Property and Casualty News
January 2022
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!
ADJUSTERS
Alaska's Insurance Department issued a bulletin informing carriers it is accepting independent adjuster license exemption applications due to the Disaster Declaration as a result of severe winter storms, extreme winds and cold temperatures. The license criteria that must be met is provided in the bulletin. Bulletin B22-01
AUTOMOBILE INSURANCE
Colorado amended its regulation concerning automobile insurance consumer protections. Among other things, "Usage-based insurance" as a rating structure is re-defined. Regulation 5-2-12, 3 CCR 702-5
Michigan's Department of Insurance reports that the Michigan Catastrophic Claims Association Board voted to return approximately $3B of surplus to member insurance companies. Insurers are expected to issue refunds to policyholders of policies in force as of October 31, 2021. The refunds must be completed no later than May 9, 2022. Bulletin 2021-44-INS
Oregon's Department of Consumer and Business Services issued a bulletin concerning the expected 2021 auto rates and filings for private passenger auto insurance considering the changes to consumer driving patterns as a result of the COVID-19 pandemic. Updated rates and information provided in response to the questions found in the bulletin are required to be submitted by April 1, 2022. Bulletin DFR 2021-6
CREDIT FOR REINSURANCE
Colorado amended its Credit for Reinsurance regulation to bring it in line with revisions to the NAIC Credit for Reinsurance Model Regulation. Amended Regulation 3-3-3; 3 CCR 702-3
The Texas Department of Insurance adopted new regulations for credit for reinsurance. The changes eliminate collateral and physical presence requirements for certain insurers that regulate aspects of reserve financing. 28 TAC 7.614 - 7.616
DISASTER / CATASTROPHIC EVENT
Alaska's Insurance Division issued a bulletin asking carriers of all lines of insurance to provide fair treatment to consumers following severe weather. The Governor declared a disaster in Alaska due to severe winter storms, winds, and extreme cold temperatures in certain geographic areas. Carriers are directed to provide extension of premium grace periods of at least two weeks, conduct a reasonable investigation of all available information, and act promptly on communications with consumers. Bulletin B22-02
Colorado adopted an emergency regulation to protect homeowner policyholders who suffered a loss during a catastrophic disaster such as the recent wildfires. The regulation identifies specific acts or practices that may constitute unfair claim practices by insurers in regard to additional living expense coverage, delay in claim settlement for a catastrophic disaster, and recoverable depreciation. Emergency Regulation 22-E-01
MISCELLANEOUS
Idaho's Insurance Department issued a bulletin about the Terrorism Risk Reinsurance Program Reauthorization Act of 2019 which extended the Terrorism Risk Insurance Act of 2002. The Act has been extended through 2027 by Congress. The law and its impact on commercial carriers is explained in detail. Some carriers must submit rates, policy form language and disclosure notices. Bulletin 22-01
POLICY LANGUAGE
Oklahoma's Insurance Department issued a bulletin to all Property & Casualty Carriers. The Department directs that any policy language that reduces or restricts coverage due to a triggering event during the policy term must be printed in all CAPS and in bold or red font, so as to be clearly visible to a policyholder. Bulletin PC 2022-01
PROPERTY INSURANCE
Michigan's Department of Insurance released its periodic update of municipalities taking part in the Fire Insurance Withholding Program. Municipalities Participating in the Fire Insurance Withholding Program - Edition 139
Virginia revised the rule that establishes minimum standards for the contents of dwelling property and homeowners’ insurance policies. 14 VAC 5-340-10
REINSURANCE
New Jersey released its list of qualified "Certified Reinsurers." All insurers domiciled, licensed or eligible to write surplus lines insurance are allowed to take full credit for reinsurance ceded to the listed reinsurers under specified circumstances. Notice dated January 1, 2022
REPORTS - DATA CALLS & OTHER REPORTS
Florida's Insurance Commissioner reminds insurers that SB 76 contains new claims litigation data reporting requirements for personal and commercial residential property insurers. Informational Memorandum OIR-22-01M
TITLE INSURANCE / AGENTS
The Texas Insurance Commissioner issued a mandatory data call to title insurance underwriting companies doing business in Texas. The required information must be reported by February 28, 2022. Bulletin B--0031-21
TRAVEL INSURANCE
Wisconsin passed the NAIC Model Travel Insurance Act. Travel insurance is currently regulated by authorizing a limited lines travel insurance producer's license and allowing travel retailers to offer travel insurance under a limited lines travel insurance firm license. This bill maintains these requirements and allows TPAs, Managing General Agents and others to apply for a limited lines producer license. SB 482
WORKERS' COMPENSATION
Alaska's Workers' Compensation Division announced updated allowances for transportation, meals and lodging while traveling for medical treatment. Bulletin WC 22-01
Connecticut's Governor announces a 2022 rate decrease for workers' compensation insurance for the 8th straight year. Notice dated January 12, 2022
Michigan amended its workers' disability compensation general rules. Rule 408.31
Michigan announced updated travel reimbursement rates for injured employees including mileage, meals, and lodging. Travel Reimbursement Rates dated 1-1-2022
Ohio's Bureau of Workers' Compensation amended rules regulating professional employer organizations (PEOs). Rule 4123-17-15
South Carolina announces that it approved the NCCI's most recent loss cost filing. It has an approval date of December 15, 2021, with an effective date of February 1, 2022. Insurers must make a filing to adopt the new loss costs within 60 days after the approval date. The effective date of this adoption must be within 120 days of NCCI’s effective date of the approved loss costs. Approval of NCCI Loss Cost Filing - Bulletin posted December 21, 2021
The Texas Department of Workers' Compensation released an updated fact sheet on the impact of COVID-19 in the Texas Workers' Compensation System. The fact sheet can be found on the Department's website. COVID-19 in Texas Workers' Compensation System Report