Property & Casualty News
November 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!
CREDIT FOR REINSURANCE
Colorado amended its reinsurance regulation to bring it into alignment with revisions to the NAIC Credit for Reinsurance Model Regulation. 3 CCR 702-3, Regulation 3-3-3
CYBERSECURITY
New York notified all entities regulated by the Department of Financial Services (DFS) that they may adopt the cybersecurity program of an affiliate. However, an examination or investigation of a Covered Entity may include review of the adopted portions of the cybersecurity program of that affiliate. The Covered Entity is responsible for providing documentation sufficient to enable DFS to determine compliance by the Covered Entity with the Cybersecurity Regulation. Industry Letter dated October 22, 2021
DISASTER / CATASTROPHIC EVENT
California's Insurance Commissioner informed all insurers writing residential property insurance of a mandatory moratorium on cancellations and non-renewals after an emergency declaration is made. This applies to both admitted and non-admitted insurers. Bulletin 2021-9
Louisiana issued a bulletin reminding P&C and surplus lines insurers to comply with the Policyholder Bill of Rights (La. R.S. 22:41) regarding the manner and time of payment of claims, and other obligations following Hurricane Ida. Bulletin 2021-09
Oregon issued a bulletin to clarify expectations for P&C insurers regarding expediting claims handling and other matters related to wildfires. Two laws were passed that provide minimum protections for homeowners who suffer a loss as a result of a declared emergency. Bulletin DFR 2021-5
FILINGS: PROPERTY / CASUALTY
Montana's Commissioner of Securities and Insurance reminds carriers of certain requirements of the Property and Casualty Insurance Policy Language Simplification Act. Each policy must include a table of contents and notice section of important provisions. Enforcement action, including withdrawal of prior approval, will be waived through March 31, 2022, to support voluntary compliance with the act. After that date, CSI intends to take appropriate enforcement action with respect to any form that violates the Act. Advisory Notice dated October 20, 2021
Oregon is updating many Product Standards for Forms, Rates and Rules. Three are completed so far: 1) Personal Lines Liability and Commercial Lines Liability; 2) Monoline and Package Property; and 3) Stop Loss/Excess Loss. Listing of Current Filing Forms as of November 10, 2021
FRAUD / ANTI-FRAUD
The Federal Financial Crimes Enforcement Network (FinCEN) issued an advisory on ransomware and the use of the financial system to facilitate ransom payments. Advisory FIN-2021-A004
GENERAL LIABILITY INSURANCE
Oregon passed a law requiring an insurer to notify a claimant in writing at the time the insurer pays $5,000 or more to settle a third-party liability claim under certain conditions. SB 180
LIABILITY INSURANCE
Michigan's Department of Insurance issued an updated list of municipalities participating in the Fire Insurance Withholding Program. Notice Edition 137 released November 1, 2021
OMNIBUS LEGISLATION
California passed an omnibus bill containing new mailing requirements for renewal and nonrenewal of residential property insurance, and for notice of cancellation of a policy of workers' compensation insurance. Section 1871.10 is added to the Insurance Code concerning knowingly making a false or fraudulent material statement or material representation. AB 1511
REINSURANCE
New Jersey's Department of Banking and Insurance provided a list of reinsurers who qualified as "Certified Reinsurers." All insurers domiciled, licensed or eligible to write surplus lines insurance in New Jersey are allowed to take full credit for reinsurance ceded to the listed reinsurers when collateral is posted at the minimum requirement percentage until December 31, 2021. Notice dated November 4, 2021
REPORTS - DATA CALLS & OTHER REPORTS
Illinois' Director of Insurance requests companies writing homeowners insurance to report specific data relating to claims information for dog-related incidents for two years, beginning July 1, 2023, for calendar year 2022. Company Bulletin 2021-12
UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE
New Mexico's Superintendent of Insurance issued a bulletin to all automobile insurers covering risks located in the state. Effective immediately carriers must adopt a Disclosure and an Exclusion for use in every uninsured motorist and underinsured motorist automobile policy. Instructions on language and filing are included. Bulletin 2021-024 dated November 9, 2021
WORKERS' COMPENSATION
Connecticut's Insurance Department approved the NCCI Voluntary Loss Costs, Assigned Risk Rates and Rating Values filing with changes effective January 1, 2022. WC Memorandum and Order dated October 28, 2021
Delaware's Compensation Rating Bureau (DCRB) is expanding the carriers that will be reporting for a Medical Data Call and Indemnity Data Calls beginning January 1, 2023, due to be reported by June 30, 2023. The eligibility threshold will be reduced from 1% to .5% or greater market share in Delaware. DCRB Circular No. 1009
Delaware's Insurance Commissioner approved the DCRB Amended Filing No. 2104 of workers’ compensation residual market rates and voluntary market loss costs. Detailed filing requirements are contained in the circular letter. DCRB Circular No. 1008
Kentucky's Department of Insurance announced the approval of the 2021 rate filing used to develop rates for workers' compensation coverage. Notice dated November 2, 2021
Kentucky's Labor Cabinet, Department of Workers' Claims published the discount rate used in the lump sum settlement of future periodic payments. This rate is fixed by the Commissioner each year based upon the interest rate paid for U.S. Treasury Notes. Dept. of Workers' Claims Order dated November 3, 2021
The Massachusetts Workers' Compensation Rating and Inspection Bureau finalized the Calendar Year 2020 Voluntary Assessable Premium Bases used to determine shares of the Premium Year 2020 Residual Market and Reinsurance Pool Results. WC Special Bulletin 11-21
North Carolina's Insurance Commissioner approved a Workers Compensation loss cost reference filing to become effective April 1, 2022. Any amendments to an insurer's current minimum premiums, minimum premium formula, expense constant or premium discount plan must be filed with the Department of Insurance. Proposed workers compensation residual market rates, rating values and miscellaneous values are still pending. WC Circular Letter C-21-21
Pennsylvania's Compensation Rating Bureau notifies carriers of changes to medical data call and indemnity data call eligibility requirements. These data calls are mandatory and apply to carrier groups with a predetermined market share. The eligibility threshold is reduced from 1% to .5% or greater of market share in Pennsylvania. Bureau Circular No. 1772
The Texas Division of Workers' Compensation (DWC) announces it has adopted revised DWC Forms to allow employers and insurance companies to request services and provide information about accident prevention plans and services. The new forms are on the Insurance Department website and are available for immediate use. DWC Notice dated November 9, 2021
The Texas Workers' Compensation Research and Evaluation Group at the Department of Insurance published a report on medical necessity dispute resolution trends in the Texas Workers' Compensation system. The report covers the years 2014 to 2020 and measures the frequency, outcomes, and timeliness of medical necessity disputes. Medical Necessity Dispute Resolution Trends Report issued November 2021
Wyoming amended its regulation dealing with employer overage, compliance and discount programs under the Workers' Compensation Commission rules, regulation and fee schedules. Regulation R27-14-201 +