Property & Casualty News

September 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!

NOTICE to our readers regarding Hurricane Florence:

As we went to press and published on September 21, several insurance regulators (MD, NC, SC) were publishing special bulletins related to adjuster licensing/appointments, nonpayment terminations, claim handling, etc. For timing purposes we were not able to include the notices. You should be aware these have been distributed. Please let us know if you need help accessing information for a particular state.


Colorado implemented an emergency measure relating to producer fees.  The intent of the measure is to prohibit producers from charging certain fees for which they are already compensated through commissions and to clarify which fees may be charged. The measure is effective August 8, 2018 through December 6, 2018.     Emergency Regulation 18-E-02 eff. 8-8-2018


Beginning 1/1/19, the Oklahoma Insurance Department will require at least one hour of continuing education on flood coverage.  The requirement applies to individuals holding a property line of authority as a resident insurance producer, CSR, adjuster, or nonresident adjuster.     Special Notice 8/2/18

Oregon has created continuing education requirements for flood insurance producers.  For a producer that negotiates, sells, or solicits flood insurance, at least two credit hours of continuing education must be on any combination of the following subjects: current state and federal laws relating to flood insurance, the National Flood Insurance Program, or private flood insurance.     OAR 836-071-0215


Louisiana amended regulations regarding employment or association with licensed insurance producers who have been convicted of a felony.  The DOI must now approve consent for the association/employment of these producers.  This change is effective for any producers hired after August 1, 2018, and consent must be received by December 31, 2018.     Advisory Letter No. 2018-02

New Mexico issued a notice stating all active resident and non-resident individual licensees may renew their license 90 days prior to expiration.  All continuing education requirements for NM residents and those designating NM as their resident state must be completed at least 30 days prior to the license expiration date.     Individual License Renewal Notice


An administrative order approved amendments to the Virginia Automobile Insurance Plan, revising private passenger auto Plan Rule 23 and Uninsured/Underinsured Motorist rate schedules to introduce a $40,000 increased property damage limit.  There are also additional increased limit factors for Uninsured/Underinsured Motorist.     Administrative Order No. 12063

Delaware has issued a bulletin reminding automobile insurers that the minimum bodily injury and property damage liability limits in automobile insurance policies were raised.     Auto Bulletin 25 (2nd Revision)

Massachusetts issued notice that the DOI added certain 2019 model year motor vehicles to the designated list of "high-theft vehicles".     PC Filing Guidance Notice 2018-A

New York issued a circular letter concerning inclusion of loss-of-use costs in calculating damage to property in relation to the surcharge threshold.     Circular Letter 2018-11

North Carolina enacted House Bill 382 which requires companies to obtain records of convictions for traffic violations prior to the sale of a new automobile insurance policy.  This becomes effective on 1/1/19.     Circular Letter A-18-3

Utah issued a bulletin to remind insurers who write private passenger automobile insurance that it is a violation to use not-at-fault incidents when rating a policy.     Bulletin 2018-04


New Jersey's governor issued an Executive Order declaring a state of emergency for several flood-impacted counties.  This order allows the Governor to authorize state officials and agencies to waive, suspend or modify any existing rule which could be detrimental to the public welfare.  It also requires that all persons cooperate with this order.     Executive Order 2018-33

New Mexico issued Executive Orders relating to declarations of a state of emergency in response to a monsoonal storm system and flooding.     Executive Orders 2018-041 & 2018-042

Texas' governor extended the disaster declaration for 60 counties affected by Hurricane Harvey.  Any regulatory statute prescribing the procedures for conduct of state business or any order or rule of a state agency that would in any way prevent, hinder or delay necessary action in coping with this disaster shall still be suspended.     Disaster Proclamation of 8-7-18


United States Congress extended the National Flood Insurance Program to 11/30/18.     SB 1182


Washington issued an advisory to all insurers in the state regarding "implementation credits".  An insurer paying, offering, promising, or agreeing to pay implementation credits violates WA insurance law regarding inducements or rebating.  Any filings that include implementation credits have been or will be rejected.     Advisory T-2018-01


Alabama has repealed a bulletin that made use of OPTins online system for tax payments optional.  The bulletin is effective October 1, 2018.     Bulletin 2018-03 08-21-18


California issued an opinion relating to the confidentiality of P&C underwriting guidelines.  Such guidelines, submitted to the DOI by insurers, must be held as public and available for inspection pursuant to Section 186 1.07 even if they are marked as confidential or trade secret.     Opinion dated August 10, 2018


Alabama's Department of Insurance is requesting information from companies writing Homeowners and Private Passenger Automobile programs regarding complaints/inquiries and renewals.     SERFF message dated 8/30/18

Pennsylvania is conducting its annual Private Passenger Automobile Data Call to monitor the private passenger automobile insurance marketplace in PA.  Insurance companies with PA private passenger automobile direct written premiums in 2017 are required to complete Parts 1 and 2.  Insurance companies with no PA private passenger automobile direct written premiums in 2017 are required to submit only Part 2.  This information is to be submitted to the Department no later than 10/15/18.     2017 Pennsylvania Private Passenger Automobile Data Call


Oklahoma issued a bulletin that supersedes the Oklahoma Insurance Department's (OID) Bulletin LH 2013-03/PC 2013-11 (11/25/13).  All companies writing casualty and accident and health stop loss coverage must file their policy forms with the OID for prior approval.  They are not a form of reinsurance, so they are not exempt from approval.  Requirements are given in the bulletin for the coverage to be considered a stop loss policy.     Bulletin No. LH 2018-02 & PC 2018-02


Alaska issued a bulletin regarding the published "white list" of eligible surplus lines insurers in their state.  The white list includes foreign insurers that meet state requirements.  "Listing approved" status indicates that the insurer is alien.  The Department's website can be used to check an insurer's status.     Bulletin B 18-11


Georgia issued a bulletin addressing illegal offers to rebate or waive deductibles for homeowners insurance.  If a homeowner submits a contractor's quote to an insurance company knowing that the actual cost will be a lesser amount, the contractor and homeowner may both be in violation of Georgia law.     Bulletin 18-EX-3


Arizona amended regulations regarding workers' compensation.  Changes include (among others): authorization forms, preauthorization, written requests, and payer response requirements.  The changes are effective October 1, 2018.     R20-5-106

Illinois issued a bulletin reminding insurers that all payments must be made within 30 days of receipt of bills that contain substantially all of the required data elements necessary, or provide a specific basis for denial.     Company Bulletin 2018-05

Maine issued notice that the Workers' Compensation Board appellate division moved the Augusta office effective September 1, 2018.  The notice includes updated contact information.     Notice dated August 31, 2018

Nebraska's Workers' Compensation Act requires hospitals, workers' compensation insurers, self-insured employers, and risk management pools to report claim and stop-loss thresholds counts by Diagnostic Related Group (DRG) to the court.  They are also required to identify bills that dealt with trauma services.  They are now able to enter both DRG claims counts and zero claims information on the same web-based data entry system.  Annual deadline for data submission is 10/15/18.     WC Notice of 8/1/18

North Carolina approved a new state-specific endorsement. This endorsement informs the policyholder that specific non-insurance goods and/or services as outlined in the endorsement schedule are being offered by a third party vendor. There is no premium impact or charge associated with this form.     WC Circular Letter C-18-15