Property & Casualty News
July 2021
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
Arkansas Insurance Department announced that insurance exams for producers are now available to be taken remotely through third-party testing partner, PSI Services. Notice dated June 11, 2021
Nebraska's Department of Insurance announced that all insurance license applications must be submitted online. Paper license applications will no longer be accepted. Notice dated June 14, 2021
AUTOMOBILE INSURANCE
Maine enacted legislation that relates to persons excluded by endorsement from coverage on an automobile policy that constitutes proof of financial responsibility. Such person must be listed on the evidence of insurance or financial responsibility (insurance cards) as a person excluded by the policy. HP 749
Maine passed a law to improve fairness in auto insurance claims. If an insurer uses the value of a comparable motor vehicle to assess the value of a damaged motor vehicle, then the comparable motor vehicle must be in the eastern states of Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island or New York. HP 854
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
Louisiana enacted legislation relating to cancellation and reinstatement by an insurer of a casualty insurance policy. An insurer that issues a notice of cancellation on an insurance policy that provides casualty coverage and later continues or reinstates that insurance policy must make specific notifications. Notice of reinstatement must be sent to every policyholder, producer, or other known person having an interest in any loss under the policy and who received the notice of cancellation. SB 42
Texas enacted a law regarding private passenger automobile insurance and an insurer's nonrenewal of such coverage due to an insured's failure to cooperate in a claim investigation, settlement, or defense. The law provides details concerning the written notice that must be given to the named insured. SB 1692
CLAIMS / CLAIMS ISSUES
Louisiana amended a claims payment law which requires a carrier to issue a copy of its field adjuster report, relative to the insured's property damage claim, within 15 days after the insured requests it. HB 585
COMMERCIAL LINES INSURANCE
Louisiana enacted a law regarding property insurance deductibles for named storms, hurricanes, wind and hail. SB 70
CORPORATE GOVERNANCE
Maine enacted a law requiring domestic, publicly held corporations to comply with board of directors gender parity requirements beginning June 1, 2023. HP 878
CREDIT FOR REINSURANCE
Oregon adopted the NAIC model law regarding credit for reinsurance. HB 2045
CYBERSECURITY
Connecticut amended its law dealing with data privacy breaches to expand the types of information subject to data breach notification to a consumer and the attorney general. These include many items not previously in the law such as certain email addresses, taxpayer ID number, passport number, and military identification number, etc. The time to send notice of breach is reduced from 90 to 60 days after discovery of the breach. HB 5310
Hawaii adopted the NAIC Data Security Model Law. SB 1100
New York issued Ransomware Guidance to all New York regulated entities. Each company is asked to implement the controls outlined in the Guidance to the extent possible to address the risk of ransomware attacks. Filing Guidance of June 30, 2021
West Virginia Insurance Department issued a ransomware Cybersecurity Alert to increase awareness and inform of several mitigation strategies to help reduce the risk of a ransomware attack. Companies are urged to discuss the ransomware threat and review corporate security and business continuity plans. Bulletin 21-05
DISASTER / CATASTROPHIC EVENT
Ohio's Superintendent of Insurance issued a Bulletin encouraging insurers to continue providing premium flexibility to insureds during the COVID-19 global pandemic. Premium flexibility includes providing a grace period, offering payment accommodations such as deferring payments at no cost, extending payment due dates, or waiving late or reinstatement fees. No enforcement action with respect to filed forms and rates will be taken if insurers adjust their policies and practices to provide the flexibility outlined in the bulletin. Bulletin 2021-03
DISCRIMINATION
Connecticut amended its Unfair Insurance Practices law dealing with insurance discrimination. A P&C carrier cannot discriminate against an individual in issuing, renewing, amending, endorsing, or cancelling a policy, or setting premiums because the individual has been a victim of domestic violence. HB 6590
ELECTRONIC TRANSACTIONS
Illinois replaced their Electronic Commerce Security Act with the Uniform Electronic Transactions Act. This law allows an electronic record to be used if the law requires a record be in writing. It also allows a electronic signature to be used if the law requires a signature. SB 2176
MISCELLANEOUS
Michigan's Department of Insurance and Financial Services published a bulletin informing carriers that using zero-dollar claims as a proxy for loss history is not permitted. Some carriers are increasing premiums, negatively underwriting or refusing to renew coverage on the basis that an insured inquired about policy provisions such as collision deductible, etc. Carriers are encouraged to self-report existing underwriting rules or rates based on zero-dollar claims and file rule or rate revisions by July 30, 2021. Bulletin 2021-27-INS
ORSA: OWN RISK AND SOLVENCY ASSESSMENT
New Mexico promulgated a rule providing requirements for maintaining a risk management framework and completing an own risk and solvency assessment. It also provides guidance and instructions for filing an own risk and solvency assessment with the Superintendent. This rule applies to insurers domiciled in New Mexico. 13.2.11.1 NMAC
POLICY LANGUAGE
Oregon's Insurance Commissioner issued a Bulletin giving guidance to carriers regarding exclusionary language relating to the possession or use of controlled substances. Bulletin 2021-4
TRAVEL INSURANCE
Connecticut enacted a law which prohibits a travel insurance policy from excluding coverage because the insured's spouse, child, dependent relative who resides in the insured's household or traveling companion dies by suicide. SB 89
Maine enacted an extensive travel insurance law covering Maine residents. It covers eligibility, underwriting, benefits, disclosures, filing and approval of forms, sales practices and producer licensing. SP 506
WORKERS' COMPENSATION
Arizona's Industrial Commission adopted the maximum average monthly wage for injuries occurring during calendar year 2022. Notice dated June 17, 2021
California Workers' Compensation Insurance Rating Bureau issued a bulletin regarding amendments to Standard Forms and Advisory Policyholder Notice. This deals with a farm schedule endorsement and an independent contractor policyholder notice, in addition to updated underwriting notes. Filing instructions are included. WCIRB 2021-10
Iowa Division of Workers' Compensation published a booklet providing information and guidelines in handling workers' compensation claims to be used for the period July 1, 2021 through June 30, 2022. Ratebook 2021-2022
Kansas published the Maximum Benefit for Workers' Compensation claims for the period July 1, 2021 through June 30, 2022. The mileage reimbursement rate was also published and takes effect January 1, 2022. WC Notice of Maximum Benefit and Mileage date June 18, 2021
Louisiana changed its requirement that a carrier must retain the services of a Louisiana domiciled independent claims adjusters to simply retaining the services of a claims adjuster who possesses a Louisiana license. HB 74
Nevada's Division of Industrial Relations of the Department of Business and Industry adopted an Actuarial Annuity Table. The factors in this table are applied to awards for monthly permanent partial disability to calculate lump-sum settlements. This table is effective July 1, 2021 through June 30, 2022. Notice dated June 24, 2021