Property & Casualty News
March 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!
ADJUSTERS
Illinois has a new approved Public Adjuster Contract Template and Checklist for Public Adjuster Contracts on its website. Any changes made to a company's previously filed and approved public adjuster contract must be filed with the department prior to use. Company Bulletin 2021-02
AGENT / PRODUCER LICENSING AND APPOINTMENT
California's Insurance Commissioner issued an annual reminder to insurers, producers, independent and public adjusters, title marketing representatives and others of the requirement to report changes to background information within 30 days of the change. Examples of background information include certain bankruptcy proceedings, fraud, misappropriation or conversion of funds, felony or misdemeanor convictions, and driving while under the influence. Notice dated March 5, 2021
Pennsylvania notified all licensees it is discontinuing licensing renewal and continuing education extensions it implemented as a result of COVID-19. Details are contained in the bulletin. Notice 2021-02
AUTOMOBILE INSURANCE
New Hampshire has readopted and amended its regulation dealing with determining the amount of a motor vehicle total loss claim. Ins. 1002.15
New Jersey passed a law regarding the use and regulation of cannabis that also includes a section on insurance coverage required in automobile liability insurance. AB21
Oregon issued a bulletin setting forth guidance to auto insurers issuing personal lines auto policies with step-down limits. It outlines necessary disclosures to inform consumers of the nature and extent of coverage and replaces DFR 2020-19. Bulletin DFR 2021-2
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
Maryland's Insurance Commissioner issued a bulletin regarding the impact that delays by the U.S. Postal Service is having on cancellations, non-renewals, and non-payment of premium payments. The Department is requesting insurers and producers to make robust efforts to advise policyholders of all available electronic means for premium payment and receipt of required notices. Bulletin 21-08
CIVIL ACTIONS
Indiana enacted legislation providing civil immunity from damages resulting from an individual being exposed to COVID-19. The exposure must take place on the premises owned or operated by a person, on any premises on which the person or employee or agent of the person provided services to the individual, or during an activity managed, organized or sponsored by the person. SB 1
South Dakota has enacted a law to limit liability for certain exposures to COVID-19 occurring between January 1, 2020 and December 31, 2022. This applies to owners of premises, health care providers, and personal protective equipment manufacturers. HB 1046
CYBERSECURITY
New York Department of Financial Services, Cybersecurity Division issued an industry letter concerning increased cyber-attacks on Instant Quote Websites. Carriers are encouraged to review those websites for evidence of hacking. Even if the NPI is redacted, hackers have shown they are adept at stealing the full unredacted NPI. Industry Letter dated 2/16/21
DISASTER / CATASTROPHIC EVENT
Louisiana's Insurance Commissioner issued a bulletin providing guidance to P&C and surplus lines insurers regarding time periods for proof of loss submission and for completion of repairs under replacement cost coverage. This is in regard to the multiple hurricanes that struck Louisiana in 2020. Insurers are requested to act responsibly in granting extensions of time to policyholders who need additional time to complete repairs. Bulletin 2021-02
The Texas Commissioner issued a bulletin to P&C carriers regarding underwriting, rating and nonrenewal of policies for people who were temporarily displaced from their homes and jobs during the severe winter weather event. Carriers are expected to revise their practices as specifically set forth in the bulletin. Bulletin B-0007-21
The Texas Commissioner issued a bulletin reminding claims adjusters and public adjusters of state laws and expecting them to work with policyholders and extend relief as insureds recover from the severe winter weather in Texas. Bulletin B-0006-21
FILING REQUIREMENTS / PROCEDURES
Arkansas instructed property and casualty carriers of new filing requirements. When submitting amendments or changes to policies, endorsements or rule manuals previously approved, carriers must submit a red-lined version of the language and a summary or memorandum clearly identifying the changes. Bulletin 1-2021
FLOOD INSURANCE / NFIP
Federal Emergency Management Agency (FEMA) updated the list of eligible communities to purchase insurance under the National Flood Insurance Program and those communities suspended for noncompliance with flood management requirements. Regulation 44 CFR 64.6
FEMA made changes in the regulation to comply with the Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowners Flood Insurance Affordability Act of 2014. These changes make corrections to the July 20, 2020 revisions published in the Federal Register. Regulation 44 CFR 61.6
GENERAL LIABILITY INSURANCE
Tennessee amended its Hazardous Waste Management Regulations to align with the current federal regulations to avoid unnecessary costs to Tennessee businesses. The amendments will reduce the cost to all persons required to test waste by providing updated testing standards and those persons who manage hazardous waste aerosol cans as universal waste. Regulation 0400-12-01-.01
HOLDING COMPANIES
Kansas amended its Insurance Holding Company reporting forms and instructions to update "policy and procedure" changes. They are based upon NAIC model language and replace the December 10, 2014 version. Kansas also adopted "Policy and Procedure Providing Corporate Governance Annual Disclosure Filing Instructions." Administrative Regulations 40-1-28, 40-1-52
LIABILITY INSURANCE
South Dakota enacted a law regarding drones. This includes prohibiting a person from intentionally using a drone to photograph, record or observe another person in a private place. A person is also prohibited from landing a drone on real property or the waters of a landowner who owns the real property beneath the water body without the landowner's consent. SB 74
PROFESSIONAL LIABILITY INSURANCE
Indiana's Department of Insurance published its Surcharge Rates for Hospitals and Physicians who elect to be qualified under the state's medical malpractice act. The overall surcharge for physicians decreased by 1.65% from the current rates. Bulletin 257
TITLE INSURANCE / AGENTS
Maryland's Insurance Commissioner issued a bulletin advising title insurers they need to include law firms in their producer register and should put necessary procedures in place to ensure any newly appointed law firm is added to the register within 30 days of their appointment. Bulletin 21-06
WORKERS' COMPENSATION
California's Division of Worker's Compensation amened existing regulations to increase the relative value of payments made under the Medical-Legal fee schedule. It also implements a new system based on flat fees for services provided and eliminates the use of complex factors and the majority of hourly billing under the Medical-Legal Fee Schedule. Regulation T.8 s 9793
Nebraska announced that a new Nature of Injury Code for Adverse Reaction to Vaccination was recently approved by the Workers' Compensation Organization (WICO) and recommended by the International Association of Industrial Accident Boards and Commissions (IAIABC). The Nebraska Workers' Compensation Court is accepting the new code. WC Notice dated 2/18/2021
New Jersey Compensation Rating and Inspection Bureau notified bureau members that it is implementing a new process for how the carrier of record can access rating worksheets. The New Rating Worksheet Notification and Delivery Process is explained in the Circular Letter. Circular Letter #2004
New York implemented an internet portal-based submission and review process for Prior Authorization Requests. Sections of the rule regarding workers' compensation and medical treatment and medical and surgical care and treatment, are amended, among other sections. 12 NYCRR 324.1
New York Workers' Compensation Board has updated fees, created a prior authorization process and replaced the Durable Medical Equipment fee schedule. Bulletin WC 046-1379