Property & Casualty News
May 2021
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!
AUTOMOBILE INSURANCE
Arizona passed a law that requires a peer-to-peer car sharing program to assume certain minimum liability. The owner and driver of the shared vehicle must have insurance policies providing minimum coverage during the car sharing period. Peer-to-peer car sharing is the business of connecting owners with drivers for financial consideration although it does not include rental vehicles. SB 1720
Arkansas amended its law regarding autonomous vehicles to require proof of compliance with certain liability coverage requirements. The law also determines how liability is determined for an accident involving an autonomous or fully autonomous vehicle, and sets forth other requirements. HB 1562
Colorado adopted an emergency regulation regarding restrictions on coverage for use of a personal automobile for food delivery during pendency of the COVID-19 emergency. This regulation applies to additional unnamed drivers on a restaurant commercial automobile policy for food delivery. 3 CCR 702-5, Regulation 21-E-05
Kansas created the "Peer-to-Peer Vehicle Sharing Program Act" which provides insurance, liability, record keeping and consumer protection requirements for peer-to-peer vehicle sharing. HB 2379
CAPTIVES
Alabama amended its Captive Insurance Company law and revised the requirements for an Alabama Coastal Captive Insurance Company. SB 23
CREDIT FOR REINSURANCE
Alabama amended its reinsurance law making it similar to the Credit for Reinsurance Model Law developed by the NAIC. HB 32
Oklahoma amended its reinsurance law to authorize credit for reinsurance when the reinsurance is ceded to assuming insurers meeting certain requirements in a reciprocal jurisdiction. SB 122
Washington passed an update to its law dealing with credit for reinsurance. It enacted the NAIC amendments to the Credit for Reinsurance Model Law relating to reciprocal jurisdictions. SB 5048
CYBERSECURITY
Illinois issued a bulletin setting forth Microsoft Exchange vulnerabilities that the Department has been made aware of. All regulated entities are requested to immediately assess the risk to their systems and consumers and take steps necessary to address vulnerabilities and customer impact. This includes patching or disconnecting vulnerable servers and using the tools provided by Microsoft. Bulletin 2021-07
Iowa enacted the "Insurance Data Security Act." This law deals with standards for data security as well as investigations and notifications of cybersecurity events. HF 719
New York Department of Financial Services issued a Cyber Fraud Alert follow-up regarding an ongoing cybercrime campaign to steal drivers' license numbers from automobile insurers. DFS gives direction on how to stop the theft and to remind carriers that Cybersecurity Events must be reported within 72 hours. Industry Letter of April 19, 2021
DISCRIMINATION
Arkansas passed a new law that prohibits discrimination against individuals in need of organ transplants on the basis of a disability. This includes declination of insurance coverage based solely on an individual's mental or physical disability. SB 155
Colorado passed a law prohibiting discrimination against a potential organ transplant recipient based solely on the person's disability. HB 1169
FILING REQUIREMENTS / PROCEDURES
Michigan Bulletin 2021-22-INS provides guidance related to the timing of personal auto rate and rule filings. The manual or plan must remain on file for a waiting period of 90 days before it becomes effective, and the period cannot be extended by the Director. Bulletin 2021-22-INS
Rhode Island issued a Bulletin setting forth expectations related to private passenger auto form and rate filings. While carriers may continue to offer premium credits or refunds due to COVID-19, the Division is now asking each carrier to submit a rate filing no later than July 30, 2021 that considers changing consumer driving patterns related to COVID-19. Bulletin 2021-3
FLOOD INSURANCE / NFIP
Alabama passed a law that exempts flood insurance from the rate filing and approval requirement. SB 69
Iowa enacted a new law known as the Private Primary Residential Flood Insurance Model Act. Its purpose is to encourage a robust private primary residential flood insurance market, to provide consumer choice, and to provide alternatives to the existing national flood insurance program. HF 583
GENERAL LIABILITY INSURANCE
Arkansas passed a law protecting businesses from civil liability for damages or injuries caused by or resulting from exposure to COVID-19 on the business premises. HB 1487
PERSONAL LINES INSURANCE
Alabama amended its vehicle law to add a definition of electric bicycle, classes of electric bicycles and rules for the operation of these bicycles. HB 99
Illinois issued a bulletin to remind carriers writing Homeowners Insurance that for any loss by fire or explosion exceeding $25,000 they must obtain a Certificate regarding payment of taxes and expenses before paying the claim. A Certificate example is attached to the bulletin although companies may use their own form as long as it contains the information requested in the example. Bulletin 2021-04
WORKERS' COMPENSATION
California Workers' Compensation Insurance Rating Bureau announced that it submitted a pure premium rate filing to the Department of Insurance with a proposed effective date of September 1, 2021. The advisory pure premiums are based on insurer losses incurred during accident year 2020 and prior accident years valued as of December 31, 2020. An insurer is not required to use either the proposed or approved pure premium rates in establishing the rates it will charge. WCIRB Bulletin 2021-07
Massachusetts Workers' Compensation Insurance Organization updated its injury description table to add a new nature of injury code 38 for adverse reaction to a vaccination or inoculation. WCRIBMA Circular Letter 2385
Massachusetts Workers' Compensation Rating and Inspection Bureau issued a Circular Letter with a reminder from the Insurance Department regarding the timely filing of rates. The bulletin sets forth key filing deadlines for extending or altering workers' compensation rate deviation filings that are currently in effect. WCRIBMA Circular Letter 2386
Mississippi's Workers' Compensation Medical Fee Schedule has been revised to address how telemedicine services must be provided. Only certain CRT codes in the current Medical Fee Schedule can be reimbursed as telemedicine. Only a physician holding a valid Mississippi license is allowed to practice telemedicine in Mississippi. Regulation R20-2-12.19
Tennessee revised its law to authorize the workers' compensation court to award attorneys' fees and costs for injuries when an employer wrongfully denies a claim. It also applies when an employer wrongfully fails to timely initiate any workers' compensation benefits to which an employee is entitled. It applies to injuries occurring from July 1, 2021 to June 30, 2023. SB 1576
Texas notified carriers writing workers' compensation and employers' liability insurance in Texas that the Department of Insurance accepted the NCCI advisory loss cost filing with an effective date of July 1, 2021. Carriers should use their own independent insurer-specific classification or NCCI loss costs. Rate filings are required. Commissioner's Bulletin #B-0011-21
Washington enacted legislation requiring an insurance company that pays a lump sum or installment payment that exceeds $500 to a claimant for workers' compensation to verify whether the claimant owes past due child support. This must be verified within 10 days after opening a claim. HB 1416