Property and Casualty News
March 2016
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.
AGENT / PRODUCER CONTINUING EDUCATION
Arkansas has amended its regulations relating to continuing education requirements for insurance producers and adjusters. Rule and Regulation 50 Dated 08-25-2015
AGENT / PRODUCER LICENSING AND APPOINTMENT
Arkansas has amended its regulations relating to insurance pre-licensing education requirements. Rule and Regulation 31 Dated 11-5-2015
Maine amended its appointment and licensing regulation to reduce licensing fees for both resident and non-resident individual insurance producers and the appointment fees for non-resident individual producers by business entities. Rule Ch. 545 dated 10-6-2015
Maine amended its regulations pertaining to producer licensing and appointment fees for individual and business entity insurance producers. It lists the fees charged for the issuance of, and for the biennial renewal of, resident and non-resident individual and business entity producer licenses. Chapter 545
AUTOMOBILE INSURANCE
Colorado repealed its regulation regarding timely payment of personal injury protection benefits for automobile insurance. CCR 702 Reg. 5-2-8 and 5-2-9
New Jersey issued a new order pertaining to the revised Attending Provider Treatment Plan form for automobile insurance. Order A16-101
South Carolina amended an act to include immunity for property damage incurred in rescue from a locked vehicle. HB 3145
South Dakota enacted a law that revises certain provisions regarding the exemption of motor vehicles from the motor vehicle excise tax. HB 1098 and HB 1113
Wisconsin amended laws relating to statutes of limitation on claims involving property damage and claims arising from a motor vehicle accident and covered by a motor vehicle insurance policy. AB 223
Wisconsin amended provisions clarifying that the term "interstate commerce" also includes foreign commerce. AB 424
CORPORATE GOVERNANCE
Iowa adopted rules providing procedural requirements and the required contents of the corporate governance annual disclosure. 191-111.1 +
35 STATES WILL ADOPT THE CORPORATE GOVERNANCE MODEL IN 2016
Changes needed to your Board of Director’s documentation can take months, so we advise you act now!
First Consulting’s Corporate Governance Tool Kit can help by providing your company the documentation
needed for compliance under CGAD and the supporting Model Regulation.
CREDIT FOR REINSURANCE
Nebraska amended its regulations regarding Credit for Reinsurance to revise the required surplus that must be maintained regarding policyholders. 210 NAC Ch. 65 s 001 Dated 10-27-2015
DISASTER / CATASTROPHIC EVENT
Texas amended its regulations concerning the funding structure for the catastrophe reserve trust fund for the Texas Windstorm Insurance Association (TWIA). 28 TAC s 5.4101
FINANCIAL REGULATION
Arkansas has issued a bulletin regarding publication of the NAIC Accounting Practices and Procedures Manual for all licensed domestic insurers and other domestic reporting entities. Bulletin 1-2016
Colorado amended its regulation regarding the minimum amount of fidelity coverage required to be maintained by the insurers for money or other property that may be lost due to theft or dishonest acts of its officers, directors and employees. CCR 702 Reg. 3-1-1 dated 12-28-2015
FLOOD INSURANCE / NFIP
Pennsylvania amended its law regarding the flood insurance education and information program. SB 494
ASSISTANCE WITH PRODUCT INNOVATIONS
Whether you have exclusive programs or are thinking of modifications
to standard forms like ISO or AAIS we can help for any line of business.
Our knowledgeable staff can assist you and your staff with program or form revisions.
Click here to learn more.
LIABILITY INSURANCE
New York amended its regulations regarding financial security, general liability insurance and protective liability insurance requirements related to the Department of Transportation. NYCRR 127.1, 127.3 and 127.4
Oregon amended its regulation regarding liability insurance for landscape contracting businesses. 808-003-0095
Virginia amended its regulations relating to notice requirements in automobile, commercial liability, and homeowners insurance policies. HB 31
West Virginia amended its regulation relating to the liability of manufacturers and sellers of prescription medications and medical devices. SB 15
MISCELLANEOUS
Maryland issued a new bulletin informing licensed surety insurance producers, surety insurers, and other entities of recent changes to the Insurance Producers and Other Insurance Professionals - Bail Bonds insurance regulation. BULLETIN 16-09
Wyoming has amended its regulations governing consultants who provide advice, counsel or opinion with respect to insurance needs, insurance risks, or concerning the benefit, coverages or provisions under any such policy of insurance, or any formal plan of managing pure risk. Ch. 18 s 1 Dated 09-21-2015
NOTICE TO INSUREDS
Iowa amended requirements relating to conditions under which notices of insurance cancellations, non-renewals, or terminations may be delivered electronically. 191-4.24
Maryland amended its regulation relating to notification requirements in connection with cancellations, non-renewals, increases in premiums or reduction of coverage on a property and casualty insurance policy. Bulletin 16-08
PREMIUM ISSUES
Puerto Rico has adopted a new rule relating to the premium and commission Annual Business Report form for all authorized domestic insurers, foreign insurers, and general agents and managers. Ruling CN-2016-194-ES and Ruling CN-2015-192-ES
PREMIUM TAX
Tennessee issued a memorandum regarding the electronic premium tax filing through the use of online premium tax for insurance (OPTins). Memorandum of February 17, 2016
PROPERTY INSURANCE
Texas amended regulations regarding filing requirements for residential property filings. 28 TAC s 5.9323 and 28 TAC s 5.9700
Texas issued a new order approving the Texas Fair Access to Insurance Requirements Plan Association rate filings. No. 4297
AFFORDABLE STATE FILINGS
First Consulting can help with your product filings. Whether you have form changes, rate changes or are adopting/delaying bureau filings, or are expanding to new lines of business or additional states, we can help with a flexible and cost-effective approach.
Click here to learn more.
REINSURANCE
Colorado has amended its regulation regarding assumption reinsurance agreements. 3 CCR 702 Reg. 3-3-1 dated 12-31-2015
Colorado has amended its regulation regarding property and casualty reinsurance agreements. CCR 702 Reg. 3-3-5 dated 12-28-2015
RISK RETENTION GROUPS
South Dakota enacted a bill revising and implementing certain provisions regarding the regulation of risk retention groups. HB 1040
SERVICE AND ADMINISTRATIVE FEES
Alaska issued a bulletin regarding fees in insurance transactions to all insurance producers and companies authorized to transact insurance business in the state and other interested parties. Bulletin B 16-02
SURPLUS LINES
Delaware amended its bulletin regarding the survey to be completed for all insurance companies that market property and casualty insurance in Delaware to also be completed by all surplus lines insurers that market property and casualty insurance, as well. Domestic-Foreign Insurers Bulletin 84
UNCLAIMED PROPERTY
South Carolina issued a new opinion regarding the interpretation of intangible property subject to state custody under the Uniform Unclaimed Property Act. Opinion of February 10, 2016
WORKERS' COMPENSATION
Alaska amended regulations regarding Workers' Compensation and fees for medical treatment and services. 8 AAC 45.082 Dated 12-03-2015
California has revised, restructured, and updated rules relating to policy forms, endorsements, and ancillary agreements for Workers' Compensation. T. 10 s 2218 Dated 12-19-2014
Colorado has revised its Workers’ Compensation Rules of Procedure regarding medical treatment guidelines. 7 CCR 1101-3 Rule 17 dated 10-28-2015
Louisiana amended its regulation relating to Workers' Compensation medical treatment guidelines. LAC 40:I.2519 dated 10-20-2015
Montana adopted several new regulations pertaining to the reopening of medical benefits automatically closed in certain workers' compensation claims. New Rule I dated 11-25-2015
New York issued a new bulletin announcing that effective March 1, 2016, the Board will utilize a desk review process to review and approve/disapprove Section 32 Waiver Agreements (negotiated agreement between the injured worker and the carrier to settle indemnity and/or medical benefits on a claim) in certain circumstances. Bulletin WC 46-778
North Carolina amended its regulations pertaining to Workers' Compensation and adoption of electronic filing requirements. 04 NCAC 10A .0101, .0108 .0404, .0405, .0502, .0609, .0609A, .0610, .0613, .0617
Ohio adopted a new Worker's Compensation rule regarding "other states coverage policy (OSCP)" establishing standards and requirements for optional coverage for business that send employees out of state for their jobs. Rule 4123-17-24
Pennsylvania adopted the 2015 Workers' Compensation Special Schedule "W" filing requirements. 2015 Special Session W - Instructions
South Dakota enacted a law pertaining to workers' compensation, regarding concurrent employment and earnings calculations. HB 1084
Texas amended its regulations regarding income benefits for Workers' Compensation. 28 TAC s 129.3
Virginia amended its regulations regarding the manual of rules, classifications and rates for writing Workers' Compensation Insurance. Order No. 12004
Wisconsin sent a letter to claims handling offices of workers compensation insurers regarding the transfer of certain litigated adjudicatory functions of the Worker's Compensation Division to the Department of Administration's Division of Hearings and Appeals. Insurance Letter 507
ASSISTANCE WITH PRODUCT INNOVATIONS
Whether you have exclusive programs or are thinking of modifications to standard forms like ISO or AAIS we can help for any line of business. Our knowledgeable staff can assist you and your staff with program or form revisions. Product changes involve various steps, we can help with:
- Marketplace research
- Comparison of forms
- Drafting forms for new programs
- Drafting forms for product innovations like ride sharing, drones, cyber, sharing economy, etc.
- Tweaking forms or endorsements to provide additional options
- Rephrasing to meet Readability requirements
- Reviewing your initial drafts against state checklists, state requirements, our past experience and the NAIC Products Requirements Locator
- Providing filing packets to regulators
- Submitting filings through SERFF
Please click here for a brief overview of our Product Development and Drafting services.
Feel free to contact me so we may discuss a practical approach.
Joe Bieniek
816.512.2832
Joe.Bieniek@FirstConsulting.com
AFFORDABLE STATE FILINGS
First Consulting can help with your product filings. Whether you have form changes, rate changes or are adopting/delaying bureau filings, or are expanding to new lines of business or additional states, we can help with a flexible and cost-effective approach.
Filings can be made on our SERFF account or an insurance company’s account.
We provide a secured online facility for you to obtain a summary of your filings.
Please click here for a brief overview of our filing service.
Please contact us for additional information or a no-obligation quote.
Joe Bieniek
816.512.2832
Joe.Bieniek@FirstConsulting.com