Property & Casualty News
March 2019
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!
ACTUARIAL
New Hampshire amended its regulation regarding actuarial opinion and memorandum and added a new section. The new section gives the Department the ability to waive any requirements of this part if the waiver does not contradict its objective or intent, and if the application of the requirements would cause confusion, be misleading to consumers, are inapplicable under the relevant circumstances, or any of the other specified circumstances. 2402.07
ADJUSTERS
Connecticut issued a notice regarding P&C insurance claim adjusters and motor vehicle physical damage appraisers. Renewals will be done via the National Insurance Producer Registry (NIPR), and electronic payment is required. Instructions will be mailed April 2, 2019 and renewals should be submitted from April 2, 2019 to June 30, 2019. Notice dated February 7, 2019
AGENT / PRODUCER LICENSING AND APPOINTMENT
Connecticut published a notice stating it will be adding new license classes to the Gateway and converting lines of authority on the Producer Database, effective 3/15/19. Notice dated 2/6/19
West Virginia issued an informational letter to provide guidance on the permissible scope of activities an unlicensed officer or employee of a licensed business entity producer or individual insurance producer can perform without having to obtain an individual producer license. Informational Letter 202
AGENT / PRODUCER TERMINATION
Colorado issued a bulletin that establishes a standardized form to be used by insurers to notify the Department that a licensed producer is being terminated for cause. The form must be used to notify the Department within 30 days of the effective date of termination of employment, contract, or other business relationship of a producer. Bulletin B-1.32 (Reissued)
AUTOMOBILE INSURANCE
Montana's Department of Justice enacted rules relating to certification of commercial driver's license (CDL) skills testing programs. The adopted rules establish requirements for entities seeking certification, including general liability insurance requirements, continuing certification, recordkeeping, and conditions under which the DMV could take action against a third-party CDL skills testing program. New Rule III dated 09-07-2018
Virginia revised requirements about reporting motor vehicle liability insurance policy change information to the state. The changes will be effective January 1, 2020. 46.2-706.1
BLOCKCHAIN
Wyoming has authorized the Secretary of State to develop and implement a blockchain filing system. HB 70
COMPLAINTS
Puerto Rico adopted a new law regarding the notice form required for bringing civil action for breaches and violations of certain provisions of the Insurance Code. Ruling CN-2019-246-D
CONFIDENTIALITY / PRIVACY
New Jersey issued a bulletin notifying insurers that the Department did not adopt any new annual notice requirements based upon NAIC Model #672, and the existing Information Practices Act that has applied since 1985 continues to apply to insurers operating in the state. Bulletin 18-16
CREDIT FOR REINSURANCE
Michigan has amended regulation regarding credit for reinsurance arrangements in order to bring state laws in compliance with the NAIC Credit for Reinsurance Model Law. Changes include requirements for letters of credit, reinsurance contracts and contracts affected, and detailed filing requirements for certified reinsurers. R 500.1121
CYBERSECURITY
Michigan enacted legislation to establish the exclusive standards applicable to licensees for data security, the investigation of a cybersecurity event, and notification to the director. HB 6491; 500.550+
DISASTER / CATASTROPHIC EVENT
Alabama issued a proclamation that expanded the State of Emergency, which began on February 23, 2019, for an additional 60 days. The proclamation provides reimbursement for performance of disaster recovery services. Proclamation 2-27-19
New Jersey issued a bulletin encouraging insurers to assist those affected by a fire at the Marcal Paper Products facility in late January. Actions that can be taken are: relaxing due dates for premium payments, extending grace periods, waiving late fees and penalties, allowing payment plans for premium payments, and assisting affected policyholders to make sure that their insurance policies do not lapse. Bulletin No. 19-03
DISCRIMINATION
New York has amended the civil rights law and the education law in relation to the prohibition of discrimination based on gender identity or expression. SB 1047
FILING REQUIREMENTS / PROCEDURES
Kentucky released a bulletin regarding form filings containing various references to arbitration or other procedures for out-of-court dispute resolution. The Department will reject insurance policy forms that require arbitration of a dispute as misleading. Surety contracts are specifically exempt from this provision. Bulletin 2019-1
Oregon issued a bulletin to clarify the requirements and procedures relating to the use of corporate and assumed business names by insurers. Bulletin DFR 2019-01
FINANCIAL EXAMINATIONS
The Texas DOI has amended its administrative code regarding the appeal of examination reports and examination frequency. These amendments are considered necessary to clarify the examination appeal procedures and allow each entity that the Department examines to appeal those findings when there is not another appeal process that is applicable. 28 TAC 1.7.A.7.83
FRAUD / ANTI-FRAUD
Florida will be part of a new statewide anti-fraud initiative called Fraud Free Florida. The Fraud Free Florida website has a link where insurance fraud of all forms can be reported. Announcement dated 3/4/19
Michigan has amended their Identity Theft Protection Act to state that, effective 1/20/20, an entity that is regulated under the insurance code of 1956 is exempt from this act. This includes an entity that owns, is owned by, or is under common ownership with such an entity, and maintains the same cybersecurity procedures as that other entity. HB 6406, 445.64
HOLDING COMPANIES
The Virgin Islands issued a bulletin regarding instructions and forms necessary for compliance with the "Virgin Islands Insurance Holding Company System Regulatory Act". Bulletin 2019-01
MISCELLANEOUS
Utah adopted a new rule prohibiting firearms, ammunition, dangerous weapons, and explosives (exclusive of law enforcement officers) at offices of the Insurance Department's Fraud Division. Rule R590-279
Wisconsin issued a bulletin implementing OPTins for companies licensed to provide certain specified coverages to pay their renewal/continuation of license fees. Any required paper filings and documentation will still need to be mailed. 2/8/19 Bulletin
REPORTS - DATA CALLS & OTHER REPORTS
Delaware's Department of Insurance is no longer requiring insurers to submit homeowners' data required by Regulation 704. Repeal of Regulation 704 is proposed in the March 1, 2019 edition of the Register of Regulations. DOMESTIC/FOREIGN INSURERS BULLETIN NO. 74 (Revised)
RISK RETENTION GROUPS
Vermont promulgated a regulation to improve the Department's surveillance of the financial condition of risk retention groups. The Department will now require annual audited financial statements, communication of internal control related matters noted in an audit, and management's report of internal control over financial reporting. Regulation C-2012-01
SERFF FILINGS
Georgia issued a message via SERFF to notify filers of updated filing fee forms that must be filled out and attached to the supporting documents page. SERFF message dated 2/12/19
TITLE INSURANCE / AGENTS
Maryland published an update regarding the annual report for title insurers and title insurance producers for the 2018 calendar year. The annual report is due on or before 3/31/19. MD Title Insurance Producers Update
New Mexico issued letters to licensed title insurance agents operating in New Mexico, requiring them to submit an annual New Mexico Title Insurance Agent’s Statistical Report and an annual New Mexico Title Insurance Underwriter’s Statistical Report for 2018. These reports are due by 5/15/19. Agents/Underwriters Statistical Report Letters
TRADE PRACTICES
The New York State Department of Financial Services has issued guidance on Whistleblowing Programs. The guidance applies to all regulated institutions regardless of industry, size, or number of employees. Whistleblower Guidance of January 7, 2019
WORKERS' COMPENSATION
Delaware's Insurance Commissioner has approved the DCRB's filing of NCCI endorsement WC 00 01 15, "Notification Endorsement of Pending Law Change to Terrorism Risk Program Reauthorization Act of 2015". The endorsement notifies policyholders of the upcoming expiration of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) on December 31, 2020, in which case premium charges for losses caused by terrorism may change. DCRB Circular No. 962
Illinois published a bulletin requiring any referral requests to the Department's Workers' Compensation Fraud Unit for investigation and potential referral for prosecution be submitted with a completed Workers' Compensation Fraud Unit Referral form. Bulletin 2019-01
Pennsylvania is conducting its annual workers compensation Special Schedule "W" data call, which is due 4/15/19. 2018 Special Schedule W