Property & Casualty News

July 2018

Welcome to our latest newsletter!  As a thought leader in the Insurance Industry for over 49 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

Alabama revised the requirements regarding renewal of adjuster licenses.  Effective January 31, 2019, adjusters can now renew their license 90 days prior to the expiration date.     482-1-151-.10

Delaware issued a bulletin that addresses the roles of adjusters and contractors relating to claims for property damage.  The Insurance Department is calling for insurance companies to implement methods to improve policyholder education.     Domestic-Foreign Insurers Bulletin 101


AGENT / PRODUCER LICENSING AND APPOINTMENT

Louisiana issued a directive instructing insurers to accept written requests for change in the "producer of record" by the owner of the policy or the first-named insured.  Previously, some insurers had refused to accept such written requests.     Directive 211

The California Insurance Department (CDI) may now also accept individual tax identification numbers (ITINs) issued by the Internal Revenue Service in lieu of social security numbers when processing applicants or licensees with the CDI's online examination registration and online licensing systems.     Licensing Notice dated May 31, 2018

Utah issued a bulletin exempting the nonresident initial or renewed licensing fee for certain military individuals, or their spouses, serving in the armed forces of the United States. Instructions for processing these applications and renewals are given in the bulletin.     Bulletin 2018-3


AUTOMOBILE INSURANCE

California amended provisions regarding ignition interlock devices (IIDs).  Changes include guidelines for IIDs, random retests, and self-certification of compliance with requirements.     T. 13 s 125.02

Michigan issued a bulletin that addresses disputes between health care providers and no-fault automobile insurers.     Bulletin No. 2018-13-INS

North Carolina issued a circular letter about a new combined recoupment surcharge that will apply only to non-fleet private passenger automobile business starting on 10/01/18.     RF Circular Letter RF-18-7

North Carolina issued a circular letter announcing minor revisions to two endorsement forms related to the Personal Auto Policy Program.  The changes are applicable to all new and renewal policies becoming effective on or after 10/01/18.     Circular Letter A-18-2

North Carolina issued a circular letter reducing the commercial auto loss recoupment surcharge percentage to 7.07% (previously 14.63%). This will apply to all commercial auto policies issued to become effective from 10/01/18-09/30/19.     RF Circular Letter RF-18-6


INSURTECH & COMPLIANCE – SOMETIMES YOU JUST NEED AN EXTRA SET OF HANDS!
InsurTechs and Innovative Products are still subject to the same cumbersome compliance challenges as traditional products. Click here to learn how we help.


CERTIFICATES OF INSURANCE

Wisconsin issued a bulletin regarding unfair marketing practices and restrictions on the use of evidence of insurance, including certificates of insurance. The bulletin provides guidance on the proper use of and suggested language to be included in certificates of insurance.     Bulletin dated 06/29/18


CLAIMS / CLAIMS ISSUES

Kentucky adopted new requirements relating to negligence claims.  The new regulation establishes procedures and requirements for filing and adjudicating negligence claims under the jurisdiction of the Kentucky Claims Commission.     802 KAR 2:010

New Mexico issued a bulletin stating any insurer issuing any policy, certificate or contract of insurance, surety, guaranty, or indemnity of any kind or nature which fails for a period of 45 days to pay to the person entitled the amount due, after required proof of loss has been furnished, shall be liable for the amount due and unpaid with interest at 1.5 times the prime lending rate as determined by the superintendent. Effective 07-01-18, the interest rate is 7.125%.     Bulletin 2018-006

Puerto Rico issued a letter reminding all insurers that write property and casualty insurance in Puerto Rico not to prohibit an insured or claimant who is accompanied by his or her producer at the location where the adjustment is being made from having the producer help or orient the insured or claimant or answer any questions.  Such a prohibition imposes on the insured or claimant an unreasonable condition for carrying out the adjustment.     Ruling Letter No. CN-2018-242-D


CREDIT FOR REINSURANCE

Texas adopted amendments to update and modernize reinsurance processes, including trust accounts and letters of credit that may affect certified assuming insurers.  It also clarifies filing requirements.     28 TAC s 7.601+


CYBERSECURITY

South Carolina issued a bulletin concerning implementation of the South Carolina Insurance Data Security Act.     Bulletin 2018-02


DISASTER / CATASTROPHIC EVENT

North Carolina's governor issued an executive order that immediately terminates several previous executive orders declaring states of emergency due to natural disasters. The terminated orders are Executive Order 41 (state of emergency due to impacts from a tornado); Executive Order 44 (state of emergency due to impacts from Subtropical Storm Alberto); and Executive Order 45 (temporary suspension of motor vehicle regulation to ensure restoration of utility services and the transportation of essentials due to impacts from Subtropical Storm Alberto).     Executive Order No. 46


DISCLOSURE REQUIREMENTS

North Carolina issued a bulletin to inform all property and casualty insurers writing homeowners and private passenger automobile insurance coverage in the state about revisions to consent to rate and requirements for related disclosure statements.  These changes will become effective 01/01/19 and are applicable to new and renewal policies, and endorsements to the policy.     Bulletin 18-B-8


FILINGS: PROPERTY / CASUALTY

West Virginia now exempts certain commercial insurance lines from rate filing requirements.  However, the Insurance Commissioner may impose a one-year period rate filing requirement for any of the exempted lines should the Commissioner find that a reasonable degree of competition does not exist for that specific type of commercial insurance coverage.     SB 495; 33-20-4


FINANCIAL EXAMINATIONS

Pennsylvania issued a notice updating its schedule of per diem charges for financial examinations.     Notice 2018-06


FINANCIAL REGULATION

Idaho issued a bulletin advising insurers that their 2018 quarterly and annual financial statements should be prepared using the revised NAIC Accounting Practices and Procedures Manual.     Bulletin 18-04


MARKET CONDUCT EXAMINATIONS

Pennsylvania issued a notice updating its yearly schedule of per diem charges for market conduct examinations.     Notice 2018-07


MISCELLANEOUS

Illinois adopted regulations relating to service of process requirements for domestic insurance companies.  Domestic insurance companies must specify the contact for service of process, whether a resident agent or a company officer, in the Articles of Incorporation.     50 Ill. Adm. Code 206.10+

Michigan issued an emergency measure relating to insurance coverage requirements for medical marijuana facilities and coverage for vehicles that transport marijuana products.     Emergency Rule 1 dated 05-30-2018

Wisconsin amended provisions relating to policy renewal in affiliates.     631.39


ADVERTISING COMPLIANCE EVENT and SOCIAL MEDIA MINI-BOOTCAMP
Don’t be left out. This seminar will share advertising and social media compliance expertise and insight to help you maintain regulatory and ethical compliance. Click here to learn more!


PREMIUM TAX

New Mexico issued a bulletin regarding how to report premium tax for vehicle insurance.     Bulletin 2018-008

New Mexico issued a bulletin requiring all premium tax reports to be filed electronically, in accordance with OSI forms and instructions.  This is effective immediately.     Bulletin 2018-007


PROPERTY INSURANCE

Virginia issued an order revising the manual of rules, rates, and supplementary rating information for use in writing "Basic Property Insurance" on "Qualified Property".     Administrative Order No. 12057


REGULATORY REPORTING REQUIREMENTS

Alabama amended its regulations to remove the requirement that foreign insurers notify the Commissioner of any monetary penalty by another state or federal agency.     482-1-054-.03


SURPLUS LINES

Maryland amended regulations that expand and clarify the matters that surplus lines brokers must disclose to prospective insureds.     COMAR 31.03.06.09

Michigan issued a bulletin that sets the maximum fee that a surplus lines licensee may charge for costs, without application.  The new maximum is $62.     Bulletin No. 2018-14-INS


THIRD PARTY ADMINISTRATORS

Nevada adopted a regulation authorizing certain applicants for a certificate of registration as an administrator to submit the financial statement of the parent company of such an applicant.  Changes in owners, members, director or officers, as well as address changes, need to be submitted to the Commissioner within 30 days after the change.     NAC 683A.105


LICENSING ASSISTANCE FROM FIRST CONSULTING
In addition to our insurer and TPA licensing services, First Consulting’s licensing services are also available to other industry entities. Click here to learn more.


TITLE INSURANCE / AGENTS

Alabama revised the requirements regarding renewal of licensed title agents.  The changes are effective January 1, 2019 and applies to licenses that expire on or after January 31, 2019. Title agents can now renew their license 90 days prior to the expiration date.     482-1-148-.08

Colorado amended regulations relating to title insurance and fiduciary duties.  Changes include reporting requirements, authority, and rules handling fund controversies.     3 CCR 702 Reg. 8-1-4


WORKERS' COMPENSATION

Alaska issued an order regarding placement of workers' compensation coverage, authorizing placement with a non-admitted insurer.  The order also revises rate filing requirements and surplus lines broker records and reporting.     Order No. R 18-02

Florida amended rules related to stop-work orders, specifically reinstatement and rescission.  Changes include decreasing the minimum number of monthly payments required to enter a new payment agreement, notification, and rescission limits.     FAC Rule 69L-6.025

New Hampshire amended legislation that payment of compensation shall be made by direct deposit six weeks from the date of disability if the injured worker elects this payment method.  If no election is made, payment shall be made by paper check mailed to the injured worker.     SB 84; 281-A:40

Pennsylvania issued a circular concerning revisions to the Test Audit Program. It provides carriers with notice of the new procedure for handling Audit Non-Compliance (ANC) charges. The new procedure is outlined for any carrier requesting a test audit selection be rescinded because ANC was enforced at policy expiration.     Bureau Circular No. 1705


INSURTECH & COMPLIANCE – SOMETIMES YOU JUST NEED AN EXTRA SET OF HANDS!

InsurTechs and Innovative Products are still subject to the same cumbersome compliance challenges as traditional products.

Whether it’s determining how a new product fits within state regulation or simply a backlog of new products waiting to be filed with the states.  First Consulting has experience working with both InsurTech startups as well as innovation areas of traditional insurance carriers, to help efficiently navigate this process.

Let First Consulting be your extra set of hands to help expedite getting these products to market faster!

Contact me today to discuss how our services can help you with the latest innovations impacting your compliance department.

Sean Cox
816.391.2737
Sean.Cox@FirstConsulting.com


LICENSING ASSISTANCE FROM FIRST CONSULTING

In addition to our insurer and TPA licensing services, First Consulting’s licensing services are also available to other industry entities such as:

  • Discount Medical Plan Organizations
  • Limited Health Service Organizations
  • Pharmacy Benefit Managers
  • Warranty Service Providers

Our team of dedicated professionals have years of experience navigating the license process and are able to assist you from start to finish.

Contact me today, or click here to learn more about our TPA and specialty licensing services.

Jason Robbins
816.886.3275
Jason.Robbins@FirstConsulting.com