Property & Casualty News

November 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!


ACTUARIAL

Virgin Islands amended its code enacting the Property and Casualty Actuarial Opinion Act to meet the accreditation standards established by the National Association of Insurance Commissioners in its model laws.     HB 234; T.22 s 1054-1058


AGENT / PRODUCER COMPENSATION

Colorado adopted regulations relating to producer fees. The rules clarify what fees may be charged and are intended to prohibit producers from charging fees that are also compensated through commissions. The changes are effective December 1, 2018.     3 CCR 702 Reg. 1-2-9


AUTOMOBILE INSURANCE

California issued an opinion regarding unfair claim practices, based on an inquiry from the California Autobody Association. Unfair claim settlement practices include use of misleading crash parts descriptions, requiring repair shops to use vendors that are insurer-specified, and consumer price discrimination.     Opinion dated October 8, 2018

Connecticut issued a bulletin regarding the automobile ID card requirement.  The bulletin addresses minimum mandatory insurance coverage, electronic ID cards, insurance limit requirements, and ID card notification language.     Bulletin PC-87

Delaware issued a bulletin regarding "recovery cost" reimbursement to towing companies. It reminds insurers that they are required to cover the cost of removing the at-fault and not-at-fault vehicles after an accident when the policyholder is the at-fault driver. Additional responsibilities of the insurer for the at-fault driver are included.     Auto Bulletin 30

Louisiana adopted regulations relating to off-road vehicles, specifically utility terrain vehicles and golf carts. Provisions include registration, safety, and driver eligibility requirements, titling, and roadway operation.     LAC 55:III.2101


CERTIFICATE OF AUTHORITY FILINGS

New Mexico issued a bulletin that withdraws and replaces Bulletin 2017-011. To address concerns presented by insurers and the Office of Superintendent of Insurance (OSI) staff relating to the scope of previously and prospectively issued Certificates of Authority (COA), the National Association of Insurance Commissioners, in coordination with OSI, will modify the OSI-specific State Based System architecture to accommodate COA designations that identify the lines and types of authority that an insurer may transact.     Bulletin 2018-015


CLAIMS / CLAIMS ISSUES

New Mexico issued a bulletin regarding catastrophe claim processing. To help insurers expedite catastrophe claim settlements, there are procedures that an insurer can follow to expand adjuster services. In response to the increased frequency of natural disasters, the Office of Superintendent of Insurance adopted new protocols and procedures for implementation of certain laws.     Bulletin 2018-016


CONFIDENTIALITY / PRIVACY

Connecticut amended regulations relating to the required annual privacy notice provided to consumers. The change adds language that exempts the annual disclosure requirement in certain situations.  The change was effective October 5, 2018.     38a-8-108

Nevada adopted regulations requiring licensees to implement programs of security for customer information. It also exempts licensees from providing annual notices of privacy policies and practices to customers under certain circumstances.     NAC 679B, 679B.800, 679B.844


CORPORATE GOVERNANCE

Pennsylvania amended Title 40 of the Pennsylvania Consolidated Statutes providing for corporate governance annual disclosure; and, in reserve liabilities, further providing requirements for small company exemption.     SB 1205; 40-3901 thru 40-3911, 40-7142

Washington adopted rules setting forth the procedures and required contents for filing the corporate governance annual disclosure.     284-07-700 thru 284-07-740


DISASTER / CATASTROPHIC EVENT

Georgia issued a directive that encourages continued leniency by insurers regarding premium payments by Georgia insureds in the wake of Hurricane Michael. Insurers are asked to ensure that policyholders have sufficient time to address their insurance issues.     Directive 18-EX-4


FILINGS: PROPERTY / CASUALTY

Idaho issued a message in SERFF stating that the Department is no longer requiring the filing of "A" rates. The Department reserves the right to retain the authority to request and review the rates at the discretion of the Director.     SERFF state message dated 10/24/18


FRAUD / ANTI-FRAUD

Michigan issued an executive order establishing an Anti-Fraud Unit dedicated to investigating claims of criminal and fraudulent activity in the insurance and financial services market.     Executive Order 2018-9


GUARANTY ASSOCIATION

Virgin Islands amended its code relating to assessing insurers for the Insurance Guaranty Fund.     T.22 s 237; HB 305


LIABILITY INSURANCE

Louisiana adopted emergency measures relating to the administration of opioid antagonists by first responders. Provisions include definition of opioid-related terms, training requirements for first responders, record retention, and immunity from liability.     LAC 55:XXV.101

Montana amended regulations regarding requirements for insurance and bonding of marijuana testing laboratories. Prior to being issued a license, each laboratory must obtain liability insurance with an aggregate limit of $1 million. A $25,000 surety bond is also required.     37.107.305


OMNIBUS LEGISLATION

Arkansas issued notice of repeal of rules relating to insuring entities licensed in their state. Included in the repeal are rules regarding corporate minute books and reporting of property and casualty claim experience.     Bulletin 8-2018


REPORTS - DATA CALLS & OTHER REPORTS

Georgia issued a directive that requires reporting of claim information for losses from Hurricane Michael as of October 17, 2018. The directive applies to insurers covering property-related risks, and an initial report was due October 22, 2018. Additional reports are to be submitted weekly until January 7, 2019. The reports should be submitted using the Georgia Company Portal.     Directive 18-EX-3

Virgin Islands issued a bulletin replacing monthly data call reports relating to 2017 Hurricane Irma and Hurricane Maria with bi-monthly reports. The first bi-monthly report will be due by Dec. 20, 2018.     Bulletin 2018-06


WORKERS' COMPENSATION

California approved a revised version of the California Standard Form WC 04 04 06 F, Farm Schedule Endorsement. The new form is available online and is effective January 1, 2019. Insurers may choose to use their own versions of the form, but they must be pre-approved by the Department.     WCIRB Bulletin 2018-23

California has adopted regulations updating the evidence-based treatment guidelines of the Medical Treatment Utilization Schedule. The changes are effective for services rendered after October 30, 2018.     DWC Notice 2018-81

Delaware issued notice to all members of the Delaware Compensation Rating Bureau clarifying that unit statistical data reporting requirements have not changed, but procedures have. Their new web-based application, Unit Data Manager (UDM), for the submission of unit statistical information went live on October 1, 2018. Hardcopy reporting will be eliminated effective January 1, 2019.     DCRB Circular No. 956

New York issued a bulletin stating that the Chair of the Workers' Compensation Board will establish an assessment rate for all employers by November 1 of each year, to be effective January 1 of the subsequent calendar year. For calendar year 2019, the rate will be 12.6% of the standard premium or premium equivalent.     Bulletin WC 046-1111