Property & Casualty News
March 2022
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 CONTINUING EDUCATION
Hawaii released new requirements for all resident insurance producers to complete continuing education credit requirements before their license renewal due date. Also, the Insurance Division will no longer accept a continuing education certificate of completion directly from the licensee. Memorandum 2022-3LIC
AUTOMOBILE INSURANCE
Oklahoma's Insurance Department informs all Property & Casualty carriers of the Supreme Court's decision in Lane v. Progressive Northern Insurance Company. The Oklahoma Supreme Court found that the uninsured motorist exclusion violates 36 O.S. 3636, is against public policy and void and unenforceable. PC Bulletin 2022-01
COMMERCIAL LINES INSURANCE
Kansas' Insurance Department published notice of changes in exempt commercial purchaser thresholds. Notice of Changes dated February 24,2022
CREDIT FOR REINSURANCE
Maine amended its Credit for Reinsurance rule to adopt NAIC Model Rule 786. The changes apply to reinsurance ceded by domestic insurers to insurers that are domiciled in reciprocal states. Rule 740
New Mexico repealed its reinsurance law and replaced it with the NAIC model Credit for Reinsurance Act. SB 150
CYBERSECURITY
Connecticut is asking insurers to stay on high alert and be vigilant in their efforts to protect their operations, consumer data and operations. This notice is in regard to the increased geopolitical risk originating from events in Eastern Europe and the threat of cyber-attacks. Notice dated March 3, 2022
New York issued a notice concerning the situation in Ukraine. Guidance is given to fully comply with U.S. sanctions and all New York state and federal laws regarding cybersecurity and virtual currency. Industry Letter dated February 25, 2022
LIABILITY INSURANCE
New York allows a liability insurance policy to be written with a term of less than one year if the insurer also provides the option to purchase a policy for a term of one year, and the policy is written on an occurrence basis. There are additional requirements listed in the law. AB 8698
MISCELLANEOUS
Federal Financial Crimes Enforcement Network (FinCEN) alerts all financial institutions to be vigilant against efforts to evade the sanctions and other U.S. imposed restrictions. Details on filing a Suspicious Activity Report (SARS) and specific methods that may be used to avoid sanctions are listed in detail. FIN-2022-Alert 001 of March 7, 2022
Massachusetts' Division of Insurance is going live on State Based Systems (SBS) effective March 16, 2022. This change includes continuing education submissions for producers. All producer appointments and terminations must be submitted via NIPR. Companies will be assigned a new Massachusetts Company Number. Notice dated February 25, 2022
Missouri's Insurance Department requests all insurers issuing policies covering real or personal property to update its disaster contact information in anticipation of the spring storm season. This includes a primary regulatory contact, secondary regulatory contact, and a communications contact. Bulletin 22-02
NOTICE TO INSUREDS
Oklahoma requires all Property and Casualty insurers to provide a notice to each policyholder upon renewal of an existing policy where a reduction in coverage during renewal occurs. The notice must state any policy provision that has changed which eliminates or restricts coverage due to a triggering event. The notice must be printed in all capital letters and use bold or red font. Special Notice dated February 28, 2022
PERSONAL LINES INSURANCE
Michigan's Department of Insurance urges insurers writing homeowners insurance to exercise flexibility when facing delays in completing repairs during the COVID-19 pandemic. Supply chain delays and labor shortages are causing unusual delays in repairs. Some homes are uninhabitable while repairs are being completed. Withholding payments, including living expenses, when a claim is not in dispute is an unfair trade practice. Bulletin 2022-07-INS
REPORTS - DATA CALLS & OTHER REPORTS
South Carolina issued a data call for liquor liability insurance coverage to property and casualty carriers, and surplus lines insurers. Notice dated March 3, 2022
SERVICE CONTRACTS / WARRANTY INSURANCE
South Dakota expands the items that a motor vehicle service contract may provide and adds a definition of a vehicle theft protection product. Motor vehicle service contracts continue to be exempt from the insurance code. SB 160
TITLE INSURANCE / AGENTS
New Mexico's Superintendent of Insurance requires filing of 2022 Agreed Upon Procedures and 2022 Agents and Underwriters Statistical Reports by May 16, 2022. Docket No. 2022-14 and 2022-15
WORKERS' COMPENSATION
Nevada's Division of Industrial Relations, Workers' Compensation Section revises certain maximum allowable provider payments in the Nevada Medical Fee Schedule beginning March 1, 2022 and running through January 31, 2023. Notice dated March 1, 2022
New Jersey's Compensation Rating and Inspection Bureau published updates to the New Jersey Workers' Compensation Insurance Plan with policy expirations effective June 2022. Circular Letter 2027 dated March 3, 2022
New York added new guidelines for treatment of eye disorders, traumatic brain injury and complex regional pain syndrome in the worker's compensation regulation. These guidelines are effective May 2, 2022. 12 NYCRR 324.2
Oregon amends Form 827, worker's and health care provider's report for workers' compensation claims to clarify that legal holidays are not counted in the 72-hour period within which the form must be sent to the insurer by the provider. OAR 436-010-0241
Texas announces that it has adopted the amendments of the National Council on Compensation Insurance Manuals, as proposed in Item B-1444-NCCI's Basic Manual for Workers Compensation and Employers Liability Insurance (TDI ECase No 27556; SERFF Tracking No. NCCI-132867551). Changes apply to new and renewal policies effective on July 1, 2022. Order 2022-7251
Texas' Department of Insurance informs all insurers writing workers' compensation and employers' liability insurance that rate filings are required by June 1, 2022, including the Notice of Carrier Intent and Certification. The Bulletin contains detailed filing information. Bulletin B-0001-22
Texas' Division of Workers' Compensation adopted amendments to the Claim Electronic Data Interchange (EDI) rules to accept new and revised versions of forms and notices. These revised plain language notices are effective July 26, 2023. 22 TAC 102.4, Notice dated February 23, 2022
Texas' Division of Workers' Compensation is updating its EDI reporting standard. Updates to reporting and notification requirements are being implemented. 28 TAC 124.2