Property & Casualty News
January 2018
Welcome to our latest newsletter! As a thought leader in the Insurance Industry for over 48 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
Hawaii issued a memorandum regarding reimbursements for licensing examinations taken by veterans. Veterans who take a Hawaii licensing insurance exam required by the Insurance Division can be reimbursed for the cost of the exam by the U.S. Department of Veteran Affairs (VA). Memorandum 2017-11LIC
New Jersey issued a bulletin to remind insurers about producer appointment and renewal procedures. Renewals are due by May 1 annually and must be completed on the NIPR website. Bulletin 17-11
AGENT / PRODUCER TERMINATION
Utah revised its rules pertaining to appointments and termination of appointments by insurers. Utah now requires an insurer to notify an individual or agency licensee of a terminated appointment and of the reason for termination within 15 days after submitting a termination of appointment to the Department. If a licensee is terminated for cause, the insurer shall provide a copy of the information sent to the Department to the licensee. Rule R590-244-11
AUTOMOBILE INSURANCE
New Jersey issued a bulletin to provide instruction regarding the level of personal injury protection (PIP) required for autocycles. Owners of autocycles must maintain full PIP coverage, not pedestrian PIP. The bulletin clarifies that providing coverage through a motorcycle policy does not provide full PIP coverage. Bulletin No. 17-12
CAPTIVES
Delaware issued a bulletin regarding accounting standards for captive insurance companies. Captive Insurance Bulletin 8
Delaware published a notice providing captive insurers with application process tips and reminders. 2017 application process tips and reminders - Notice of 11-16-17
CLAIMS / CLAIMS ISSUES
Massachusetts issued a bulletin to address the coordination of benefits for accident-related medical claims between fully-insured health policies and the Personal Injury Protection ("PIP") and Medical Payments (“MedPay”) benefits of motor vehicle liability policies. BULLETIN 2017-06
Michigan issued a memorandum to clarify that when coverage is not in dispute, the issue of "actual cash value or amount of the loss" can be determined via the appraisal process described in Section 2833(1)(m), and that when a party demands an appraisal in accordance with this Section, an insurer's participation in the appraisal process is mandatory. Memorandum dated December 20, 2017
TIRED OF CHECKING STATE LEGISLATIVE UPDATES?
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COMPLAINTS
Delaware issued a bulletin directing all insurance companies to require each of their employees who correspond with the Department about the investigation of consumer complaints to include both the employee's direct dial telephone number and the employee's direct email address in that correspondence. Domestic/Foreign Insurers Bulletin No. 98
CONFIDENTIALITY / PRIVACY
Delaware published a bulletin to clarify that an annual privacy notice is not required under certain circumstances. Domestic/Foreign Insurers Bulletin No. 97
Kansas issued a notice to set forth the views of the Kansas Insurance Department regarding recent amendments to the federal Gramm-Leach-Bliley Act (GLBA) and clarify when the annual privacy notice is not required to be provided. Notice dated 09-22-17
Wisconsin extended the expiration date of an emergency rule regarding annual privacy notice requirements. The emergency rule adds circumstances under which the annual privacy notice is not required. Ins 25.13
DISASTER / CATASTROPHIC EVENT
California distributed a notice regarding recent wildfires which asks all property insurance companies to follow the lead of other insurers who are providing up to 100% of Contents (Personal Property) limits without requiring the insured to undertake the onerous task of completing a detailed inventory. Notice dated December 21, 2017
California issued a notice regarding expedited claim handling billing grace period procedures for the wildfires in Southern California. Notice dated December 8, 2017 (B)
California issued a notice to alert insurers that moratoriums of any duration on the offer to write Private Passenger Automobile policies for Statutory Good Drivers, and/or restrictions on adding or amending coverage to such policies, are prohibited. The notice was issued because the Department learned that some insurers are imposing a moratorium on writing new business or adjusting coverage on existing policies when a catastrophic event or natural disaster is underway. Notice dated December 8, 2017
Florida amended its rule pertaining to the reimbursement contract for the Florida Hurricane Catastrophe Fund. Reference to the reimbursement contract for the 2018-2019 contract year is added. FAC Rule 19-8.010
Virgin Islands issued an amended emergency order regarding procedures for settlement of property damage claims due to Hurricane Irma and Hurricane Maria. Order 2017-04
FILINGS: PROPERTY / CASUALTY
Nebraska published a chart containing dwelling fire form and rate filing requirements. Notice of December 7, 2017 (2)
Utah amended provisions regarding form and rate filing requirements for property and casualty insurance. The rule specifies that an actuary must certify that private passenger auto, homeowners, and workers' compensation rates are not excessive, inadequate, or unfairly discriminatory. Rule R590-225
FINANCIAL REGULATION
Nevada added a new regulation specifying certain fees insurers are required to pay based on direct written premiums. NAC 680C
HOLDING COMPANIES
Arizona amended its holding company regulation pertaining to extraordinary dividends and other distributions by removing the word “investment” from the term "net investment income". R20-6-1409
Illinois added a rule providing that enterprise risk reports are to be filed on or before May 1 of each year. 50 Ill. Adm. Code 652.50
LIABILITY INSURANCE
Colorado amended its rule regarding motorcycle rules and regulations for rider skills testers and testing organizations. Provisions regarding insurance were revised. 1 CCR 204-30 Rule 9
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MISCELLANEOUS
Michigan issued an emergency rule regarding implementation of the Medical Marihuana Facilities Licensing Act. The Act provides liability and casualty insurance requirements. Emergency Rule 1
PORTABLE ELECTRONICS INSURANCE
Connecticut issued a notice regarding portable electronics insurance license renewals. Renewal applications were emailed to all active licensees the last week in November and licensees are required to submit the $450 renewal fee postmarked by the January 31, 2018 expiration date. There is no grace period, but reinstatement is addressed in the notice. Notice dated November 30, 2017 (2)
PROPERTY INSURANCE
Maryland issued an opinion related to the insurance provisions of the Reduction of Lead Risk in Housing Act. The opinion concludes that insurers are no longer required to offer coverage to property owners for qualified offers under Ins. S 19-704. Attorney General Opinion dated December 4, 2017
REINSURANCE
Connecticut issued a bulletin to accredited reinsurers providing 2017 and 2018 financial filing requirements. Bulletin FS-4AR-17
Wisconsin amended its law regarding reinsurance to clarify circumstances under which a domestic insurer may take credit for ceded reinsurance. The law also provides requirements an assuming insurer must meet to be eligible for certification. Ins 52.02+
REPORTS - ANNUAL / QUARTERLY STATEMENT
Connecticut issued a bulletin reminding insurers to annually submit to the commissioner and the NAIC, before the first day of March, a report, prepared in accordance with the NAIC Annual Statement Instructions Handbook and to follow those accounting procedures and practices prescribed by the NAIC Accounting Practices and Procedures Manual. Insurers must also report their financial condition on a quarterly basis during 2018. Bulletin FS-4-17
New York added forms and instructions to their website to be used for filing 2017 Annual Statements. NY Department of Financial Services Website, Insurance Industry tab
Oregon adopted rule changes to provide the annual statement blank versions to be used for submission of 2017 annual statement and 2018 quarterly statements. Rule 836-011-0000
SERVICE CONTRACTS / WARRANTY INSURANCE
New Mexico issued a bulletin regarding reimbursement insurance policy language requirements and notifications to be provided to service contract holders advising them about what to do if the service contract provider does not perform its duties. Bulletin 2017-016
SURPLUS LINES
California issued a bulletin regarding the 2018 export list. Bulletin 2017-2
Maryland issued a bulletin regarding taxation of surplus lines broker fees. Bulletin 17-18
Montana issued a memorandum regarding surplus lines fees for personal and commercial surplus lines policies. Advisory Memorandum of December 18, 2017
WORKERS' COMPENSATION
New York added new section 5(b) concerning conditional renewal to Work. Comp. s 54. The provision requires that notice of certain premium increases greater than 10% must be provided at least 30 days in advance of the expiration date of the policy. AB 1620
Vermont published a bulletin to provide guidance about performing workers' compensation audits regarding the statutory employee exception following the Department of Labor's decision in Griffin Koski v. Black Rock Construction LLC, Opinion No. 25-15 WC. Insurance Bulletin No. 197
2018 POLICY FORM CHANGES
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Joe Bieniek
816.512.2832
Joe.Bieniek@FirstConsulting.com
HAPPY NEW YEAR – CREATE A NEW YEAR’S RESOLUTION
I am sure you, like many others, have made a personal New Year’s resolution. Have you made a business New Year’s resolution? It’s not only a good idea to have a business New Year’s resolution but it’s not too late to get started.
Staying current with new regulatory rules and laws is often mentioned as one of the more difficult and time consuming responsibilities, and might be a resolution you are considering for your company.
First Consulting can help with our Compliance Monitoring service. There are two different levels so you can you choose the one that is right for your company.
• Level One –
- Review and summarize legislation that apply to your business; and
- Advise which products and business area(s) are impacted.
• Level Two –
- All of Level One; and
- Provide a list of action items required to maintain compliance. (For example, you may need to draft and file an endorsement, send endorsement to insureds and update procedures, etc….)
• Each level will provide summaries on a weekly, bi-monthly or monthly basis.
Contact me today to learn more on how we can help.
Vickie Goodman
816.391.2735
Vickie.Goodman@FirstConsulting.com