Property & Casualty News

May 2018

Welcome to our latest newsletter!  As a thought leader in the Insurance Industry for over 49 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

Alabama amended its law regarding producer and service representative continuing education requirements. The changes are effective January 1, 2019.     27-8A-1 and 27-8A-2

AGENT / PRODUCER LICENSING AND APPOINTMENT

Arkansas issued a bulletin that relates to producer appointment renewals.  Renewals shall be filed annually and remain in effect until terminated.  Agency and producer appointments are no longer shared appointments.     Bulletin 5-2018

California issued a notice advising that fees for fingerprint processing have increased.  Fees were formerly $58.30, but are $59.00 after May 1, 2018.     Licensing Notice dated April 2, 2018

Florida amended several regulations regarding agent licensing, renewal and education requirements for agents who are members of the military or military veterans effective July 1, 2018.     HB 29; 497.453; 497.466; 517.12; 626.171; 626.732; 626.7851; 626.8311; 626.927

Indiana amended its law which provides that when an individual who applies for an insurance producer license in Indiana was previously licensed for the same lines of authority in another state, the individual is not required to complete any prelicensing education or examination.     27-1-15.6-9

Michigan issued a notice providing warning to insurance producers engaging in insurance "sliding", or failure to properly disclose information during an insurance transaction.  Producers who engage in "sliding" are in violation and will be subject to penalties.     Bulletin No. 2018-10-INS

Nebraska amended its law related to producer licensing education requirements.     Legislative Bill 743, 44-4053, 44-4056

New Mexico approved a new regulation regarding appointments of insurance producers, continuation of appointments, and termination of producer contracts.     13.4.2.29 NMAC

New Mexico enacted legislation with regard to obtaining a temporary insurance producer license.  The regulation provides conditions and limitations pertaining to such a license.     13.4.2.25 NMAC

Oklahoma published a notice that beginning May 1, 2018, Prometric will administer the examinations for insurance licenses.  Oklahoma is not changing exams or exam content outlines.     Special Notice 04 06 18 New Exam Vendor

Tennessee amended requirements for insurance producer license examinations.  There are now specified wait times before reapplying to retake the examination if an individual previously failed it.     56-6-105

Texas has changed the expiration date for agents/adjusters' license to the last day of his/her birth month.  This will not affect continuing education credits or other requirements.     License Notice dated 04/12/18

AUTOMOBILE INSURANCE

Arkansas enacted an emergency rule that provides insurance and bond requirements for tire transporters.  The rule provides for the administration of the new Tire Accountability Program (TAP).     Emergency Dept. Environ. Reg. 36

Delaware issued a reminder that new coverage limits must be included on newly written or renewed automobile insurance policies.  Brokers and agents are no longer required to have insureds complete a Regulation 603 Form A when the insured is renewing a policy that is written with limits in excess of the minimum limits set forth in HB 114.     Auto Bulletin 29

Michigan has increased the assessment to be paid by automobile insurance companies for the period of July 1, 2018 to June 31, 2019.  The assessment was previously $170, and is now $192 per insured vehicle.     Notice dated March 29, 2018

New York is asking that insurers encourage policyholders to use only commercial GPS, if a GPS is in use at all. Insurers are encouraged to develop and file programs and rules for commercial GPS insurance premium discounts.     Circular Letter No. 2 (2018)

Oregon published a bulletin to auto insurers that have rating plans which rate using the sex or gender of the insured.  Auto insurers are required to accommodate consumers who designate their sex as not-specified.  Rating plans, rating systems, and applications that do not allow applicants who designate their sex or gender as not-specified to obtain coverage from an insurer will be considered unfairly discriminatory on the basis of sex.     Bulletin DFR 2018-3

Oregon sent an email on 04/18/18 to remind insurers writing personal and commercial motor vehicle insurance that Oregon laws do not allow exclusions for criminal or illegal acts in a motor vehicle policy used to meet the financial responsibility requirements for Bodily Injury Liability (BI), Property Damage Liability (PD), Automobile Personal Injury Protection (APIP), or Uninsured Motorists/Underinsured Motorists coverage (UM/UIM).     Email Special Notice dated 04/18/18

West Virginia created the "Guaranteed Asset Protection Waiver Act" to provide a framework within which guaranteed asset protection waivers are defined and may be offered within this state.     33-4-22

CAPTIVES

Nevada requires captive insurers that issue short-duration insurance contracts to submit annual audit reports in compliance with FASB ASU 2015-09.     Bulletin 18-001

CLAIMS / CLAIMS ISSUES

Alabama issued an emergency amended rule relating to crime victim compensation. It removes language permitting payment from the Alabama Crime Victims Compensation Commission to claimants in installments.  Eligible expenses will be paid directly to service providers.  Claimants who paid out-of-pocket may be fully reimbursed.     Emergency 262-X-4-.04

Idaho amended its regulation relating to civil action regarding claims for damages.     SB 1277; 12-120; 7-1503

COMMERCIAL LINES INSURANCE

West Virginia added rate filing exemptions for specified commercial lines insurance coverages.     33-20-4

SUMMER OVERLOAD – ARE YOU READY?
The summer months can often be difficult for managers trying to balance letting staff take time off while still getting all the work completed.  Click here to learn how First Consulting can help.

CORPORATE GOVERNANCE

Wisconsin enacted legislation regarding corporate governance annual disclosure listing disclosure requirements, confidentiality provisions, and the initial filing deadline.     610.80

IMPORTANT CGAD ALERT!
Is your state requiring your Corporate Governance Annual Disclosure (CGAD) report for the first time in 2018? Click here to learn more!

CYBERSECURITY

Michigan amended provisions regarding cybersecurity incidents and cybersecurity plans.     House Bill 4973; 15.232; 15.243

Oregon amended its law to revise the definition of personal information to include information or combinations of information that a person reasonably knows or should know would permit access to a consumer’s financial account, to provide notice requirements upon a breach of security, and to provide technical safeguards when disposing of personal information.     Senate Bill 1551; 646A.602; 646A.604; 646A.606; 646A.608; 646A.610; 646A.622

DISASTER / CATASTROPHIC EVENT

Montana issued a state of emergency Executive Order for certain areas following widespread flooding.  The order was issued April 18, 2018 and is retroactive to April 12, 2018.     Executive Order No. 11-2018

Puerto Rico issued a Ruling Letter addressing the suspension of the filing requirement for amendments to certain endorsement forms due to the effects of Hurricane Maria.  The Ruling Letter refers to the interruption of business coverage in commercial property policies and coastal condominium insurance policies.     Ruling Letter No. CN-2018-239-D

Puerto Rico issued a Ruling Letter to address concerns and questions regarding the accounting treatment of the catastrophe reserve following hurricanes Irma and Maria and the release of catastrophe reserve funds. The Letter provides clarification and guidelines for accounting treatment, filing of the annual report, and the release of the catastrophe loss insurance reserve.     Ruling Letter Number: CN-2018-240-D

Texas has extended the deadline for Texas Windstorm Insurance Association claimants to demand appraisal of a claim for damages caused by Hurricane Harvey.     Bulletin B-0007-18

FRAUD / ANTI-FRAUD

Delaware issued a bulletin clarifying requirements for mandatory fraud reporting.  Included are instructions for submitting NAIC fraud reporting forms.     Domestic Foreign Insurers Bulletin 15 (Revised)

Florida has implemented changes to the insurer anti-fraud plan and mandatory reporting requirements.  Specified information that must be included in reports of fraud and suspicious activity is provided.     FAC Rule 69D-2.002

Iowa amended its law relating to the receipt of pecuniary damages by insurers as victims of insurance fraud.  It clarifies the definitions of "pecuniary damages" and "victim" to provide that an insurer paying a victim’s insurance claim is not a victim and does not have a right of subrogation.  However an insurer may be a victim if insurance fraud has been perpetrated against the insurer.     House File 2238; Section 910.1

Virginia amended its Consumer Protection Act regarding certain fraud crimes.     HB 304; 59.1-200

INDUCEMENTS

Arizona amended its regulation regarding prohibited inducements by increasing the maximum aggregate value to $100 (had been $25).     HB 2098; 20-452

ADVERTISING COMPLIANCE EVENT and SOCIAL MEDIA MINI-BOOTCAMP
Has your team attended the premier advertising compliance conference? This seminar will share advertising and social media compliance expertise and insight to help you maintain regulatory and ethical compliance. Click here to learn more!

LIABILITY INSURANCE

South Dakota has established guidance regarding liability policies written with defense within policy limits.  These limits will only be approved in policies with a minimum limit of $1 million per occurrence for certain types of policies. Defense within limits is permitted without this limitation for specified types of policies.     Bulletin 18-01

Virginia amended definitions and supplemental extended reporting requirements.  New provisions concerning claims-made liability insurance policies were added.  The new rules pertain to required notices and standards for basic extended reporting periods.     14 VAC 5-335-10 +

MARKET CONDUCT

Colorado amended its regulation regarding independent market conduct examiners.  Changes include appeal processes for fees and expenses.     3 CCR 702 Reg. 6-3-1

MISCELLANEOUS

Idaho amended its regulation regarding dividends and other distributions to shareholders.     HB 454; 41-3812

Oklahoma issued a bulletin concerning the state's Market Assistance Program (OK-MAP).  It allows the program to collect an assessment from all insurers authorized to write property and casualty insurance in the state.  OK-MAP members are required to participate in all assessments and writings of the program. The assessment is due on September 1, 2018.     Bulletin No. PC 2018-01

INSURTECH VS. COMPLIANCE – COLLABORATION IS THE KEY
The talk surrounding new InsurTech possibilities has moved beyond the idea and concept stage and into reality. This poses many new and interesting challenges, especially for compliance. Is your Compliance department ready? Click here to learn how we can help.

PREMIUM TAX

Kentucky issued a bulletin to provide the current position of the Kentucky Department of Insurance regarding local government premium tax.     Bulletin 2018-01

Oklahoma enacted legislation regarding taxable income of an insurance company and imposed limits on deductions.     House Bill 1011; 68 s 2358

PUBLIC RECORDS

Idaho amended its regulation regarding public records exempt from disclosure.     SB 1274; 74-106

REPORTS - ANNUAL / QUARTERLY STATEMENT

Indiana companies required to file an annual statement with the department shall submit the company's statement on the Annual Statement Blank prepared in accordance with NAIC Annual Statement Instructions, and following practices and procedures prescribed by the Accounting Practices and Procedures Manual.     27-1-3-13

SERVICE CONTRACTS / WARRANTY INSURANCE

New Mexico issued a bulletin to clarify requirements for use of reimbursement insurance policies by service contract providers.  The bulletin provides direction for service contract providers that wish to satisfy their financial security requirements exclusively by means of a reimbursement insurance policy.     Bulletin 2018-003

CORPORATE CHANGE?  SAVE YOUR TIME!
Training staff to handle UCAA filings may be a one-time event and the experience gained may not be used again for several years, if at all. Take advantage of First Consulting’s experienced staff as you plan for these events. Click here to learn more.

UNCLAIMED PROPERTY

Indiana amended its Unclaimed Property Act so that a time deposit that is automatically renewable is considered matured upon the expiration of its initial period except under certain circumstances.     Senate Bill 376; 32-34-1-20

Virginia amended its regulation regarding abandoned property, financial organizations, bank deposits and other funds.     55-210.3:01

WORKERS' COMPENSATION

California Division of Workers' Compensation posted an order that revised the Official Medical Fee Schedule of Hospital Outpatient Departments and Ambulatory Surgical Centers.  The changes conform to the quarterly changes in the Medicare payment system.     DWC Notice 2018-29

Idaho has implemented a midyear rate decrease for Workers' Compensation insurance rates.  Rates decreased 3.4 percent for policies issued or renewed after May 31, 2018.  This decrease follows a decrease of 5.8 percent at the beginning of 2018.     WC Notice of April 19, 2018

Indiana issued a notice that the new protocol for submitting Workers' Compensation "C" claim settlement documents has not yet been finalized, but will be implemented.  Transition to the new version will be effective January 1, 2019.     Notice of April 17, 2018

New York amended the Workers' Compensation and Employers Liability Manual to add rules concerning conditional renewal for carriers under common control.  The amendment pertains to insurance carriers that issue a conditional renewal of a policy that supersedes a policy previously issued by another insurance carrier under common control and results in an increased premium of more than ten percent.     R.C. 2462

North Carolina approved revisions to Part 6-Coding Values of the North Carolina Workers' Compensation Statistical Plan Manual. These revisions are applicable to the reporting of statistical data for all new and renewal polices with an effective date on or after March 16, 2018.     WC Circular Letter C-18-9

Pennsylvania has determined that insurers writing Workers' Compensation insurance in the Commonwealth will not be required to submit any contributions for the Fund in 2018.     Notice 2018-03

Tennessee repealed a requirement so that Workers' Compensation insurers do not have to have a claims office within the state, nor do they have to contract with a claims adjuster located in Tennessee.     Senate Bill 1615; 50-6-413 Repealed

Texas published a memo on April 4, 2018 regarding adopted Division of Workers' Compensation rules and new DWC Forms-81, 82, 83, 84, and 85.  The newly adopted rules include, among other subjects, amended employer requirements for notifying the division of termination coverage, and rules concerning construction workers, contractors and subcontractors. Additional information and the forms are available on the division website at http://www.tdi.texas.gov/forms/form20.html.     Memo dated April 4, 2018

SUMMER OVERLOAD – THE COMPLIANCE HELP YOU NEED

The summer months can often be difficult for managers trying to balance letting staff take time off while still getting all the work completed. Have you figured out how you are going to accomplish this?

First Consulting can help!

Our experienced team of insurance experts can step in at any stage of your project and bring it to a speedy finish:

Let First Consulting help keep your projects on target.  Contact me today to find out more and get a no obligation quote!

Sean Cox
816.391.2737
Sean.Cox@FirstConsulting.com

INSURTECH VS. COMPLIANCE – COLLABORATION IS THE KEY

The talk surrounding new InsurTech possibilities has moved beyond the idea and concept stage and into reality. This poses many new and interesting challenges, especially for compliance. Is your Compliance department ready?

First Consulting has experience working with both InsurTech startups as well as innovation areas of traditional insurance carriers, to help them collaborate internally and with State Insurance Departments, to bring these exciting new products to market.

Contact me today to discuss how our services can help you with the latest innovations impacting your compliance department.

Sean Cox
816.391.2737
Sean.Cox@FirstConsulting.com

CERTIFICATE OF AUTHORITY SERVICES

Is there a change on the horizon for your Company?

If a corporate change (e.g., control, merger, name), or an expansion into additional jurisdictions, or product lines is in your Company's future, let First Consulting assist with the Uniform Certificate of Authority Application (UCAA) process.

Our experienced staff can assist you with this process. Don’t waste time training your staff on this process when it may not be needed again for years, if at all.

Click here for information on how First Consulting can assist you with UCAA filings.

John Palmer
816.391.2744
John.Palmer@FirstConsulting.com