Property & Casualty News
May 2014
We are celebrating over 25 years of providing selected items of current interest to our clients and friends. The items contained in this newsletter are derived from bulletins, regulations and legislative activity affecting the insurance industry. Please feel free to share this newsletter with others that may be interested. Contact our office for further details about any of the items contained in the newsletter.
ADJUSTERS
Arizona enacted legislation to provide relief from registration, licensing and certification requirements. It exempts any out-of-state business or employee working temporarily in the state for the purpose of disaster recovery. HB 2046
North Carolina issued a bulletin outlining procedures a company needs to follow if a catastrophic event were to occur. Each catastrophic adjuster must have an identification badge. The bulletin included a template for the badge. Bulletin 14-B-03
AGENT / PRODUCER LICENSING AND APPOINTMENT
Georgia updated its list of applicants who don't need to submit to an examination. The word annual was deleted or amended to biennial in reference to how often a license must be renewed. Individuals holding certain professional designations will receive a reduction in the number of CE hours required. Regulatory Activity 12-2-3-.09, -.15 and -.19 dated 2/26/2014
Kentucky amended its law to add self-service storage space to the list of license types with a limited line of authority. HB 357
Utah enacted legislation to provide that a licensee, who has a license reinstated following disciplinary action, may not use a name different from the name used before the disciplinary action except under specified circumstances. SB 226
AUTOMOBILE INSURANCE
West Virginia removed its requirement that insurers notify the DMV when policyholder's motor vehicle insurance is canceled. SB 427
CERTIFICATE OF AUTHORITY
Louisiana amended its regulation to require officers, directors, and trustees of domestic regulated entities to file biographical and other applicable, relevant and appropriate information with the insurance commissioner for review and approval. LAC 37:XIII.6101 dated 12/20/2013
CLAIMS ISSUES
Missouri issued a bulletin requiring all insurers insuring real and personal property in Missouri to provide the specified contact information to the Department on an Excel spreadsheet accompanying the bulletin. Bulletin 14-01
New York issued a Circular Letter outlining the role of the New York State Disaster Coalition and the organization and operation of the Insurance Emergency Operation Center (IEOC). Among other things, it includes the process for obtaining temporary adjuster permits. Circular Letter 2014-1
Rhode Island issued a bulletin advising that the minimum fair market value for a vehicle can be derived from NADA and Kelly Blue Book. Insurers may not pay less than the NADA or Kelly Blue Book value adjusted for a vehicle that is declared a total loss. Bulletin 2014-2
ELECTRONIC FUNDS TRANSFERS
Missouri issued a bulletin announcing they will accept EFT for filing fees via SERFF effective May 1, 2014. Insurance Bulletin 14-04
ELECTRONIC TRANSACTIONS
Nebraska enacted a new law allowing proof of automobile insurance to be displayed as an electronic image on an electronic device. LB 816
South Dakota amended its statute to clarify that an electronic copy of financial responsibility is written evidence if it meets the requirements of each respective section and is issued as an official electronic document by the insurer. House Bill 1120
FILINGS: PROPERTY/CASUALTY
New York amended their rules to revise filing requirements. The change requires insurers to file, electronically, a policy form that has not been previously filed with the Department within three business days after first delivery of a policy using the form, but no later than 60 calendar days after the inception date of the policy. 11 NYCRR 16.4 Dated 11-18-2013
FINANCIAL REGULATION
Indiana issued a bulletin advising all insurers will be required to submit annual renewal fees and premium taxes to the Department electronically via OPTins effective 1/1/2015. Bulletin 206
HOLDING COMPANIES
Connecticut issued a bulletin requiring all insurers that are part of an insurance holding company system to register with the Commissioner on a Form B. The initial registration is due no later than 15 days after the company becomes subject to registration with annual filings thereafter by June 1st of each year for the previous calendar year. Bulletin FS-28
Virginia enacted new legislation to conform to NAIC's Insurance Holding Company System Regulatory Act and Insurance Holding Company System Model Regulation. Indicating no action is required. House Bill 109
MISCELLANEOUS PROPERTY/CASUALTY
Iowa amended two criminal law and procedure statutes on the protection of the victims of identity theft. Any person who owns or licenses computerized data and is subject to a breach of security requiring notification to more than 500 residents of Iowa must give written notice of the breach or give receipt of notification to the director of consumer protection division of the office of the attorney general within five business days after giving notice of the breach to any consumer. SF 2259
Maryland amended its regulation to require insurers to file a moratorium protocol with the Department before putting a temporary moratorium into effect. The moratorium must be reasonably related to the event or emergency that triggered the moratorium. COMAR 31.08.12.02 dated 10-05-2012
Maryland issued a data call requiring personal lines property and casualty insurers to provide insurance premium information related to homeowners insurance and private passenger automobile insurance to the Department. Insurers must electronically submit the information on the Department's spreadsheets no later than 7/13/2014. Bulletin 14-10
Pennsylvania issued a notice advising it has updated the list of types of insurance coverages generally and currently unavailable in the authorized market and are thus exportable. Notice of April 26, 2014
Texas issued a bulletin calling for data from property casualty insurers that write personal auto and residential property policies. The data call asks insurers to supply information for the Helpinsure.com website to provide premium price comparisons. Response is due to the Department by 5/15/2014. Bulletin B-0009-14
NOTICE TO INSUREDS
Maryland issued a bulletin announcing a change of address for the Joint Insurance Association. Insurers are required to provide the Joint Insurance Association's address when a cancellation or non-renewal notice is issued. Bulletin 14-11
ORSA: OWN RISK AND SOLVENCY ASSESSMENT
Idaho updated its regulation concerning insurance holding company systems. The Department now requires filing of Form F -- Enterprise Risk Report. IDAPA 18.01.23 Dated 10-2-2013
Kentucky enacted new legislation that requires all insurers domiciled in the state to maintain a risk management framework. ORSA summary reports are required effective 1/1/2015. HB 126
Nebraska enacted the Risk Management and Own Risk and Solvency Assessment Act. The act provides requirements for maintaining a risk management framework and completing an ORSA. The act also requires an ORSA summary report be filed with the Department. The act is effective 1/1/2015. LB 700
New York implemented an emergency regulation on enterprise risk management and own risk and solvency assessment. The regulation sets forth specific requirements of the ERM function and enterprise risk report for holding companies, domestic insurers with subsidiaries and certain stand-alone insurers. 11 NYCRR 82.1 Dated 04-11-2014
Tennessee enacted legislation requiring insurers to maintain a risk management framework and complete an Own Risk and Solvency Assessment (ORSA). The new statute requires filing an annual ORSA Summary Report. The first one is due 1/1/2015. Senate Bill 1617
PREMIUM ISSUES
Utah amended its statute to clarify that an insurer that is subject to premium taxes (under taxation of admitted insurers) is not subject to corporate franchise taxes. Senate Bill 233
PROPERTY INSURANCE
Florida changed the name of The Florida Hurricane Catastrophe Fund Finance Corporation to the State Board of Administration Finance Corporation. The data call and other applicable reporting requirements were adopted for the 2014 to 2015 contract year. Rules and forms were revised to provide for online reporting of exposure. Requires online loss reporting and addresses the implementation of the online reporting system. Other items were clarified. Regulatory Activity FAC Rule 19-8.013, .029, .030
Nebraska enacted new legislation pertaining to homeowner's and related insurance. An exclusion in a homeowner's or owner's, landlord's, and tenant's policy of insurance for loss arising out of the discharge, dispersal, release, or escape of pollutants must include an exception to the exclusion for bodily injury sustained within a building and caused by smoke, fumes, vapor, or soot produced by or originating from a heating system or ventilation system. This law applies to policies issued or delivered in Nebraska on or after January 1, 2015. LB 876
REGISTRATION OF INSURERS
Connecticut issued a bulletin providing guidance on the filing of an annual registration statement, Form B, for insurance holding company systems. Bulletin FS-28
RISK-BASED CAPITAL
Idaho amended its statute to specify that Chapter 54 applies to hospitals and professional service corporations. Chapter 54 is the Risk-Based Capital for Insurers Act. HB 358
SERFF FILINGS
Virgin Islands announced it will accept filings via SERFF. SERFF filings are not required, but are strongly encouraged. No. 017-14
SERVICE AND ADMINISTRATIVE FEES
Oklahoma issued a bulletin announcing an assessment to all member insurers. The assessment is $100. Invoices should be received the first week of May and payment is due by September 1, 2014. Bulletin PC 2014-01
SURPLUS LINES
Tennessee repeals insurance law 56-14-201 which removes the state's authority to participate in the Surplus Lines Insurance Multi-State Compliance Compact. Senate Bill 356
TITLE INSURANCE
Missouri issued a bulletin announcing the ability of title companies to file T-6A form (Missouri Title Insurer's Onsite Review Report) and T-6B form (Missouri Title Insurer's Onsite Review Sampling Methods Report) electronically. Bulletin 14-03
Oklahoma enacted new legislation establishing a statutory premium reserve for domestic title insurers. The new law also establishes rates and calculations for premium reserves. SB 2025
Texas issued a bulletin calling for title insurance companies and title insurance agents to submit data to the Department by 6/9/2014. Bulletin B-0011-14
TITLE INSURANCE AGENTS
Montana issued a memorandum reminding all foreign insurers, nonresident producer agencies and nonresident producers transacting title insurance in the state they must be licensed by the Department. All producers must be appointed by insurers. Premium taxes must be paid on title policies written in the state. Title insurers doing business in the state must file rates. Memorandum dated February 27, 2014
New York enacted new laws to allow the Superintendent to issue licenses to individuals and entities to act as title insurance agents for an authorized title insurance corporation. SB 6357
TRAVEL INSURANCE
Arizona enacted new legislation to outline conditions under which a travel retailer may offer and issue travel insurance under a limited lines travel insurance producer license. HB 2047
Maryland enacted new legislation to allow for a limited lines license for travel insurance producers. SB 79
Oklahoma amended and enacted legislation concerning travel insurance. The new law allows for travel retailers to offer and disseminate travel insurance under a limited lines travel insurance producer license. SB 2018
Utah enacted legislation that allows for a limited lines travel insurance producer license. The bill also allows for the licensing of a travel retailer to sell travel insurance. SB 230
UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE
Mississippi amended their statute to require insurers, during the sale or issuance of an automobile liability policy, to inform the named insured or applicant, on a form approved by the Department, of the benefits of and reasons for electing to purchase uninsured motorist coverage. SB 2733
WORKERS' COMPENSATION
Texas issued a bulletin that provides filing instructions for carriers writing workers' compensation insurance and employer's liability insurance. Policies written with an effective date on or after 6/1/2014 must make a rate filing referencing NCCI's miscellaneous values filing. Bulletin B-0010-14
EARLY BIRD DEADLINE IS NEAR
June 6, 2014
Have You Registered for our
Advertising Compliance Seminar?
A Practical Approach to Advertising Compliance
for the Insurance Industry
(includes sessions on Internet Advertising and Social Media Issues)
August 11 – 12, 2014
Kansas City, Missouri
Click here for complete details and registration information from our website
Any questions can be answered by
Jerry L. Wickersham, JD, AIRC
816.391.2743
Jerry.Wickersham@FirstConsulting.com
A Personalized Approach to Research
Identifying applicable laws and regulations to complex insurance regulatory and compliance issues can be difficult. Determining their applicability to your specific company, its products, and needs is often even more complex.
First Consulting recognizes these difficulties and uses a wealth of knowledge and experience that its associates possess to provide insurance research tailored to your company’s unique needs. You specify the scope of the research, the states to be included, the lines of business and all other parameters. We will work with you to determine the format in which results will be presented ensuring that the people that need to use the information can do so as easily as possible. We can even help update and maintain the research, if that is desired.
Click here for more information about our custom research services.
To discuss your research needs and find out how First Consulting can help, please contact me or any First Consulting associate.
John B. Palmer, III, J.D., CLU, ChFC, FLMI, AIRC, ACS
816.391.2744
John.Palmer@FirstConsulting.com
ORSA Consulting – a new Comprehensive ERM Service to create or enhance your Compliance Program
First Consulting & Administration, Inc. is now offering a full range of consulting services to create or enhance your ERM/ORSA Compliance Program. The services are designed to be tailored to your company’s requirements. You can select from any or all of these services to give your Company just the right amount of assistance with its ORSA compliance strategy.
- Enhance Your Existing ERM Program with the ERM Tool Kit
- ERM/ORSA Program Assessment
- ERM/ORSA Training & Educational Services
- Comprehensive Consulting Services to create or enhance your ERM/ORSA Program
I recently published an interesting article entitled ORSA: Three Ways to Up Your Game. The article is available here: http://www.firstconsulting.com/news-room/articles
Please feel free to contact me to discuss any of these services.
Carol Stern
816.391.2746
Carol.Stern@FirstConsulting.com