Property & Casualty News
November 2023
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!
AGENT / PRODUCER LICENSING AND APPOINTMENT
California amended the existing law requiring the license number of an organization to appear adjacent to or on the line below the organization's name. The amendment clarifies that the license number of an organizational licensee shall appear adjacent to or on the line below the organization's name if the email is sent from the organization and not an individual licensee and the communication involves an activity for which a license is required. AB 1578; Section 1725.5
Oklahoma's Insurance Department advised carriers of the process and deadline dates for renewal of producer appointments in a notice dated October 16, 2023. 2023 Appointment Renewal Notification
Washington amended its resident producer licensing rule to remove the condition that an applicant for a license complete a pre-licensure course of study for the lines of authority for which the person applied. WSR 23-21-103
AUTOMOBILE INSURANCE
California amended laws pertaining to the Bureau of Auto Repair, including an expansion of the definition of Automotive Repair Dealer. The definition now also includes a person who collects compensation for automotive repair services referred to someone other than the dealer or their employees. AB 1263
CLAIMS / CLAIMS ISSUES
Oregon's Administrator of the Workers' Compensation Division advised carriers that some workers are reporting that claims examiners have not responded in a timely manner to their inquiries. Carriers are reminded that all inquiries should be responded to within 48 hours. Notice dated October 31, 2023
CONFIDENTIALITY / PRIVACY
California adopted amendments to the California Right to Financial Privacy Act, including expanding the period of time in which a government agency may request information from a financial institution to investigate a crime. The bill also allows additional items to be included in the request. AB 386
California updated the California Consumer Privacy Act to include, in the definition of "sensitive personal information" personal information that reveals a consumer's citizenship or immigration status. AB 947
CREDIT INSURANCE
South Carolina's Department of Insurance approved new rates for credit property insurance sold in connection with loans subject to the South Carolina Consumer Protection Code. Order 2023-04
CYBERSECURITY
Missouri issued a bulletin providing companies with more detail concerning their obligations to report cybersecurity breaches to the department of insurance. Any security breach should be reported to the department within 10 days of becoming aware of the breach. The bulletin provides additional instructions for making the notification. Bulletin 23-04
New York's Department of Financial Services amended its regulation dealing with cybersecurity requirements for financial services companies. 23 NYCRR 500.1+
DISCRIMINATION
Delaware issued a bulletin notifying insurers of the prohibition of certain underwriting and rating factors in homeowners and private passenger motor vehicle insurance including: non-pending arrests, charges and indictments that do not result in conviction; convictions, arrests, charges, or indictments that do not relate in any way to either fraud or to the type of risk being insured or evaluated for the insurance being sought; and suspension or revocation of a driver’s license when the suspension or revocation is for nondriving-related reasons unless otherwise permitted. DOMESTIC AND FOREIGN INSURERS BULLETIN NO. 143
Michigan expanded the meaning of "unfair methods of competition and unfair or deceptive acts or practices" to include a refusal to insure, to continue to insure or limit the amount of coverage based on race, creed, marital status, sex, national origin, gender identity or expression, or sexual orientation. HB 4619
ELECTRONIC TRANSACTIONS
California amended its Uniform Electronic Transactions Act to exempt certain transactions including authorization for release of information under the Confidentiality of Medical Information Act. The amendments also require the authorization to contain an expiration date or event, and limits the duration to one year or less. AB 1697
Mississippi issued an opinion clarifying that bail bonds are considered "court documents" and thus excluded from the Uniform Electronic Transactions Act. Opinion Dated October 2, 2023
FLOOD INSURANCE / NFIP
Alabama's Governor issued an executive order, ensuring that Alabama continues to participate in the National Flood Insurance Program. Executive Order 737
MISCELLANEOUS
Montana adopted the updated rules needed to implement HB 836, providing for a "regulatory sandbox" waiver. The rules address the process to apply for a waiver, requirements for reporting and the process for revocation of the waiver. 6.6.9001+
Rhode Island's Superintendent of Insurance clarified that carriers are not allowed to add fees to policies other than those charged for installments, late payments, or invalid or rejected payment methods. It is the Department's position that operating expenses for property and casualty policies are required to be included as part of the filed rates. Policy, inspection, issuance, administrative, credit card, etc. fees are not allowed. Bulletin 2023-5
PROPERTY INSURANCE
Kentucky issued an advisory opinion of their interpretation of 806 KAR 12:095 Sec 9(1)(b). The interpretation will be to require that, for any loss of damaged items, other items in the area will be replaced with uniform items. The Department considers an "area" to mean the entirety of a part for a specific purpose, i.e. an entire roof, interior carpet and such. Advisory Opinion 2023-08
REINSURANCE
West Virginia's Insurance Department issued a list of accredited reinsurers and trusteed reinsurers. Company Report dated September 30, 2023
REPORTS - DATA CALLS & OTHER REPORTS
Colorado adopted rules for any insurer doing business in the state that reports more than $100 million in direct written premium nationwide on their annual report. Insurers subject to this regulation will be required to complete a NAIC Climate Risk Disclosure Survey on or before August 31, 2024, and each year thereafter. Regulation 3-1-18
Florida identified required data calls including enhanced catastrophe reporting for Hurricane Idalia for November 2023. Notice Dated November 6, 2023
New York's Deputy Superintendent of the Property Bureau issued a call for a special report of commercial automobile liability insurers covering public auto classifications. The data call is due by December 20. 2023. Public Auto Classifications Data Call dated October 30, 2023
SURPLUS LINES
New York extended the Excess Line Association of New York (ELANY) for 5 more years to July 1, 2029. The law requires all records that an excess line broker must maintain to be open to examination by ELANY. AB 4984
Texas Insurance Department announced a decrease in the stamping fee collected by the Surplus Lines Stamping Office. The decrease is from .075% to .04% of gross premium resulting from surplus lines insurance contracts. It is effective beginning January 1, 2024. Order 2023-8310
WORKERS' COMPENSATION
Idaho published the updated Workers Compensation Benefit Table for 2024. Notice of Weekly Compensation dated October 20, 2023
New York's Chair of the Workers' Compensation Board announced it established its annual assessment rate for all employers to be 9.2% of the standard premium or premium equivalent. The new rate is effective January 1, 2024. Bulletin WC 046-1635
Oregon Department of Consumer and Business Service entered an order that the workers' compensation premium assessment rates for 2024 will remain the same as the 2023 rates. OAR 440-045-0020
Wisconsin announced its annual Worker's Compensation Administrative Assessment to carriers and self-insured employers. Interest will be charged for late payments. Insurance Letter 540