Property & Casualty News
February 2014
We are celebrating over 25 years of providing selected items of current interest to our clients and friends. The items contained in this newsletter are derived from bulletins, regulations and legislative activity affecting the insurance industry. Please feel free to share this newsletter with others that may be interested. Contact our office for further details about any of the items contained in the newsletter.
AUTOMOBILE INSURANCE
Alabama issued an email asking insurers to email Ken Williamson, james.williamson@insurance.alabama.gov, with the form number and SERFF tracking number of any policy that has an exclusion, endorsement, amendment or any other reduction in coverage concerning "ice or driving on ice". Email from the Department
Virginia issued an Administrative Order announcing the physical damage rates for 2014 through 2016 model year vehicles. The rates are effective April 1, 2014. AO 11960
CLAIMS ISSUES
Kentucky issued a notice requiring all insurers sending unlicensed adjusters to the State to help with the recent catastrophic losses to notify the Department by electronically submitting Form 8307 to the Department. Adjuster Notice 2013 Catastrophe Serial No. 30 and 32
Maryland issued a bulletin that requires all insurers to submit, electronically, to the Department contact information in the event of a catastrophe. Submissions are due by 4/15/2014. Bulletin 14-01
New Hampshire adopted new legislation regarding professional liability coverage for health care providers. Insurers are required to report to the Department by October 15 each year all early offer claims and any subsequent activity on those early offer claims. Ins. 4901.01 dated 10/10/2013
New Mexico issued a bulletin establishing the interest rate for claims not paid within 45 days of proof of loss is 1 1/2 X 3.5% or 4.875%. This rate will remain in effect until the Department issues a bulletin in January 2015. Bulletin 2014-002
ELECTRONIC TRANSACTIONS
Alaska issued an Order advising all future bulletins, notices and orders will be delivered electronically. Order R13-05
Oregon amended its regulation to allow for proof of automobile insurance to be displayed on a personal electronic device. 735-050-0120
Rhode Island issued an alert advising that the Department requires all special reports from licensees and entities to be submitted electronically. Industry Alert 2014-1
FILINGS: PROPERTY/CASUALTY
Texas issued a bulletin announcing that the Department will no longer issue premium reduction certificates. There is no statute that requires a certificate in order for an insurer to offer premium discounts. The bulletin further states if an insurer references premium reduction certificates or former Insurance Code in their rating manual and policy forms a filing needs to be submitted to reflect the information the insurer will accept instead of a premium reduction certificate. Bulletin B-0003-14
FINANCIAL REGULATION
Arkansas issued a bulletin requiring insurers to use the NAIC Accounting Practices and Procedures Manual as of March, 2014 for the Annual Statement as of December 31, 2014. The Statement is to be filed with the Department before March 1, 2015. Bulletin No. 3-2014
MISCELLANEOUS PROPERTY/CASUALTY
Louisiana issued a bulletin advising tax returns must be submitted electronically. The State will no longer accept tax returns submitted via mail. The bulletin provides instructions on how to file tax returns electronically. Bulletin 2014-01
Puerto Rico issued a ruling stating that members and subscribers of a rating organization must abide by filings made by the rating organization if the rating organization has been authorized to make filings on behalf of the insurer. Insurers must use the most recent programs approved for a rating organization on the effective date. If an insurer wants to defer an effective date they must submit the request in writing to the Department. Ruling CN-2013-164-AP
Texas issued a bulletin calling for data for 2013 4th quarter workers' compensation deductible plans. Data is due to the Department by 2/15/2014. Bulletin B-0002-14
Texas issued a data call for fourth quarter market condition information. A response using the interactive PDF forms available online is due by 2/15/2014. Bulletin B-0002-14
ORSA: OWN RISK AND SOLVENCY ASSESSMENT
Illinois enacted a statute requiring holding companies to submit an annual enterprise risk report. HB 2962
PORTABLE ELECTRONICS INSURANCE
Massachusetts enacted new legislation regulating portable electronics insurance. The law states the conditions that must be met for licensing, disclosure statements, and cancellation provisions among other things. House Bill 3541
SURPLUS LINES
Montana issued a notice advising surplus lines agents they are required to file a tax return regardless of whether they wrote any premium in Montana or not. The tax returns are due by 4/1/2014. Notice dated January 27, 2014
WORKERS' COMPENSATION
Alaska issued a bulletin outlining requirements for filing annual reports and paying Second Injury Fund contributions. Both are due by 3/1/2014. Bulletin WC 13-09
California posted on its website the form for claims administrators to use when submitting the 2014 annual report of inventory. DWC Notice dated January 21, 2014
New York amended the definition of employee to include any individual performing services in the commercial good transportation industry for a commercial goods transportation contractor who does not overcome the presumption of employment. Senate Bill 5867
Rhode Island issued a letter announcing new and revised workers' compensation forms as well as retired forms. It is requested that new and revised forms be used as soon as possible and retired forms will be accepted through the end of 2014. Informational Letter 2014-01
PLAN NOW TO ATTEND
OUR ANNUAL ADVERTISING COMPLIANCE SEMINAR
A Practical Approach to Advertising Compliance
for the Insurance Industry
(includes sessions on Internet Advertising and Social Media Issues)
August 11 – 12, 2014
Kansas City, Missouri
Click here for complete details and registration information from our website
Jerry L. Wickersham, JD, AIRC
816.391.2743
Jerry.Wickersham@FirstConsulting.com
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First Consulting & Administration, Inc. is now offering a full range of consulting services to create or enhance your ERM/ORSA Compliance Program. The services are designed to be tailored to your company’s requirements. You can select from any or all of these services to give your Company just the right amount of assistance with its ORSA compliance strategy.
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Please contact me to discuss any of these services and learn how a strong ERM program even helps you comply with the Federal Sentencing Guidelines for Organizations, to help keep your CEO out of jail!
Carol Stern
816.391.2746
Carol.Stern@FirstConsulting.com