Property & Casualty News
June 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!
AUTOMOBILE INSURANCE
Michigan issued a bulletin clarifying choices made by an insured regarding the dollar limit for PIP medical coverage under a no-fault auto policy. A carrier must issue/renew a policy at the $250,000 limit for PIP medical benefits without the exclusions if the applicant/insured requested this even if he/she fails to provide requisite proof of Qualified Health Coverage. Bulletin 2021-25-INS
Nevada passed a law that requires insurance companies to offer uninsured and underinsured vehicle coverage in policies that cover motorcycles. Carriers must also offer the option of covering certain medical expenses in policies that cover motorcycles. AB 130
North Carolina's Reinsurance Facility has filed with the Insurance Commissioner revised territory definitions for Commercial Auto, adopting zip code rating under the Facility's Commercial Automobile Manual. The revised definitions become effective October 1, 2022. Circular Letter RF-21-5
Texas passed a law dealing with liability coverage under a personal automobile insurance policy for a temporary vehicle provided to an insured by an automobile repair facility. HB 1787
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
New Hampshire amended its law to allow carriers writing automobile insurance, certain property and liability insurance, and commercial insurance to electronically deliver a cancellation or refusal to renew notice when certain requirements are met. HB 520
CREDIT FOR REINSURANCE
Texas amended its reinsurance law to allow credit for reinsurance ceded to certain eligible assuming reinsurers who are in a reciprocal jurisdiction. HB 1689
CYBERSECURITY
Virginia promulgated the Insurance Data Security Risk Assessment and Reporting Regulation which sets minimum standards for risk assessment and security standards required of all licensees. 14 VAC 5-430-10
DISCRIMINATION
Colorado passed a law making it a discriminatory practice for an auto insurer to non-renew or refuse to write coverage because of gender identity or gender expression. HB 1108
FINANCIAL REGULATION
New Jersey amended its Annual Financial Reporting rule to include definitions of audit committee and internal and external audits to reflect the NAIC model. The law sets forth details of required audits. Rule NJAC 11:2-26.2
LIABILITY INSURANCE
Iowa enacted a law allowing personal delivery devices. This device is manufactured for transporting cargo and goods in a pedestrian area and is equipped with automated driving technology that enables the operation of the device with the remote support and supervision of a natural person. A general liability insurance policy of not less than $500,000 for damages is required for this device. HF 304
Oregon enacted a new law requiring an insurer to notify a claimant at the time it pays $5,000 or more to settle a third-party liability claim. Requirements and parameters are spelled out in the statute. SB 180
PERSONAL LINES INSURANCE
Nevada has a new law applicable to homeowner's insurance, renter's, mobile home and umbrella policies. An insurance company cannot refuse to issue, cancel, refuse to renew or increase a premium rate solely on the basis of a specific breed or mixture of breeds of a dog harbored or owned on a property. A carrier cannot ask about specific breed and can only ask if the dog is known to be dangerous or vicious. SB 103
THIRD PARTY ADMINISTRATORS
Washington revised the Workers' Compensation Self-insurance Rules and Regulations dealing with TPAs who administer workers' compensation claims for a self-insured employer. A TPA must be licensed by the Department of Labor and Industries. Every person who makes claim decisions must be a certified claims administrator or in the process of getting that certification. Other requirements are also included. WAC 296-15-001, 296-15-350
TRADE PRACTICES
Nevada has expanded penalties for certain unfair trade practices such as those directed toward an elderly person or a person with a disability. AB 61
TRAVEL INSURANCE
South Carolina revised its travel insurance law to issue a limited lines travel insurance producer license, and to add travel insurance to the inland marine insurance definition. Many other new requirements are included. SB 435
WORKERS' COMPENSATION
Alabama changed its occupational disease requirements for a firefighter to add that if a firefighter dies of cancer within 10 years of the last date of employment he/she will be considered to have been killed in the line of duty for death benefits. HB 532
Iowa's Division of Workers' Compensation published the annually adjusted amounts of the Maximum and Minimum Weekly Benefit for the next year ending June 30, 2022. The maximum weekly benefit amount depends on the type of workers' compensation benefit. Notice of Weekly Minimum and Maximum Rates 2021 dated June 1, 2021
Minnesota Department of Commerce has approved new injury description codes for adverse reaction to vaccination for COVID-19 and other diseases. WC Circular Letter No 21-1787
Montana Department of Labor and Industry, Workers' Compensation Section, announces the permanent total disability benefit cost of living increase. Notice dated June 2, 2021 (2)
Montana Department of Labor and Industry, Workers' Compensation Section, has adopted the state's average weekly wage for fiscal year 2022. Notice dated June 2, 2021 (3)
Montana Workers' Compensation Section of the Department of Labor and Industry announces the adoption of the average rate for U.S. 10-year treasury bills. This rate is used for discounts and amortization calculations. Notice dated June 2, 2021 (1)
New Jersey issued a Workers’ Compensation Medical Data Call. Member groups with total standard premium volume of 1% or more of the statewide total (based on the latest New Jersey Mid-Year Report of Premiums) are required to participate. Circular Letter #2009
New York requires a carrier, self-insured employer, TPA or Special Funds to furnish workers' compensation indemnity or death benefits by direct deposit if the worker or person entitled to a death benefit elects to receive benefits by direct deposit. The forms to elect to receive payment by direct deposit must be displayed on their websites along with instructions for submission of the form. 12 NYCRR 300.26
New York Workers' Compensation and Employers' Liability Manual has been revised to incorporate Department of Financial Services changes to classification codes. Bulletin R.C. 2539
Oregon notified workers' compensation carriers, self-insured employers and vocational assistance providers of the updated cost-of-living matrix and fee schedule for vocational assistance expenditures. It also sets forth the new state average weekly wage. This bulletin contains forms, examples, checklists and a chart for insurers. Bulletin 124 (Revised)
Pennsylvania's Compensation Rating Bureau has approved Basic Manual revisions to Section 1, Rule IX, H. Pennsylvania Construction Classification Premium Adjustment Program (PCCPAP) effective October 1, 2021. This applies to new and renewal business. The Circular lists the complete PCCPAP credit table. PCRB Circular No. 1764
Pennsylvania's Insurance Commissioner approved PCRB Filing No. 323 which revises two components of the Workers’ Compensation Manual of Rules, Classifications and Rating Values for Workers Compensation and for Employers Liability Insurance (Basic Manual), Experience Rating Plan. PCRB Circular No. 1765