Property & Casualty News

April 2018

Welcome to our latest newsletter!  As a thought leader in the Insurance Industry for over 48 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!


AGENT / PRODUCER CONTINUING EDUCATION

Alabama amended its code to eliminate extensions for complying with continuing education requirements.     HB125

Nebraska amended its law to change continuing education requirements.     LEGISLATIVE BILL 486

New Mexico amended its regulation regarding continuing education requirements by revising definitions, the requirements for licensees and the number of continuing education hours required.     13.4.7.7 NMAC+


AGENT / PRODUCER LICENSING AND APPOINTMENT

Alaska issued a bulletin advising that the renewal window for licensees and registrants was extended from 60 to 90 days effective February 9, 2018. Any licensed or registered entity may renew their credentials up to 90 days prior to the respective expiration date.     Bulletin B 18-03

California issued a reminder of the reporting requirements for administrative actions and criminal convictions for all licensees and applicants.     Licensing Notice dated February 15, 2018

South Dakota revised certain licensing renewal procedures for business insurance producers.     House Bill 1033


AUTOMOBILE INSURANCE

Iowa amended its regulation regarding the reduction of the amount of a plaintiff's recovery due to failure to wear a motor vehicle safety belt or harness. The possible reduction in the amount of recovery was increased from a maximum of 5% to 25% of the damages awarded after any reductions for comparative fault.     SF 2135

Nevada amended its regulations regarding new minimum vehicle liability requirements, effective July 1, 2018.     SB 308


CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES

The District of Columbia issued a notice regarding notice of cancellation and nonrenewal for property and casualty insurers.     Notice dated March 9, 2018


CAPTIVES

Vermont amended its law to require that specified captive insurance companies submit to the Commissioner an annual report of its financial condition by March 15 of each year. The previous due date was in February of each year.     House Bill 694


CERTIFICATE OF AUTHORITY FILINGS

Vermont issued a bulletin regarding revised criteria for companies seeking authorization to transact insurance in the state     Bulletin 43

Wyoming amended regulations relating to applications for certificates of authority filings.     SF0009


CONFIDENTIALITY / PRIVACY

Alabama enacted the Alabama Data Breach Notification Act of 2018 to require entities to provide notice of breach of security.     SB318

Nebraska amended its law to require additional reasonable security procedures and practices regarding personal information. Entities that own, license, or maintain computerized data that include personal information about a resident of Nebraska must maintain certain security procedures and practices.     LEGISLATIVE BILL 757


CORPORATE GOVERNANCE

Washington approved a bill regarding the penalty for failing to file the corporate governance annual disclosure when due.     Senate Bill 6059 Sec. 7

Wyoming enacted legislation to create the Insurance Corporate Governance Annual Disclosure Act effective July 1, 2019.  No insurer or insurance group will be required to file the disclosure required by this act until 2020.     W.S. 26-29-239; 26-54-101-26-54-108


IMPORTANT CGAD ALERT!
Is your domicile state one of the nine requiring your
Corporate Governance Annual Disclosure (CGAD)
report for the first time in 2018? Click here to learn more!


DISASTER / CATASTROPHIC EVENT

Ohio issued a bulletin that pertains to all insurance companies requesting that they allow their insureds impacted by the state of emergency declared on February 24, 2018 to defer premium payments coming due and extend any and all provisions imposing time constraints within which insureds must take certain action.     Bulletin 2018-01

Rhode Island declared a storm that occurred on March 2, 2018 a catastrophic event. As a result, the emergency adjuster and motor vehicle damage appraiser licensing statutes were triggered.     Industry Alert 2018-1 and Bulletin 2005-14


DISCLOSURE REQUIREMENTS

The Securities and Exchange Commission published interpretive guidance to assist companies in preparing disclosures about cybersecurity risks and incidents.     Interpretive Guidance dated February 26, 2018


FINANCIAL REGULATION

Wyoming amended insurer requirements pertaining to annual audited financial reports to conform to model regulations and added internal audit function requirements effective January 1, 2019.     SF0008


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MISCELLANEOUS

South Dakota amended its law to specify when a domestic mutual insurer may reorganize or convert into a corporation with capital stock.      House Bill 1042


PROPERTY INSURANCE

Puerto Rico established guidelines regarding the term for delivery of property insurance policies.     Ruling Letter CN-2018-235-D


RATEMAKING

California issued a notice regarding federal corporate income tax changes. The reduced federal corporate income tax rate lowers the maximum allowable rates for all property and casualty insurance lines subject to Proposition 103. The notice specifies that excessive property and casualty insurance rates shall not remain in effect and any insurer with excessive rates must file a rate change application to seek an appropriate insurance rate reduction.     Notice dated March 16, 2018


REPORTS - ANNUAL / QUARTERLY STATEMENT

Arkansas advised that the effective date for the prescribed use of the Accounting Practices and Procedures Manual of March, 2018 shall be for the Annual Statement as of December 31, 2018, to be filed on or before March 1, 2019.     Bulletin 2-2018


ASSESSMENTS AND MOCK EXAMS
Have you taken a hard look at your processes? 
Are you ready for your next Market Conduct Exam?  
Click here to learn how we can help you!


SURPLUS LINES

Virginia amended its regulations regarding licensing of surplus lines insurers effective July 1, 2018.     SB 542


TITLE INSURANCE / AGENTS

Idaho amended its law regarding reimbursement or discount of escrow fees or title insurance premiums in certain instances.     HB 519

Maryland issued a bulletin regarding earnest money deposits held by title insurance producers.     Bulletin No. 18-04


WORKERS' COMPENSATION

North Carolina issued a circular letter concerning data related to terrorism risk and workers' compensation coverage. The letter specifies that carriers do not need to take action with regard to the NAIC Data Call. To fulfill the obligation of carriers, the North Carolina Rate Bureau, in cooperation with NCCI, provided the data through NCCI.     WC Circular Letter C-18-7

Texas issued a bulletin regarding revised classification relativities and instructions on making rate filings.     Bulletin B-0004-18

Texas made an additional amendment to the new plain language notice. The amendment provides insurance carriers with an option to communicate to injured employees when they are making a reasonable assessment of impairment rating.     New Amendment to Plain Language Notice 3b and Delayed Effective Date


HELP WITH ANALYZING YOUR POLICIES, CLAIMS OR PROCEDURES

First Consulting can help you analyze your compliance results and help senior management to know what your actual results are.

We can help review your policy files, claims files, complaint logs and procedures. We provide:

  • Mock Market Conduct Exams
  • Risk Assessments
  • MGA or TPA Audits
  • The preparation you may need for a market conduct exam

We have the ability and knowledge to conduct a review of your book of business or your vendors.

Please click here to learn more or give me a call.

As a Certified Risk Manager and an Accredited Insurance Examiner I’d like to help you verify your compliance results.

Joe Bieniek, CPCU, AIE, CRM, CCP, CIC, ARC, AMCM, AIS, AU, AINS
816.512.2832
Joe.Bieniek@FirstConsulting.com


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Sean Cox
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Sean.Cox@FirstConsulting.com