Property & Casualty News
September 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!
ADJUSTERS
Maryland's Insurance Commissioner reminds all property and casualty insurers, producers and the Joint Insurance Association that insurers are responsible for the actions of independent adjusters, CAT adjusters and other vendors they retain or employ to handle any portion of their policyholders' claims. All individuals must adhere to the Unfair Claims Settlement Practices Act. All similarly situated homeowners must receive equal treatment. Bulletin 21-20
Rhode Island's Superintendent of Insurance issued a bulletin regarding emergency adjuster notification. Insurers that wish to activate emergency adjusters or appraisers are directed to follow the guidance in the most recent amendment to Insurance Bulletin 2005-154. Industry Alert 2021-1 (Amended)
AGENT / PRODUCER LICENSING AND APPOINTMENT
New Hampshire issued a bulletin to remind insurers that all producers acting as their agents must be appointed by the insurer. The Department may assess $2,500 penalties if insurers and producers are not in compliance. Bulletin No. INS 21-051-AB of August 6, 2021
Wyoming Insurance Department reminds resident and non-resident insurance producer firms and surplus lines brokerages of the responsibilities of a Designated Responsible Licensed Producer. Every organization with a business entity insurance license must designate one to five individuals who are responsible for compliance with insurance laws and regulations. Memorandum dated 09--01-2021
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
California's Insurance Commissioner issued a bulletin to all admitted and non-admitted insurers writing residential property insurance in California. Insurers are informed there is a mandatory moratorium for one year on cancellations and non-renewals of policies of residential property insurance after the declaration of a state of emergency due to wildfires on July 16, 2021 for property located in any zip code within or adjacent to the fire perimeter and shown in the bulletin. Bulletin 2021-04
DISASTER / CATASTROPHIC EVENT
Delaware informed insurers, producers and underwriters of the rescission of COVID-19 related bulletins and continuation of certain relevant provisions. Universally Applicable Bulletin 6
Louisiana's Insurance Commissioner issued a bulletin requesting insurers to voluntarily pay claims for prohibited use even if parishes did not issue a formal mandatory evacuation order in the 25 parishes listed in Emergency Rule 47. Bulletin 2021-07
Louisiana's Insurance Commissioner issued a directive to all authorized insurers and surplus line insurers doing business in California. Insurers are directed to pay loss of use claims and expenses incurred due to Hurricane Ida where civil authorities may or may not have had sufficient time to issue evacuation orders in 25 parishes. Directive 218
DISCRIMINATION
Texas passed a law that applies to any legal entity engaged in the business of insurance, including agents, brokers, adjusters, carriers, and surplus line carriers. This law prohibits an insurance entity from refusing or continuing to insure, limit the amount, extent or kind of coverage, or charge a different rate because of the individual's political affiliation or expression. HB 3433
FLOOD INSURANCE / NFIP
Maryland's Insurance Commissioner notified all resident Property & Casualty Producers that FEMA and the National Flood Insurance Program is implementing an updated method for flood insurance policy rating. The new program is called Risk Rating 2.0 and it begins with new policies effective October 1, 2021 and thereafter. Bulletin 21-23
MISCELLANEOUS
Florida requires that all sales telephone calls, text messages, and direct-to-voicemail transmissions have the consumer's prior express written consent if the call will be made using an automated machine to dial the recipient's phone number or will play a recorded message. The amended Florida Telemarketing Act sets forth other compliance requirements. SB 1120
Illinois amended its Business Corporation Act to require a publicly held domestic or foreign corporation with its principal executive office in Illinois to disclose the self-identified sexual orientation and gender identity of each member of its board of directors. SB 1730
PROFESSIONAL LIABILITY INSURANCE
Florida updated its procedural rules applicable to medical malpractice arbitration. FAC Rule 60Q-3.001
REPORTS - DATA CALLS & OTHER REPORTS
New Mexico issued a data call for insurers writing homeowners insurance in New Mexico. The data call relates to market trends to allow the Department to gain a better understanding of current trends and find a solution to the challenges some homeowners are facing. The information must be submitted by October 1, 2021. Bulletin 2021-018
Texas Insurance Commissioner issued a mandatory data call requesting information on "disallowed expenses" due by October 15, 2021. This data call applies to several lines including private passenger and commercial automobile, homeowners and commercial multiple peril, inland marine, medical malpractice, general liability, and others. Bulletin B-0026-21
TRADE PRACTICES
New Hampshire excludes from being a rebate the payment or assignment of all or part of a producer's commission on the sale of insurance to an employee of the producer. HB 518
WORKERS' COMPENSATION
Florida's Division of Workers' Compensation amended the rule dealing with utilization and resolution of medical reimbursement disputes. The new form to use for Petition for Resolution of Reimbursement Dispute can be found on the department's website. FAC Rule 69L-31.003
Florida's Office of Insurance Regulation announced that it has received the 2022 workers' compensation rate filing by the NCCI. The new rates would become effective January 1, 2022 and propose an average premium decrease of 4.9%. Notice dated August 30, 2021
Nevada's Division of Insurance announced the use of a new Form C-4A or release of Medical and Other Information. Notice dated August 17, 2021
North Carolina's Commissioner of Insurance informed members of the Industrial Commission Workers' Compensation Group that a Residual Market Rate Filing was made to become effective April 1, 2022. The filing proposes an average increase of 4.9% in overall premium level. WC Circular Letter C-21-15
Oregon's Workers' Compensation Division issued a bulletin advising workers' compensation insurers and self-insured employers on how to apply employer-reimbursed medical service costs for individual claims. This bulletin also provides updated maximum reimbursement amounts for calendar year 2022. WC Bulletin 345 (2nd Revision)
Rhode Island's Division of Workers' Compensation announced a maximum total disability weekly compensation rate increase for injuries occurring on and after October 1, 2021. Informational Letter dated September 1, 2021
The Texas Insurance Commissioner notified Texas Workers' Compensation system participants of new laws. SB 22 creates a rebuttable presumption that COVID-19 injury or death is work-related for first responders. This includes detention, custodial and peace officers, firefighters and emergency medical technicians. Special claim submission requirements are included. Other applicable laws are summarized. Bulletin B-0023-21
Wisconsin's Compensation Rating Bureau announced that the Insurance Department has approved an overall rate decrease of 5.44%. The rates and rating values are effective for new and renewal polices effective October 1, 2021 and after. Circular Letter 3233 dated July 20, 2021