impact Workers Compensation Rates. Bulletin 24-3
Nevada Division of Industrial Relations, Workers Compensation Section notified insurers, Third-Party Administrators and Health Care Providers of a change in the 2024 Medical Fee Schedule due to the reported annual CPI for Medical Care. 2024 Nevada Medical Fee Schedule CPI Change
New Hampshire's Department of Labor increased the standard mileage reimbursement rate for eligible Workers' Compensation travel expenses to 67 cents per mile. The new rate applies to expenses incurred on and after January 1, 2024. DOL Notice dated January 2024
Pennsylvania's Insurance Department announced it is conducting its annual Workers' Compensation Special Schedule "W" data call. The information is due before April 15, 2024. 2023 Special Schedule "W" Letter - Notice dated February 6, 2024
Wisconsin's Department of Workforce Development issued its 2023 Workers' Compensation Supplemental Benefit Reimbursement Assessment. Insurance carriers are requested to pay the assessment invoice immediately and unpaid balances after 30 days will accrue interest. Insurance Letter 542