Property and Casualty News
April 2025
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 authorized the temporary registration of unlicensed emergency adjusters in Daviess, Jefferson, and Oldham Counties following severe weather events. Insurance companies wishing to hire these unlicensed adjusters must submit a Form 8307 Request for Unlicensed Adjusters through the Department's eServices portal for approval. Notice Dated 3/19/25
AGENT / PRODUCER LICENSING AND APPOINTMENT
California issued a notice reminding insurance licensees and applicants that they must report background information changes within 30 days. The mandate applies to individuals and business entities and covers events such as convictions, license actions, and fiduciary breaches. Licensing Notice Dated 3/21/25
AUTOMOBILE INSURANCE
New York issued a circular letter informing insurers of amendments to Insurance Law § 3420(g) regarding supplemental spousal liability (SSL) insurance. Effective March 26, 2025, SSL insurance will be automatically included in motor vehicle policies if the first named insured lists a spouse, with the option to decline it through a written request. Insurers must notify insureds about SSL coverage and provide a new declination form. Circular Letter 2025-2
DISASTER / CATASTROPHIC EVENT
Missouri issued guidelines requiring insurers covering real or personal property to maintain updated catastrophe and disaster coordination contact information with the DOI. The designated contact will facilitate communication with the DOI during and after disasters, handle media inquiries, coordinate consumer outreach, and participate in industry meetings. Insurers are instructed to update their contact information via the UCAA process using Form 14. Bulletin 25-02
FRAUD / ANTI-FRAUD
Delaware reissued a bulletin clarifying insurers' obligation to report suspected insurance fraud. The published bulletin highlights the use of the NAIC’s Model Uniform Suspected Insurance Fraud Reporting Form, allows submission via email or mail, and clarifies options regarding referrals. Insurers are urged to provide accurate contact details. Domestic-Foreign Bulletin 15 (Reissued) (2)
Illinois issued a bulletin clarifying that insurers are not required to participate in regular fraud reporting programs, and such participation remains voluntary under Section 155.23 of the Illinois Insurance Code. The bulletin also encourages reporting workers' compensation and consumer fraud to the Department's designated units, while advising regulated entities to report criminal fraud to the appropriate law enforcement agency. Bulletin 2025-06
Kentucky amended its property and casualty insurance laws to strengthen definitions and penalties related to fraudulent insurance acts. The amendments introduce new terms, such as "criminal syndicate" and "Division," introduce greater penalties for fraud, and expand definitions to include a wider range of insurance policies and documents involved in fraudulent activities. SB 24
GUARANTY ASSOCIATION
Mississippi amended its insurance laws to include cybersecurity insurance under the Mississippi Insurance Guaranty Association statutes. The changes expand the definition of "covered claim" to include cybersecurity-related claims and establish a cap of $300,000 for all first- and third-party claims under a cybersecurity policy. Additionally, the maximum limit per claimant for property damage covered claims is changed to $400,000. SB 2894
HOLDING COMPANIES
Arkansas amended the Insurance Holding Company Regulatory Act to expand oversight and flexibility for domestic insurers and their subsidiaries. The updates define key regulatory terms, allow broader investment activities, introduce group capital and liquidity stress test reporting requirements, and enhance standards for affiliate transactions. SB 236
Idaho updated its insurance regulations to redefine key terms, including "enterprise risk," introduce requirements for insurers when filing annual group capital calculations and to set standards regarding compliance with the NAIC liquidity stress test framework. Additional provisions ensure fair transactions within holding company systems, emphasize confidentiality, and set criteria for exemptions from the annual group capital calculation for smaller insurers. HB 71
Illinois amended provisions related to prior notification of transactions within insurance holding company systems. Under the revised code, the director will disapprove transactions within 30 days of receiving a complete notice if specified standards are not met. The amendment updates the NAIC Accounting Practices and Procedures Manual and introduces new requirements for cost-sharing and management services agreements. 50 Ill. Adm. Code 654.30
North Dakota will increase various fees charged by the Department of Insurance. The renewal fee for the certificate of authority will rise from $100 to $150, the annual statement fee from $25 to $100, and the abstract fee from $30 to $50. Additionally, appointment fees for producers will increase from $10 to $25, while fees for life settlement brokers and providers, public adjusters, and life or health insurance administrators will also see increases. HB 1123
MISCELLANEOUS
Kentucky extended the insurance regulatory sandbox program through 2030 to provide additional time for development and testing of innovative insurance products and technologies within limited regulatory exemptions. Additionally, it established new statutes defining rights and requirements for netting agreements and financial contracts in the event of an insurer’s delinquency, along with updating procedures for the liquidation and rehabilitation of insurers. HB 184
Montana adopted the Pet Insurance Act, which requires insurers disclose exclusions for preexisting conditions, hereditary disorders, and other conditions before selling policies, and provides consumers the right to review and return policies within 15 days for a refund. It also outlines requirements for coverage exclusions, waiting periods, sales practices, and producer training. HB 78
PERSONAL LINES INSURANCE
Maine issued a bulletin addressing the use of aerial imagery by homeowners insurers. The bulletin highlights the importance of using aerial imagery carefully and transparently, advising insurers to provide homeowners with access to the imagery if it affects policy decisions, and ensure that the imagery is recent, clear, and used alongside other tools. Bulletin 483
Ohio amended the Fair Plan Underwriting Association's plan of operation to enhance coverage and operational procedures. The changes increase coverage limits to $2 million for real and personal property, introduce a $10,000 maximum for residential crime insurance, and update definitions. The amendments also refine property inspection processes, eliminate regulatory restrictions, remove gender-specific language, and adjust the maximum liability limits for various coverages. Rule 3901-1-18
PHARMACY BENEFIT MANAGERS
Arkansas enacted the Pharmacy and Pharmacist Timely Reconciliation and Payment of Pharmacist Services Act to regulate pharmacy benefits managers and streamline pharmacy claims processing. The law mandates timely payment for clean claims, imposes penalties for delays, and extends audit protections to the Arkansas Medicaid Program. HB 1620
Florida reminds all pharmacy benefit managers of their obligation to comply with the biennial examination process under the Prescription Drug Reform Act (SB 1550). The Department of Insurance warns that failure to submit required claims data and policies by the established deadlines may result in penalties. OIR Notice Dated 3/24/25
REPORTS - DATA CALLS & OTHER REPORTS
New York issued a data call for all insurers providing medical malpractice insurance on a direct basis. Insurers must complete a survey to determine their obligation to participate in the New York Medical Malpractice Insurance Plan by April 30, 2025. Medical Malpractice Insurance Data Call 2025
New York issued its annual data call regarding private passenger automobile insurance. The data call requires insurers to submit details on underwriting practices, difficult-to-insure vehicles, available discounts, and rate/rule manuals. Insurers must submit the information in specified formats by the given deadline, with possible penalties resulting if any inaccurate data is submitted. Private Passenger Auto Insurance Data Call - 2025
SURPLUS LINES
Connecticut published an updated list of all licensed insurance companies, approved/accredited reinsurers, and surplus lines insurers authorized in the state. Connecticut directs users to the State Based System Lookup Tool for more detailed company information. Notice Dated 3/31/25
New Jersey published an updated list of eligible foreign and domestic surplus line insurers in the state, along with an updated list of eligible alien surplus line insurers from the NAIC Quarterly Listing of Alien Insurers. Notice Dated 3/11/25
Pennsylvania published a new export list, identifying specific insurance coverages deemed generally unavailable in the authorized market. This allows these coverages to be placed in the surplus lines market without requiring a diligent search among admitted insurers in Pennsylvania. The new list, effective immediately, supersedes the previous one published on July 15, 2023. Notice Dated 4/5/25
TRADE PRACTICES
Massachusetts adopted new rules to address unfair and deceptive practices in marketing, solicitation, and sale of products, including those with trial offers or negative option features. The regulation mandates clear disclosure of total prices, including all fees, and requires specific cancellation instructions for trial offers, applying to all acts or practices in Massachusetts. 940 CMR 38.01
WORKERS' COMPENSATION
Alaska published a bulletin establishing new electronic filing guidelines to improve document processing. The bulletin mandates all submissions be in consolidated PDF format and prohibits the use of third-party file-sharing services. Alaska directs filings be submitted via email or its ZendTo service, and warns that noncompliance may result in rejections. Bulletin WC 25-
Colorado updated Rule 11 and DIME-related forms to streamline independent medical examination procedures in workers' compensation cases. The revised forms include changes to applications, notifications, and terminations, with the WC199 now issued as a standalone form. Notice Dated 4/1/25
Idaho amended its workers' compensation law to extend personal liability for failing to secure compensation to members of limited liability companies. The revised law, under section 72-319, now holds LLC members, along with corporate officers and employees, criminally liable for knowingly avoiding workers' compensation obligations. HB 64
Idaho amended its workers’ compensation law to relocate the definition of “member of an employer’s family” to Section 72-102, renumber all following definitions, and correct all code references. HB 65
Idaho increased the maximum allowable burial expenses from $6,000 to $10,000. Under the updated section 72-436, employers must cover funeral, burial, cremation, and transportation costs up to $10,000 if the injury results in death within four years, with payment directed to the person entitled to compensation or the deceased employee’s personal representative. HB 67
Iowa issued a notice regarding a new $8M assessment imposed on insurers and self-insured employers to address insufficient funds in the Second Injury Fund. Both insurers and self-insured employers are required to comply with the assessment due by May 30, 2025. Notices were emailed on March 28, 2025. Notice Dated 3/28/25
Maine amended 39-A Sec. 403 of its Workers' Compensation Act to eliminate the ability of an employer member of a group self-insurer to form workers' compensation fronting company arrangements. SP 67
Oregon introduced a quarterly review process to assess vocational assistance benefits for workers. This review focuses on claims closed after 2018, ensuring compliance regarding workers' eligibility for vocational assistance. Insurers and self-insured employers must accurately evaluate eligibility and respond promptly to WCD requests to avoid penalties. Notice Dated 4/7/25
Texas issued a bulletin clarifying that all insurance companies involved in workers' compensation and employers' liability insurance within the state are to file rates, and all supporting documentation, based on updated loss costs. These filings must be submitted by June 1, 2025, for policies starting on or after July 1, 2025. New entrants must submit filings at least 30 days before their first policy effective date. Bulletin B-0002-25