Property & Casualty News
January 2021
Welcome to our latest newsletter! As a thought leader in the Insurance Industry for over 51 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's Department of Insurance updated the rules governing individual and agency licensing requirements to add a requirement that insurers and agencies report terminations to the department, in addition to other requirements. Rule R590-244-1
CLAIMS / CLAIMS ISSUES
Louisiana issued a bulletin providing notification and guidance of the statutory requirements relating to the timely payment of claims to both first party insureds as well as third party claimants. Bulletin 2020-07
New Mexico's Commissioner informed all carriers that claims which are not paid within 45 days after proof of loss has been furnished, must pay interest on the amount due and unpaid at the rate of 1-1/2 times the prime lending rate. The prime lending rate is changing on February 1, 2021 to 4.875%. Bulletin 2021-001
DISASTER / CATASTROPHIC EVENT
Texas's Governor renewed the COVID-19 disaster declaration. Disaster Proclamation Dated 1-5-2021
Texas's Governor renewed the Hurricane Harvey disaster declaration for certain specified counties. Disaster Proclamation Dated 1-5-2021
PERSONAL LINES INSURANCE
California enacted legislation concerning homeowners' insurance for disaster survivors and requiring more transparency when a new policy is sold that does not cover losses from fire. AB 2756, SB 872
Wyoming’s Insurance Commissioner provided guidance on adjustment of motor vehicle or trailer damage claims. This bulletin specifically focuses on the practice of balance billing consumers when they elect to use a repair shop chosen by the consumer rather than a repair facility that is contracted with the insurer. Bulletin 01-2021
REGULATORY REPORTING REQUIREMENTS
Connecticut issued bulletins regarding the financial reporting requirements for reinsurers and surplus lines carriers. Bulletins FS-4AR-20 and FS 4SL-20
REINSURANCE
California enacted legislation which incorporates the NAIC’s revised Credit for Reinsurance Model Regulation into state law, thus preventing federal preemption of existing state law regarding credit for reinsurance and retaining the state’s accreditation by the NAIC. AB 2049
Michigan enacted legislation which requires reciprocal jurisdiction in reinsurance effective March 24, 2021. SB-1015
REPORTS - DATA CALLS & OTHER REPORTS
Texas issued a Disallowed Expense Data Call for calendar year 2019 experience. The data must be returned no later than April 1, 2021 for fire, allied lines, private crop, farm owners, multiple peril, homeowners multiple peril, commercial multiple peril, inland marine, medical malpractice, other general liability, products liability, private passenger automobile, commercial automobile, fidelity and surety. Bulletin B-0001-21
THIRD PARTY ADMINISTRATORS
Texas issued a data call for third party administrators acting as pharmacy benefit managers and health benefit plan issuers. This covers data from 2020 and must be submitted before February 1, 2021. Bulletin B-0002-21
TITLE INSURANCE / AGENTS
Missouri issued a bulletin which renews the waiver of a requirement for title insurers to conduct on-site reviews of title insurance agencies. The waiver expires March 31, 2021 unless otherwise extended. Bulletin 20-20
WORKERS' COMPENSATION
Alaska issued a bulletin outlining the filing requirements for annual reports under AS 23.30.155 & 8 AAC 45.136; paying Second Injury Fund (SIF) contributions under AS 23.30.040; and paying Workers' Safety and Compensation Administration Account (WSCAA) fees under AS 23.05.067 for self-insured employers. Bulletin WC 20-10
Kansas issued an informational circular regarding the workers' compensation milage rate for 2021. Circular No. 21-A-008
New York's Workers' Compensation Board informed carriers that the New York State Department of Health provided updated reimbursement rates for acute per case inpatient rates, exempt hospitals, exempt units and detoxification in-patient rates. The rates are for the period 1/1/2020 through 12/31/2020 and are based upon state Medicaid rates. The rates also apply to treatment under the Comprehensive Motor Vehicle Reparations Act and other laws. Bulletin WC 046-1359
North Carolina announced that the IRS mileage rate for business travel of $.56 per mile is the rate to be used for reimbursement for mileage incurred for medical treatment in workers' compensation cases as of January 1, 2021. WC Notice of 2021 Mileage Rate
Texas released a WC Notice of Travel Reimbursement Rates showing historical rates for meals, lodging, mileage and aircraft mileage rates for the period January 1, 2010 to January 1, 2020. WC Notice of Travel Reimbursement Rates
West Virginia published notice of the Workers' Compensation mileage rates for 2021. WC Notice of 2021 Mileage Rates
Wyoming amended rules of the Division of Workers' Compensation on benefits effective January 7, 2021. These rules deal with awards of compensation reflecting that the Division no long allows interim PPI award payments. In addition, medical and hospital care is amended to specify "address to address" in place of "city to city" which results in exact mileage reimbursement for an injured worker. Regulation R27-14-703