Property & Casualty News
August 2024
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
Maryland published a bulletin notifying all public adjusters of new laws, which become effective October 1, 2024, including a provision for a free-look privilege for any public adjuster contract, the prohibition against soliciting a client between the hours of 8 PM and 8 AM, and the requirement to notify the commissioner of any contracts entered into within 72 hours after a claim. Bulletin 24-18
AGENT / PRODUCER LICENSING AND APPOINTMENT
Maryland published a bulletin notifying companies and producer license applicants of HB 0265/SB 0336 which removes the education and experience requirements for producers required to pass a licensing examination. Beginning 10/01/24, applicants are no longer required to complete an approved program of study before taking the examination. Bulletin 24-19
ARTIFICIAL INTELLIGENCE
Arkansas published a bulletin intended to notify insurers doing business in the state of its expectation that companies comply with all laws and regulations when utilizing artificial intelligence. This includes laws dealing with unfair trade practices and unfair discrimination. Bulletin 13-2024
Michigan issued a bulletin to all insurers doing business in the state explaining its expectations that companies comply with applicable laws and regulations when utilizing artificial intelligence. Bulletin 2024-20-INS
New Hampshire enacted a law that established the crime of fraudulent use of deepfakes and a cause of action for fraudulent use of deepfakes using digitally altered media. HB 1432
Virginia Bureau of Insurance published a letter setting forth the expectations as to how insurers will govern and manage the risk from the development, acquisition and use of AI technologies, including AI Systems. Administrative Letter 2024-01
West Virginia Insurance Commissioner issued a bulletin reminding insurers that decisions or actions impacting consumers that are made or supported by Artificial Intelligence (AI) Systems must comply with state laws and rules. Bulletin 2024-06
AUTOMOBILE INSURANCE
Delaware adopted the Automobile Insurance Premium Refunds Act requiring, among other things, that when an auto policy is cancelled by the insured, any unearned premium must be refunded within 30 days. 611 s 1.0 +
Louisiana published a bulletin explaining recent changes to the statutory provisions for issuance of uninsured and underinsured motorist coverage for commercial auto insurance policies. If the insured does not select uninsured motorist coverage on the form promulgated by the commissioner, it will be presumed that there is no UM coverage. Bulletin 2024-02
Maine published a bulletin clarifying the impact of the updated statutory definition of reportable accident. In 2023, the definition of reportable accident was increased from $1,000 to $2,000. This means that accidents with apparent damage of less than $2,000 are not reportable unless they result in bodily injury or death. Bulletin 480
CREDIT FOR REINSURANCE
New York amended its credit for reinsurance regulation. 11 NYCRR 125.4
CYBERSECURITY
New York State Department of Financial Services issued an Industry Letter regarding the CrowdStrike Global Outage and encouraging regulated entities to be on high alert for suspicious emails, calls and in-person contacts purporting to be a vendor working on this issue. Industry Letter of July 19, 2024
DISASTER / CATASTROPHIC EVENT
Texas Department of Insurance declared a weather-related catastrophe for personal and commercial claim processing as a result of Hurricane Beryl. As a result, deadlines for processing claims are extended by an extra 15 days in the affected counties. Commissioner Order 2024-8743
FILING REQUIREMENTS / PROCEDURES
California published a bulletin highlighting revisions to the rate review process. The department's goal is to increase the transparency and speed of processing rate change filings. Changes include, among other items, reviews within 60 days of the public notice date, with up to two possible 30-day extensions as needed. Bulletin 2024-7
Florida adopted a regulation requiring an attestation of compliance with Section 655.0323(1) and (2) FS. The regulation includes a form for completion of the attestation, available on the office's website and is due by July 1 each year. FAC Rule 69U-100.323
GUARANTY ASSOCIATION
Illinois amended its Guaranty Association Act to provide that a policy obligation that is assumed or allocated through a merger or similar action shall not be construed to create fund coverage if none existed at the time of assumption or allocation. HB 4367
MARKET CONDUCT
Illinois amended the Automatic Contract Renewal Act. Any contract that includes a free trial or promotional period that lasts 15 days or longer, and includes an automatic renewal, must provide notification to the consumer at least three days before the cancellation deadline and send notice in a manner with which the consumer is familiar. SB 2764
MISCELLANEOUS
Ohio passed a law allowing a pet insurer to exclude coverage for pre-existing conditions if certain disclosures are placed in the policy. Other guidelines regulating the sale and delivery of pet insurance are also included. SB 175
Ohio passed a law requiring a corporation to appoint a statutory agent and include the address of the agent's primary residence or usual place of business in Ohio. SB 98
PROFESSIONAL LIABILITY INSURANCE
New Hampshire passed a law prohibiting physicians from performing gender reassignment surgery on an individual under 18 years of age. The minor or parent can bring a legal action against the physician for violation of the law. HB 619
REINSURANCE
North Carolina's Reinsurance Facility announced new ceding expense and claim expense allowances effective in October 2024. Circular Letter RF-24-13
SURPLUS LINES
New Jersey's Insurance Department issued a list of active foreign and domestic Surplus Lines Insurers. Notice dated August 1, 2024
TRADE PRACTICES
Pennsylvania passed a law allowing for exemptions to the prohibition against having insurers or producers provide a rebate or inducement for anything over a certain dollar amount for the purchase of insurance and clarifies what is unfairly discriminatory. SB 1092
TRAVEL INSURANCE
Colorado published a bulletin providing guidance on travel insurance filing requirements, updated as a result of the passage of HB 24-1060. The bulletin provides, among other things, guidance on submitting filings that combine property casualty and accident and health coverages and provides a link for additional resources. Bulletin B-5.49
WORKERS' COMPENSATION
California's Workers Compensation rating bureau published a bulletin informing companies it has updated the loss sensitive advisory plans for policies effective on or after 09/01/24. Plans are updated to reflect the latest available cost projections. Bulletin 2024-11
Delaware enacted amendments to its bankruptcy act, changing certain exemptions and ensuring that workers compensation benefits shall not be assignable and all compensation or claims are exempt from claims of creditors. HB 318
Minnesota's Workers Compensation Insurers Association announced updates to the assigned risk rates effective 11/01/24. The rates are revised in response to revisions in the voluntary market pure premium base rates. Circular Letter 24-1847
New York's Workers' Compensation Board announced it will expand the number of claims it indexes in order to provide clarity and promote efficient resolution of workers' compensation claims. Bulletin WC 046-1704
North Dakota announced the new maximum and minimum weekly benefit levels together with other benefits. Notice of Weekly Benefit Levels 2024
Oklahoma created the Workers' Compensation Assigned Risk Insurance plan. The plan will ensure coverage of applicants unable to obtain workers' compensation insurance through ordinary methods. Regulation 365:15-1-3.3
Wisconsin Compensation Rating Bureau (WCRB) notified its members of a proposal to change class code rates and expected loss ratios (ELRs) from two to three decimal places will be made with the October 1, 2026, rate filing. Insurers are asked to verify their systems can accommodate a three decimal code rate and ELR. Circular Letter 675