Property & Casualty News
March 2023
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
Arizona updated its license types and names that the Department issues to P&C agents and organizations, among others. Rule Table A dealing with Licensing Time-Frames had not been updated since 1999. Rule R20-6-708
Connecticut's Licensing Division of the Insurance Department issued a FAQs document regarding renewals of Adjuster and Motor Vehicle Physical Damage Appraiser licenses. Notice dated 3/1/2023
AUTOMOBILE INSURANCE
Connecticut's Insurance Department issued a notice to insurers regarding recent Hyundai and Kia theft issues. Insurers are reminded they must file their underwriting rules used to determine whether or not to write such business and any modifications to their rules. Notice dated February 16, 2023
Maryland's Insurance Commissioner informs P&C carriers writing motor vehicle coverage of the Department's position on refusing to insure specific Hyundai or Kia models. Carriers may not refuse to insure a risk for which it has a filed rate. Carriers wishing to amend a rate related to these vehicles must first consult the Department. Bulletin 23-3
Michigan reminds insurance companies they must offer coverage to all "eligible persons" and that failure to do so may constitute a violation of the Essential Insurance Act. This reminder is due to some insurers refusing to insure certain Kia and Hyundai automobiles based on the fact they lack particular anti-theft technology or there has been an increase in thefts of those vehicles. Bulletin 2023-03-INS
Virginia's Bureau of Insurance established certain standard automobile insurance forms for uninsured motorist coverage effective July 1, 2023. Administrative Order 12165
CLAIMS / CLAIMS ISSUES
New Mexico promulgated an amendment to its Trade Practices and Fraud rule. Catastrophic claims must be settled within a 90-day period after the assignment of a catastrophic claim number when a catastrophic loss has been declared. 13.7.4.1 NMAC
DISASTER / CATASTROPHIC EVENT
California Governor Gavin Newsom proclaimed that the COVID-19 emergency no longer exists as of February 28, 2023. Emergency Proclamation dated February 28, 2023
DISCRIMINATION
New York passed a law that prohibits insurance carriers from cancelling, refusing to insure, increasing premium, or limiting coverage solely on the basis that a claim has been made against a policy in the preceding 60 months for a loss that is the result of a hate crime. This applies to specific policyholders. AB 2207
HOLDING COMPANIES
Kentucky amended its insurance holding company system regulation. 806 KAR 37:010
MARKET CONDUCT
Kentucky's Department of Insurance changed its Error Tolerance Rates applied in market conduct examinations to allow for a more thorough analysis of insurance operations conducted in Kentucky. Bulletin 2023-001
MISCELLANEOUS
Arkansas amends its Good Samaritan Law to indicate a person or non-profit organization who renders or sponsors suicide prevention intervention with no compensation, is not liable for civil damages in any action for any act or omission unless it was not in good faith and was the result of gross negligence or willful misconduct. SB 48
Mississippi passed a law that amends the sworn declaration requirements for reciprocal insurance and revises requirements of the Board of Directors for the reciprocal. HB 1162
PERSONAL LINES INSURANCE
Nevada's Division of Insurance provided guidance to P&C insurers writing personal lines. Insurers are required to cease adverse credit based re-scoring as a result of any change in the policyholder's consumer credit report or insurance score which occurred on or after March 1, 2020.
Premium increases given at renewal may need to be refunded. Carriers must confirm compliance with the Insurance Department. Notice dated February 23, 2023
Virginia's Insurance Bureau reminded insurers of the requirement to file all updated dwelling property and homeowners insurance policy forms and endorsements by certain deadlines. Forms must be filed by May 1, 2023, and approved forms must be used for policies issued on or after December 31, 2023. Notice dated February 22, 2023
PROPERTY INSURANCE
California published its annual notice to Residential Property Insurers, Licensed Independent Insurance Adjusters, Agents, and Brokers of the laws applicable to property insurance policies, including those related to a declared state of emergency. The most recent copy of the Commissioner's notice must be provided to claimants within 15 days after receiving notice of claim due to a state of emergency. Notice dated February 27, 2023
California's Insurance Commissioner notifies insurers writing residential or commercial property insurance of a new insurance pricing regulation. This regulation recognizes and rewards wildfire safety mitigation efforts made by homeowners and businesses. Insurers are to establish a process for releasing wildfire risk determinations no later than April 12, 2023 and create a right for their policyholders to appeal that determination. Bulletin 2023-2
Florida's Insurance Commissioner notifies all personal and commercial residential property insurers of new law, Senate Bill 2-A. This law makes revisions to prompt pay laws for property insurance, authorizes the use of electronic methods to investigate a claim, maintaining certain records, and establishes claim filing deadlines. Informational Memorandum OIR-23-01M
Louisiana's Insurance Department encourages property insurers to participate in the voluntary property insurance market by enacting the Insure Louisiana Incentive Program. This program addresses the crisis in availability and affordability of insurance brought about by catastrophic losses from Hurricanes Laura, Delta, Zeta, and Ida. Emergency Rule 48, LAC 37 XI.4801
REPORTS - DATA CALLS & OTHER REPORTS
Florida's State Board of Administration amended a rule specifying certain deadlines and requirements for insurers that participate in the Florida Hurricane Catastrophe Fund. FAC Rule 19-8.029
North Carolina's Department of Insurance informs certain P&C insurers writing homeowners coverage of the annual data report of homeowner policy writing, including homeowners wind and hail, in the beach and coastal areas. Data must be submitted by April 1, 2023. Bulletin 23-B-01
TAX CREDITS
Idaho's Insurance Department announces its intent to allow a refund of any amount overpaid on the carrier's 2021 premium taxes due to two guaranty association assessments levied upon P&C carriers on November 17, 2021 and November 1, 2022. Bulletin 23-03
WORKERS' COMPENSATION
Indiana's Compensation Rating Bureau announced an annual premium call due by March 31, 2023. This pertains to the Indiana Assigned Risk Reinsurance Pool. Circular Letter 2023-02
Minnesota Workers' Compensation Insurers Association announced expanded ability to respond to a variety of work comp related inquiries when members utilize an on-line chat feature. WC Circular 23-1817
Oregon's Workers' Compensation Division announced a revised Request for Hearing Form 2839. Bulletin 285
Pennsylvania's Insurance Department provided instructions for completing the Workers' Compensation Special Schedule "W" data call. The data call is due by April 15, 2023. 2022 Special Schedule W - General Instructions