Property & Casualty News

January 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

New York amended insurance law in relation to licensing requirements for insurance agents. Individuals seeking to obtain a license may now use correspondence work, a course offered over the internet or a similar institution in place of classroom work.     AB 9527; Ins. Law s 2103

New York approved changes in relation to business entity license renewal dates. Every license issued to a business entity shall expire on June 30th of odd-numbered years. Every insurance broker's license shall also expire on June 30th of odd numbered years.     Ins. Laws s 2103 and 2104


AUTOMOBILE INSURANCE

The Louisiana Attorney General has issued an opinion regarding golf carts on public roads. Any golf cart that can exceed a speed of 25 miles per hour must comply with the laws applicable to passenger vehicles as it does not meet Louisiana's statutory definition of a golf cart. Any golf cart used on public roads must have liability insurance with the minimum limits required under R.S. 32:900(B).     Opinion No. 18-0110


BLOCKCHAIN

Rhode Island issued a bulletin regarding the use of distributed ledger or blockchain technology in insurance.     Bulletin 2018-17


CLAIMS / CLAIMS ISSUES

New York amended its insurance law requiring out-of-state insurance adjusters acting on behalf of authorized insurers to appraise in-state property damages arising from emergency situations employing established rates used by in-state insurance adjusters. Artificially deflating or otherwise lowering cost data used for adjusted claims, or using cost data that is not appropriate for the region of the state where the loss occurred will be considered an unfair claim settlement practice.     SB 2746; Ins. Law s 2108; Ins. Law s 2601

North Carolina released a notice regarding the identification of water damages in adjusting hurricane claims for water losses other than flood. In adjusting hurricane damage claims for homes within the 1968-1997 applicable residential code period, it is important that the inside of the walls be checked more carefully than newer construction to ensure that moisture hasn’t seeped into the walls that will eventually result in mold and interior wall rot.     11/30/18 Notice


COMMERCIAL LINES INSURANCE

Missouri enacted legislation that exempts certain commercial lines rules and rates, and the forms to which they are applied, from filing requirements. Also, policy forms are exempt from filing if the commercial policyholder's annual commercial premiums total at least $100,000 and the policyholder employs a full-time risk manager or has retained a licensed producer to negotiate on its behalf. Exempted policies must contain notice that the policy may include exempt rates or forms. The change was effective 1/1/2019.     SB 594, 379.321


COMPLAINTS

Maryland issued a bulletin announcing that it has begun using a new online complaint tracking system, the Enterprise Complaint Tracking System (ECTS). This allows two-way written communication and document transmission between the Administration and its licensees beginning 2/1/19.     Bulletin 18-25


DISASTER / CATASTROPHIC EVENT

Alabama extended Section III of the state of emergency proclamation related to Hurricane Michael through February 5, 2019.     Proclamation 12-14-18

Texas issued a disaster proclamation that renewed the disaster declaration for various counties due to catastrophic damage caused by Hurricane Harvey.     Disaster Proclamation dated 12-4-18


FEE SCHEDULES

California issued notification that fees for insurance producers, adjusters, and insurers will increase by 10% effective March 3, 2019.     Bulletin 2018-4


HOLDING COMPANIES

Connecticut has updated regulations relating to the Holding Company Act. Filings of Forms A and E must include an electronic copy. Forms B, C, D, D-1, and F will only need to be filed electronically. Additional revisions to make technical corrections are included.     38a-138-1


PROPERTY INSURANCE

Washington adopted rules for personal lines property insurers implementing and conducting risk reduction programs.     WAC 284-33-005 +


RATEMAKING

Louisiana adopted new rules setting forth the process for the filing and review of a consent to rate application for any property and casualty insurance policy written or issued for delivery in Louisiana, or for any risk located in Louisiana, in which the insurer seeks to obtain the approval of the commissioner to charge a rate in excess of the rate provided in a filing otherwise applicable. This consent to rate procedure does not apply to individually rated excess insurance coverages as specified in R.S. 22:1464.A(1).     LAC 37:XIII.15901


REINSURANCE

Connecticut issued a bulletin relating to requirements for reinsurers. Certificates of accreditation are renewed June 1, however, reporting requirements must be satisfied. Annual filings of financial condition are due March 1, with Annual Statement and actuarial opinion. Management discussion and analysis are due April 1. Unless instructed, quarterly statement filings are not required. Audit reports are due by June 1.     Bulletin FS-4AR-18


REPORTS - ANNUAL / QUARTERLY STATEMENT

Connecticut issued a bulletin that provides guidelines for annual and quarterly statement filings.     Bulletin FS-4-18

Florida amended rules to adopt updated professional standards of the American Institute of CPAs (AICPA) for annual audited financial reports. Changes are effective January 10, 2019.     FAC Rule 69O-137.002


REPORTS - DATA CALLS & OTHER REPORTS

New York adopted regulations providing specific instructions for completion of the annual compliance report data call regarding automobile insurance policies. Responses must be submitted by 4/30/19.     Section 3425(f) Compliance Report Data Call

North Carolina issued a bulletin to all insurers that write homeowners coverage in the state to inform them about annual homeowners reporting requirements. Each member company of the North Carolina Insurance Underwriting Association is required to report annually to the Commissioner information regarding residential property policy writings in beach and coastal areas no later than 2/1/19.     Bulletin 18-B-19

Texas issued a bulletin regarding a mandatory data call to all insurance companies licensed to write property and casualty insurance in the state. The data call relates to disallowed expenses and data must be submitted no later than 4/1/19.     Bulletin B-0020-18

Texas issued a mandatory data call for insurance companies licensed to write private passenger automobile, commercial automobile, homeowners multiple peril, workers' compensation, commercial fire and allied lines, residential fire and allied lines, commercial multiple peril, general liability, boiler and machinery, commercial crime, commercial glass, surety, inland marine, medical professional liability, or miscellaneous professional liability insurance in Texas. Responses to the data call must be made by 2/13/19.     Bulletin B-0018-18


SERFF FILINGS

Massachusetts issued a message via SERFF regarding various changes in filing requirements and updated forms and instructions. Requirements bearing an edition date of 01/19 are required to be used in all filings by 2/19/19.     SERFF Message dated 1/2/19


SURPLUS LINES

Arkansas issued a bulletin to entities required to report and pay premium taxes in the state. Surplus Lines entities now have the option to file and pay their premium tax via OPTins. The bulletin clarifies that, at this time, this is strictly an option for Surplus Lines Insurers and Arkansas will continue to accept filings and payments by mail.     Bulletin 11-2018


TITLE INSURANCE / AGENTS

Nevada issued a bulletin providing clarification about how the Division of Insurance interprets and enforces its rebate and inducement laws concerning Title Insurance.     Bulletin 18-007

Texas issued a bulletin to title insurance underwriting companies regarding the annual submission of data to the Department. Reponses to this data call must be provided no later than 3/15/19.     Bulletin B-0019-18


WORKERS' COMPENSATION

Arizona announced that on February 19, 2019, the Industrial Commission of Arizona will launch a new Claims System. Interested parties will have an "administrator account" that includes options for communication methods.     Notice dated December 20, 2018