Property & Casualty News
March 2024
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
Kentucky adopted a regulation requiring a public adjuster to file for approval with the Commissioner any contract to be used to provide services to an insured. The regulation also mandates certain disclosure to be given to the insured. 806 KAR 9:400
AGENT / PRODUCER CONTINUING EDUCATION
New Hampshire's Insurance Commissioner reminds all Property and Casualty Producers of the requirement to complete a flood insurance course. This course is required even if the producer does not place flood insurance. Bulletin INS 24-006-AB
AGENT / PRODUCER LICENSING AND APPOINTMENT
Arkansas published a bulletin reminding companies of the requirement to file annual renewal appointments. The bulletin provides information about how to process renewals. Bulletin 2-2024
California published a notice reminding all licensees and applicants of the requirement to report any changes in background information within 30 days of the date the licensee or applicant learns of the change. Notice Dated March 5, 2024
AUTOMOBILE INSURANCE
Colorado adopted a rule to establish criteria for the notification of local law enforcement upon discovery that a person is attempting to obtain a certificate of title or register a stolen motor vehicle and for an insurance company or motor vehicle owner to obtain a Colorado certificate of title upon recovery of a stolen motor vehicle. 1 CCR 204-10, Rule 43
CLAIMS / CLAIMS ISSUES
Washington's Insurance Commissioner gave property insurance companies guidance regarding adjusting personal property claims and settlements due to the Gray and Oregon Road fires from 2023. Notice dated March 6, 2024
COMMERCIAL LINES INSURANCE
Vermont's Department of Financial Regulation requires all insurers issuing liability policies in Vermont to provide coverage for pollution. Limited exceptions may be allowed if authorized by the commissioner and described in the bulletin. Bulletin 111 (Revised)
CONFIDENTIALITY / PRIVACY
New Hampshire enacted legislation concerning a consumer Expectation of Privacy that applies to persons that conduct business and produce products or services targeted to residents of New Hampshire who process personal data of at least 35,000 unique consumers. It does not apply to entities or data subject to Title V of the Gramm-Leach-Bliley Act. SB 255
DISCRIMINATION
Connecticut published a bulletin reminding insurers that decisions based on analytical and computational technology (including AI Systems) must comply with all insurance laws and regulations. Domestic insurers must complete an AI Certification, due on September 1 of each year. The department states that the NAIC Principles of Artificial Intelligence is appropriate guidance. Bulletin MC-25
New Mexico added discrimination based on military status to the list of unlawful discriminatory practices. HB 302
ELECTRONIC TRANSACTIONS
South Carolina allows the posting of an insurance policy or endorsement by electronic means on the insurer's website if certain conditions are met. HB 3977
HOLDING COMPANIES
South Dakota updated its Insurance Holding Company law to include changes concerning the group capital calculation and the results of a liquidity stress test, among other items. HB 1059
LIABILITY INSURANCE
Kentucky adopted a regulation requiring that a school district must provide each certified district employee with liability insurance coverage of no less than $1 million for the protection of the employee against liability arising in the course of his or her employment. The regulation also establishes certain reporting duties for the school district. 702 KAR 3:330
Maine approved a bill clarifying liability under the Uncontrolled Hazardous Substance Site Law. The bill clarifies that each responsible party will be jointly and severally liable for all of the costs incurred by the state for the abatement, cleanup or mitigation. It also states that fees for assistance in submitting certain voluntary response action plans will be waived. HP 1328
MISCELLANEOUS
New Hampshire's Insurance Commissioner published a bulletin regarding the use of artificial intelligence systems by insurers. Bulletin INS 24-011-AB
PERSONAL LINES INSURANCE
Indiana enacted a legislation amending the probate code to require that an individual who acquires property upon an insured's death, succeeds to the rights and obligations of the insured under their property and casualty or liability policy for 60 days following the insured's death. The bill also requires disclosure be added to a transfer on death deed. HB 1034
New Hampshire adopted the Uniform Real Property Transfer on Death Act which allows individuals to transfer property to one or more beneficiaries at the transferors' death by using a transfer on death deed. HB 68
PROFESSIONAL LIABILITY INSURANCE
Alabama enacted legislation that provides civil and criminal immunity for death or damage to an embryo when providing or receiving services for in vitro fertilizations. SB 159
PROPERTY INSURANCE
New Mexico's Superintendent of Insurance reminds insurance companies that all repairs or replacement of residential property must be covered at the cost to repair or replace, without deduction for depreciation. Within 90 days all insurers must withdraw any previous forms citing a time limit for coverage for the cost to repair or replace and must file new forms excluding any time limit for coverage. Bulletin 2024-003 dated February 20, 2024
RATEMAKING
Michigan published a bulletin informing insurers that the practice of "price optimization" is not permitted in ratemaking under Michigan law. Michigan requires that property and casualty rates must not be excessive, inadequate, or unfairly discriminatory. Bulletin 2024-09-INS
REPORTS - DATA CALLS & OTHER REPORTS
Illinois published a bulletin notifying insurers that it will participate in the NAIC Property and Casualty Market Intelligence Data Call. Companies required to submit data will receive a letter from the NAIC. Company Bulletin 2024-07
Massachusetts issued a notice about the multi-state data call coordinated by the NAIC. The data call is intended to cover more than 80% of the US property insurance market. More information can be found on the NAIC website (naic.org). Notice of March 11, 2024
TITLE INSURANCE / AGENTS
Utah's Insurance Commissioner issued a bulletin advising title insurance producers that are affiliated with non-insurance businesses how the insurance department will apply insurance rules which may overlap with the Division of Real Estate rules. Bulletin 2024-2
WORKERS' COMPENSATION
California announced it now offers free, online educational courses for Workers' Compensation. Training includes courses on the Medical Treatment Utilization Schedule, a Qualified Medical Evaluator Module, and a Qualified Legal Report Writing Course. Notice dated February 28, 2024
California's Division of Workers Compensation announced that its San Jose office has moved to a new location at 224 Airport Parkway, Suite 600, San Jose, CA 95110. Notice dated February 16, 2024; Newsline No. 2024-13
Kentucky published notice reminding carriers of the annual audit and collections report. Reporting for CY 2023 will be due no later than June 30, 2024, and should be submitted via an Excel spreadsheet. Notice dated 2-12-2024
Nevada's Division of Industrial Relations, Workers' Compensation Section, published FAQs on COLAs for Permanent Total Disability (PTD) and Survivors' Benefits Claims. Notice dated February 2, 2024
Nevada's Insurance Commissioner approved NCCI's changes in workers' compensation annual voluntary insurance loss costs and assigned-risk market rates. Notice dated March 1, 2024
Texas Division of Workers' Compensation adjusted the billing methodology and reimbursement rates for certain specific services provided on or after June 1, 2024. 28 TAC s 134.209
Wyoming passed a law that authorizes consideration of specified investment earnings for determining rates under the worker's compensation program. HB 72