Property & Casualty News

November 2017

Welcome to our latest newsletter!  As a thought leader in the Insurance Industry for over 48 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!


ADVERTISING / SALES & MARKETING

California amended its Insurance Code section 1725.5, which requires insurance licensees to prominently feature their license numbers on business cards, written price quotations and print advertisements distributed exclusively in the state.  The section now requires the word "insurance" to be featured in type at least as large as the smallest telephone number or 12-point type, whichever is larger.     Ins s 1725.5


AGENT / PRODUCER LICENSING AND APPOINTMENT

Maine issued a bulletin that provides guidance for producers regarding what activities may be conducted under the state's amended rebating statutes.     Bulletin 426

New Jersey readopted its law regarding insurance-related activities that require licensure as an insurance producer.     NJAC 11:17A-2.1


AUTOMOBILE INSURANCE

Alaska issued a bulletin regarding new requirements for UM/UIM coverages. In addition, the bulletin specifies that insurers writing automobile insurance must complete a short survey available online.  Survey responses are due no later than December 15, 2017.     Bulletin B 17-08

Colorado amended its regulation relating to the summary disclosure requirements and forms for private passenger automobile insurance.     3 CCR 702-5

Louisiana adopted amendments to regulations regarding insurance coverage for driving schools, including testing sites and instructional vehicles.     LAC 55:III.143 +


CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES

California clarified its Insurance Code section 396 regarding persons to receive notice of lapse, termination, expiration, nonrenewal or cancellation of a policy for nonpayment.     Ins s 396

Maryland amended its regulation relating to cancellation of a binder or policy.     31.08.15.06


CAPTIVES

Tennessee amended its regulations regarding financial and reporting requirements the Commissioner deems necessary for the regulation of captive insurance companies. The changes are effective December 21, 2017.     0780-1-41.01+

Tennessee published a bulletin to provide guidance to its captive insurance industry in light of Accounting Standards Update 2015-09 issued by the Financial Accounting Standards Board (FASB). The FASB update addresses disclosures about short-duration contracts as defined in Topic 944, Financial Service - Insurance.     Bulletin 17-01     Bulletin 17-01


CERTIFICATE OF AUTHORITY FILINGS

California amended its insurance code to address redomestication of insurers to the state, to require admitted insurers to retain all financial condition records for the current year plus 5 previous years, and to add a section requiring insertion of a license number (with specified text size) into any business cards, written price quotations and print advertisements distributed exclusively in the state for insurance products, among other changes.     Assembly Bill 1696


SPECIALIZED LICENSING ASSISTANCE FROM FIRST CONSULTING
Did you know that in addition to TPA licensing, we also assist with licensing other specialized market operations such as Limited Health Service Organizations and Warranty Service Providers to expand into new jurisdictions?  Click here to learn more.


CONFIDENTIALITY / PRIVACY

Washington adopted provisions specifying that licensees may use the federal Model Privacy Form under specified circumstances.      284-04-910


CREDIT FOR REINSURANCE

South Dakota amended its regulations addressing credit for reinsurance, adding sections on trusts, investment companies, own risk and solvency assessments, letters of credit, and reinsurance agreements, among other topics.     20:06:31


DISASTER / CATASTROPHIC EVENT

California issued a notice to all property insurance companies regarding recent wildfires.  Insurers are asked to implement emergency voluntary claims reforms to help victims with their recovery.     Notice dated October 13, 2017

New York issued a circular letter to all domiciled insurers that issue insurance policies that may be impacted by Hurricanes Maria and Irma in Puerto Rico, the U.S. Virgin Islands and other affected areas. Among other things, carriers should work towards fair and speedy resolutions of claims and recognize that affected policyholders may be delayed in paying premiums.     Circular Letter No. 17 (2017)

Puerto Rico issued a letter to all property and casualty insurers authorized to do business in Puerto Rico, and all public and independent adjusters, regarding prompt and fair adjustment of commercial policy claims arising from Hurricane Maria.     CN-2017-220-D

Puerto Rico issued a notice advising that insurers may not deny a claim of an insured who has been relocated from his or her home or property by state or federal authorities or has been forced to temporarily leave his or her home or property under reasonable circumstances, which otherwise would have been covered, due to the fact that the property was unoccupied or vacant.     CN-2017-225-D


FEE SCHEDULES

California enacted legislation amending the Insurance Code to reflect the fees currently charged by the Department of Insurance. Updated fees include (among others): registration filing fee; purchasing group registration filing fee; application for amendment of certificate of authority filing fee; certificate of compliance filing fee; application for broker certificate fee; agent licensing fees; broker licensing fees; appointment fee; adjuster licensing fee and annual statement filing fees.     Assembly Bill 1699


FILING REQUIREMENTS / PROCEDURES

Alaska modified rate filing requirements for specified types of property and casualty rating plans.     Order R17-07

Washington posted a SERFF message stating that it would begin using the new functionality allowing it to flag filings for deletion. Users will be given access to download copies of their filings in an easier fashion, so they can maintain copies of the files that are flagged. The OIC will start with the oldest records, but this purge will not affect users who have a data hoster or use Oracle Insurance Compliance Tracker.     SERFF Message 10-09-2017


PRODUCT UPDATES AND INNOVATIONS
Planning to update your coverages or implement a new program in 2018?
Click here to find out how our experts can help.


FRAUD / ANTI-FRAUD

Pennsylvania issued a notice concerning arson and insurance fraud reporting.     Notice 2017-10


HOLDING COMPANIES

Delaware enacted legislation to track the National Association of Insurance Commissioner's Model Holding Company Act with respect to the Commissioner's power to examine insurers and have access to books and records of insurers in order to ensure compliance with the Holding Company Act.     House Bill 81


LIABILITY INSURANCE

Rhode Island amended its laws regarding liquor liability insurance.  HB 5623


ORSA: OWN RISK AND SOLVENCY ASSESSMENT

South Dakota amended its regulations to adopt the Own Risk Solvency Assessment Guidance Manual, 2014 edition, from the National Association of Insurance Commissioners.     20:06:09


PERSONAL LINES INSURANCE

Maryland amended provisions concerning homeowner's insurance coverage.     31.08.14.03


OUR RESEARCH AND SURVEYS CAN HELP YOUR INNOVATION
Exciting innovations are everywhere now in the insurance industry.
But you need to know how these innovations will be received by the state Insurance Departments. 
Click here to find out how we can help.


PREMIUM ISSUES

Maryland issued a bulletin relating to payment of insurance premiums with a credit card.  Payments are allowed so long as they are accepted from all insureds, discounts are not given to other forms of payment, no collateral is required, and insureds who pay with a credit card are not given different rates from those with similar risk characteristics.     Bulletin 17-10


REPORTS - ANNUAL / QUARTERLY STATEMENT

Montana adopted a regulation regarding requirements for filing annual reports online.     Regulation 44.5.301, 44.2.302


SURPLUS LINES

Maryland amended regulations regarding reporting requirements for surplus lines brokers.  Semi-annual reports are only required for brokers that transacted business during the applicable half calendar year.     COMAR 31.03.06.05

Rhode Island repealed specified laws concerning the surplus lines insurance multi-state compliance compact, effective October 4, 2017.     SB 1003


TITLE INSURANCE / AGENTS

New York adopted a new law regarding title insurance, which, among other things, prohibits rates from being excessive or unfairly discriminatory, provides guidance on policy form filings, rates, commissions and rebates.     11 NYCRR 228.0 - 228.6

Vermont issued a message regarding changes to its Title Insurance filing requirements.  Vermont will not allow policies for title insurance to include commissions paid to Title Agents in excess of 70% of the total policy premium.     State Message 11032017


SPECIALIZED LICENSING ASSISTANCE FROM FIRST CONSULTING

You might know that First Consulting & Administration, Inc. assists many insurers and other types of organizations in obtaining Certificates of Authority and also in obtaining and renewing Third Party Administrator (TPA) licensing.

But did you know that we also assist with licensing other specialized market operations such as Limited Health Service Organizations and Warranty Service Providers to expand into new jurisdictions?

We are experienced with each licensing process and with the various state-specific requirements. We’ll advise what materials are needed for each filing, assemble and submit the filings to each jurisdiction, and follow up to secure approval.  Click here to learn more.

Contact me for a no obligation proposal and cost estimate.

John Palmer
816.391.2744
John.Palmer@FirstConsulting.com


HELP WITH POLICY CHANGES

If you're planning to update your coverages or implement a new program in 2018, our experts can help in all lines of business in one or more ways:

·   Using your specifications, draft policy forms or endorsements
·   Compare your forms or those of competitors or rating bureaus
·   Participate in the development of a new product with your team
·   Incorporate necessary state-specific requirements
·   Provide for state-specific changes marketing wants put into your products
·   Review the forms you drafted to provide an added comfort level

Once the forms are drafted we can also file the entire package on our SERFF account or yours.

Please give me a call so we can discuss your strategy to see how we can help your product development efforts.

Joe Bieniek
816.512.2832
Joe.Bieniek@FirstConsulting.com


HELP WITH RESEARCH AND DOI SURVEYS

There are many new players in the marketplace, including both disruptors and innovators. There are many things that are consistent though as regulators want us to issue policies correctly and respond when a claim is presented. There are two items you may need help with:

1.   Knowing insurance related requirements
2.   Asking an insurance department for help

First Consulting can help with both items with our research and survey service. Besides researching state-specific items we can contact a single regulator or perform a nationwide survey of regulator positions, all without revealing your identity.

Please click here for a brief overview of our custom research or give me a call. I’d like to help.

Joe Bieniek
816.512.2832
Joe.Bieniek@FirstConsulting.com