Property and Casualty News
February 2022
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!
AGENT / PRODUCER LICENSING AND APPOINTMENT
California's Department of Insurance reminds all carriers, producers, independent and public adjusters of required reporting of change in background information. The change in background information must be reported to the Producer Licensing Bureau within 30 days of the date the change in background information is known. This applies to both resident and non-resident licensees. Licensing Notice dated February 3, 2022
ARBITRATION
Louisiana's Insurance Commissioner provides updated guidance that mandates the inclusion of newly enacted appraisal provisions for all residential property insurance policies effective January 1, 2022. Arbitration provisions that attempt to deprive Louisiana courts of jurisdiction or venue are not permitted in insurance policies delivered or issued for delivery in Louisiana. Directive 173 (Revised and Reissued)
AUTOMOBILE INSURANCE
Michigan's Insurance Director updates carriers regarding the process for payment of the Michigan Catastrophic Claims Association (MCCA) refund. Bulletin 2022-06-INS
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
Missouri's Insurance Department notifies all insurers of termination and placement of insurance coverage practices. There is uncertainty in the marketplace regarding the consumer consent required to be obtained by the new carrier to issue and bind coverage after coverage is discontinued by the terminating carrier. An insurer or producer must show affirmative consent of the consumer to enroll a consumer in insurance coverage. Bulletin 22-01
CREDIT FOR REINSURANCE
Arkansas revised its Credit for Reinsurance, Rule 65. This revision is necessary for Arkansas to meet national accreditation standards. It provides guidelines where unauthorized reinsurers may qualify to post reduced collateral to satisfy state credit for reinsurance standards. Rule 65
CREDIT INFORMATION
Washington adopted a rule that temporarily bans the use of credit history to determine personal insurance rates, premiums, or eligibility for coverage. This applies to private passenger automobile coverage, renter's coverage, and homeowners coverage. This rule remains in effect for three years following the Covid-19 emergency declared by the U.S. President or the Washington Governor's proclamation terminates. Rule R 2021-07
CYBERSECURITY
Louisiana's Insurance Commissioner reminds carriers of the requirements of the Insurance Data Security Law. Bulletin 2021-04 (REVISED AND REISSUED 01-24-22}
FILINGS: PROPERTY / CASUALTY
Kentucky's Department of Insurance amends a regulation that provides filing procedures for rates and supplementary rating information for property, casualty, surety, title, and mortgage guarantee insurance. Certain checklists are removed. 806 KAR 13:150
Louisiana's Department of insurance is streamlining the form filing process for five additional lines of commercial insurance. The certified approval process requires insurers to certify that their new forms comply with all applicable laws, regulations, and directives. Previously, these forms were submitted to the Department for approval prior to taking effect. The commercial insurance lines now eligible for certified approval are environmental pollution liability, commercial excess and commercial umbrella, directors, and officers (management liability), employment benefit plan/fiduciary, and commercial flood (not to include NFIP). Press Release Dated 2/3/2022
MISCELLANEOUS
Arkansas Insurance Department announces its intent to adopt the amendments, revision or modifications to the Accounting Practices and Procedures Manual as of March 2021 published by the NAIC. The effective date for domestic reporting entities is the annual statement as of December 31, 2022, to be filed with the insurance department on or before March 1, 2023. Bulletin 1-2022
Michigan's Insurance Director issued required periodic updates of municipalities participating in the Fire Insurance Withholding Program. Edition 140
PERSONAL LINES INSURANCE
Colorado's Division of Insurance issued guidance concerning the communication of certain coverage limits by Homeowners' Insurance Companies to Policyholders that experienced a loss resulting from the Boulder County Fires. Bulletin B-5.44
PROPERTY INSURANCE
California's Department of Insurance announces the 2022 annual notice to residential property insurance companies, licensed independent insurance adjusters, agents, and brokers. This annual notice describes the most significant California laws pertaining to property insurance policies, including those related to a state of emergency. Every residential property insurance company is required to provide a claimant with a copy of the most recent notice no later than 15 days from receipt of the claim. Notice dated February 9, 2022
REINSURANCE
Louisiana's Commissioner of Insurance published a list of reciprocal jurisdictions from which reinsurers may apply for eligibility for the purpose of eliminating reinsurance collateral requirements under specified conditions. Advisory Letter 2021-06
REPORTS - DATA CALLS & OTHER REPORTS
Arkansas' Insurance Department notifies P&C insurers, surplus line insurers, and farmers' mutual aid associations of a required data report each year by April 1. Carriers must provide certain earthquake coverage market analysis information, including interrogatories and in force exposures by county. Bulletin 2-2022
California's Department of Insurance directs a 2022 data call for workers' compensation terrorism exposure data, including policy counts, payroll, and terrorism premium information. WCIRB Bulletin 2022-02
SERVICE CONTRACTS / WARRANTY INSURANCE
Wisconsin SB 655 amends provisions concerning motor vehicle service contracts and vehicle protection product warranties. SB 655
SURPLUS LINES
Alaska's Insurance Department issued a list of Eligible Surplus Lines Insurers in the state. Bulletin B22-03
TITLE INSURANCE / AGENTS
Virginia's Bureau of Insurance informs title licensed and registered settlement agents that "split settlements" are not authorized under Virginia law and regulations. Administrative Letter 2022-01
WORKERS' COMPENSATION
Idaho published updated workers' compensation mileage and meals rates. These rates are required to be reimbursed by employers for injured employees for their travel to and from medical and rehabilitation providers. WC Notice of Mileage Rate dated January 18, 2022
Kentucky adopts a new regulation regarding the procedure to become an approved Electronic Data Interchange (EDI) vendor, an entity that formats electronic data for transmission to the Department of Workers’ Claims, transmits electronic data to the Department of Workers’ Claims, and responds to any technical issues related to the content or structure of an electronic data interchange file. 803 KAR 25:165
Kentucky's Department of Workers' Claims amends an administrative regulation that sets forth standards and procedures for email notification of cancellation or removal of specific business workers' compensation coverage. This applies to persons registered in the Worker's Claims Insurance Coverage Look-up database. 803 KAR 25:185
New York's Workers Compensation Board announces it is replacing certain paper systems with a new online business information system named OnBoard. The roll out of the new system will be in three phases, with the first phase in March and the last phase in May 2022. Bulletin WC 046-1497
Pennsylvania's Bureau of Workers' Compensation published the first quarter update to the Worker's Compensation Medical Fee Schedule. Covid-19 billing codes are added to the fee schedule as they become available. New 2022 HCPCS codes have been added and deleted ones have been removed. WC Medical Fee Schedule 2nd Update January 2022