Property & Casualty News
September 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!
ADJUSTERS
Kentucky issued an advisory opinion clarifying permissible fees payable to a public adjuster. The collection of fees for claims paid prior to the execution of the written contract is only permitted in emergency situations at the Commissioner's discretion. In addition, the restriction of fees to 10%/15% applies to all fees collected by adjusters. Advisory Opinion 2023-07
AGENT / PRODUCER LICENSING AND APPOINTMENT
California enacted legislation requiring agent examinations be provided in additional, specified languages. The Commissioner will be required to report annually on the number of applicants taking the exam in each language and the pass rate. AB 451
Idaho announced that, beginning 9-1-2023, Pearson VUE will provide examination delivery service for all regulatory licensing for the Idaho Department of Insurance. This includes producer and adjuster licensing. Candidates interested in scheduling an examination should follow the links on the department's website. Notice Dated 8-24-2023
AUTOMOBILE INSURANCE
Massachusetts announces that the amendments proposed by the Commonwealth Automobile Reinsurer's ("CAR") to its Performance Standards for the Handling of Auto Insurance Claims are approved. The amendments include changes to the audit process, clarification of the claim screening and resolution practices, statutory changes to ensure payments are not subject to liens and a recommendation for NAIC standards. Order Docket C2023-01
CLAIMS / CLAIMS ISSUES
Colorado adopted new regulations, intended to simplify the claims process for homeowners insurance. The new rule sets out standards for submission of the policyholder inventory and expediting reimbursement for losses. 3 CCR 702-5, Regulation 5-1-23
Michigan published a bulletin providing updated guidance as a result of the Michigan Supreme Court decision in Andary v USAA Cas Ins Co, holding that the law does not apply to the cost of treatment provided to persons insured in accidents prior to June 11, 2019. The bulletin provides guidance on reprocessing of claims and refers to prior bulletin 2021-36-INS. Bulletin 2023-21-INS
COMMERCIAL LINES INSURANCE
Alaska announced that its Proof of Financial Responsibility Regulation is amended. The amounts of required coverage for discharge of oil have been increased. Memorandum of August 16, 2023; 18 AAC 75.205+
CONFIDENTIALITY / PRIVACY
California enacted an amended privacy law allowing for an abbreviated privacy notice when certain conditions are met. SB 793
DISCLOSURE REQUIREMENTS
Louisiana issued a revised bulletin to issuers of homeowner policies. Insurers are required to deliver the Catastrophe Claims Process Disclosure Guide when a homeowner makes a claim for damages due to a disaster or catastrophic event. Insurers are further required to maintain proof of delivery of the guide as described in the bulletin. Bulletin 2022-09
FILINGS: PROPERTY / CASUALTY
Colorado issued a bulletin providing guidance for insurers on the filing of underwriting methodologies for homeowners' policies. The department clarifies what constitutes underwriting methodologies and what information should be included in the filing. In addition, the department states that filings are to be made in SERFF no less than 30 days prior to the effective date. Bulletin B5.47
FRAUD / ANTI-FRAUD
New Mexico announced an extension of time to pay the New Mexico Fraud Assessment. Insurers have until October 2, 2023. After this date the fraud assessment and fee shall be subject to penalty. Notice 8-29-2023
Utah has repealed its mandatory fraud reporting rule because the reporting process has now been enacted by statute. R590-248
LIABILITY INSURANCE
Pennsylvania enacted a bill amending the Death by Wrongful Act law to raise the minimum amount of damages to $350,000. HB 5513
MARKET CONDUCT
Illinois adopted the Consumer Fraud and Deceptive Business Practices Act, which prohibits a business from sending a letter or postcard if the letter or postcard does not include the proper disclosures. SB 1440
MISCELLANEOUS
California enacted legislation creating a clearinghouse program to allow those denied coverage or renewal to secure commercial insurance coverage. The legislation requires insurers participating in the program to follow existing privacy laws. SB 505
Delaware enacted the Pet Insurance Act. The act sets a comprehensive framework for pet insurance policies that may be marketed in the state and for the sale and disclosure to consumers. HB 156
Louisiana announced the second 30-day application period for insurance companies to apply for the Insure Louisiana Incentive Program. The program offers grants to insurers who write new policies to residents who cannot find affordable insurance coverage. Notice 9-1-2023
New York enacted a new bill amending the insurance law as it relates to, among other things, confidentiality, and information sharing. It addresses the sharing of information between the insurance department and the NAIC, with other departments and with third party consultants, as designated by the department. The bill also addresses group capital calculations (GCC) and liquidity stress testing. SB 7095
REPORTS - DATA CALLS & OTHER REPORTS
Hawaii has issued a data call requiring semi-monthly reporting of claims data related to the August 8, 2023, wildfire and wind damages. There are also two non-claims reporting schedules, including the Reinsurance Reporting schedule and the Total Insured Value Reporting by zip code. Memorandum 2023-4E
Hawaii issued notice of the annual reporting requirements for Homeowners Insurers. Each year, by October 1, Homeowners Insurers shall submit representative premium quotations to the Commissioner. Additional directions are included in the notice. Annual Reporting Requirements Homeowners (2023)
Texas issued a bulletin to all property and casualty insurers in the state notifying them of a mandatory data call for information about "disallowed expenses." The bulletin includes instructions for completing the data call. The completed report is due no later than 9-29-2023 for the period January 1, 2022, to December 31, 2022. Bulletin B-0011-23
THIRD PARTY ADMINISTRATORS
New Hampshire enacted a law requiring that an insurer must conduct, at least semi-annually, an on-site or virtual audit of the operations of administrators. SB 99
UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE
Maryland published a bulletin providing guidance on the new law for Enhanced Underinsured Motorist Coverage (EUIM). The law requires that insurers make the offer for EUIM "using the form required by the Commissioner" and the bulletin provides the final required form. Bulletin 23-12
WORKERS' COMPENSATION
Arizona published updated Statutory Average Monthly Wage Maximum Benefits. Workers Comp Notice of Monthly Benefit
Florida adopted a rule intended to streamline the process for an injured worker to apply for screening for assessment and reemployment. FAC 69L-22.006
Minnesota's Department of Commerce announced that it has approved the 2024 Minnesota Ratemaking Report, effective January 1, 2024. Average pure premium has decreased. Cir No. 23-1824
New York enacted an amendment to its Workers Compensation law, raising the weekly compensation for the year, 2024. SB 1161
Oregon published a bulletin, updating the "Request for Reimbursement of Expenses" form. Rates, including lodging and meal rates have been updated. Insurers must include a form for requesting reimbursement with each independent medical examination appointment notice they send. Bulletin 112 (revised)
South Carolina issued an advisory notice reporting that a number of forms have been updated to provide a place to identify requested amendments to pleadings. New forms are available on its website. Outdated forms will be accepted until 11-1-2023. After that, outdated forms will be returned. WC Notice 9-1-2023