Property & Casualty News
January 2023
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 Producer Licensing Bureau issued an amended notice regarding a new law which requires licensees to include their license number on emails beginning January 1, 2023. Revised Licensing Notice dated December 22, 2022
California's Producer Licensing Bureau reminds individuals who sell credit insurance they must be licensed as a credit insurance agent or endorsed by their credit insurance agency and organization. Instructions as a result of a new law passed in 2022 are provided. Licensing Notice dated December 16, 2022
AUTOMOBILE INSURANCE
New York amended requirements for a policy to include supplemental spousal liability insurance to persons who are insured for loss resulting from the ownership, maintenance, and use of a motor vehicle, unless declined in writing. AB 1029
South Carolina's Director of Insurance informed carriers transacting private passenger automobile insurance they may receive a check representing their portion of the uninsured motorist distribution based upon its 2022 market share. The Director requests carriers to account for the funds as other income in accordance with NAIC statutory guidance. South Carolina drivers seeking to drive uninsured must pay a $550 annual fee deposited into the Uninsured Motorist Fund. Funds are disbursed annually among insurers writing this coverage. Bulletin 2023-1
CREDIT FOR REINSURANCE
District of Columbia amended its Law on Credit for Reinsurance Act of 1993 that were required for the District to maintain NAIC accreditation. 26A DCMR 2805
CYBERSECURITY
Kentucky's Insurance Commissioner clarified the reporting and handling of cybersecurity events under HB 474. Advisory Opinion 2023-01
DISASTER / CATASTROPHIC EVENT
California's Insurance Commissioner informed all property and casualty carriers providing homeowners and commercial property insurance in the wildfire areas of certain interpretations of policy language in adjusting claims. The insurance code and California courts address the "efficient proximate cause" doctrine, and carriers should not deny claims unless a diligent investigation regarding the cause of loss has been undertaken. Notice dated January 4, 2023
Colorado enacted a regulation protecting homeowners who have suffered a loss during a disaster, such as massive fires, from insurers that cause unreasonable delays in claim handling. The regulation identifies specific acts that may constitute unfair claim settlement practices. Emergency Regulation 22-E-21, 3 CCR 702-5
Georgia's Insurance Commissioner encourages insurers to promptly acknowledge receipt of all weather-related claims and make appropriate assignments for their investigation. Policyholders should continue to receive timely service and should not experience delays in receiving benefits they deserve based on the volume of claims filed with a particular insurer. Directive 22-EX-7
North Carolina's Commissioner of Insurance requested that carriers writing commercial and personal property and casualty coverage, that have customers residing in Moore County and the surrounding area, extend alternate methods of premium payments. These residents suffered extended power outages from December 3 through 8, 2022. Advisory dated December 6, 2022
DISASTER PREPAREDNESS
Louisiana's Insurance Commissioner advised all insurers and third-party administrators of updated requirements for catastrophe response plans. In addition, these plans must be filed with the insurance department no later than June 1, 2023. Bulletin 07-01 (Revised and Reissued)
Louisiana's Insurance Commissioner created a Catastrophe Claims Process Disclosure Guide. All property and casualty insurers must provide a copy of the guide to a policyholder whenever a state of emergency is declared by the Governor and the policyholder is asserting a claim for damages caused by the disaster event. Insurers may access relevant documents on the Department's website. Bulletin 2022-09
DISCRIMINATION
New York amended its executive law to prohibit discrimination based on citizenship or immigration status. AB 6328
FINANCIAL REGULATION
Kentucky's Insurance Commissioner advised all insurers authorized to do business in Kentucky of the reporting of Management's Report of Internal Controls over Financial Reporting to the Department. The Department provides its interpretation of certain statutes. Advisory Opinion 2023-02
HOLDING COMPANIES
Michigan amended its Holding Company law to add section 500.1325c. HB 6302
LIABILITY INSURANCE
Louisiana's Insurance Commissioner advised all authorized property and casualty carriers transacting insurance in Louisiana on how a liability insurance policy issued in Louisiana must address liability coverages that allow legitimate defense costs to consume any portion of the liability limits of the underlying policy. Specific details are included. Advisory Letter 2023-01
MISCELLANEOUS
Ohio passed a law requiring the Superintendent of Financial Institutions to establish a regulatory sandbox program where novel financial products and services can be tested on a temporary basis without obtaining a license or authorization that would otherwise be required. SB 249
PREMIUM TAX
New Hampshire's Insurance Department published 2022 Premium Tax Instructions for property and casualty companies and risk retention groups. Recommended filing method is online however, paper forms are accepted. Informational Notice dated December 30, 2022
PROPERTY INSURANCE
Virginia amended a rule extending the deadline for submitting filings to comply with "Rules Governing Standards for the Content of Dwelling Property Insurance Policies" and "Rules Governing Standards for the Content of Homeowner Policies". Filings must be submitted by May 1, 2023 for policies issued on and after December 31, 2023. Rule 14VAC5-341
REINSURANCE
New Jersey's Insurance Department published a list of reinsurers who qualify as "Certified Reinsurers". All insurers domiciled, licensed or eligible to write surplus lines insurance in New Jersey are allowed to take full credit for reinsurance ceded to the listed reinsurers when collateral is posted at the minimum required percentage until December 31, 2023. Notice dated January 1, 2023
REPORTS - DATA CALLS & OTHER REPORTS
Florida's Insurance Commissioner issued a Data Call Notice to carriers writing Personal and Commercial Residential Property Insurance. Companies are required to report personal and commercial residential property claims litigation data no later than March 1, 2023 for the calendar year 2022. Data Call Notice dated January 11, 2023
SURPLUS LINES
New Jersey published its list of eligible foreign, domestic, and alien surplus line insurers. Notice dated January 3, 2023
WORKERS' COMPENSATION
Alaska's Workers' Compensation Division published notice that the Workers' Compensation Medical Fee Schedule published January 1, 2023, will not take effect until January 29, 2023, due to unanticipated delays. The fee or charge for medical treatment or service provided from February 23, 2022 through January 28, 2023 shall be calculated under the Medical Fee Schedule effective January 1, 2022. Bulletin 23-01
Arizona's Industrial Commission announced operational changes in the Industrial Commission of Arizona Ombudsman Office. It will become part of the Legal Division and facilitate communications between unrepresented injured workers, employers, insurance carriers, adjusters, and third-party administrators. Notice dated December 20, 2022
Connecticut's Workers' Compensation Commission announced the mileage reimbursement rate payable for all travel expenses increased to 65.5 cents per mile. This is effective January 1, 2023 and matches the federal mileage reimbursement rate. Notice dated January 6, 2023
Indiana's Compensation Rating Bureau provided information on the Second Injury Fund assessment and the policy surcharge factor. Each carrier must calculate and apply its own factor to policies. Informational Circular 2022-07
New York passed a law providing that determinations by the Workers' Compensation Board shall not be given collateral estoppel effect in any other action or proceeding arising out of the same occurrence, other than the determination of the existence of an employer/employee relationship. SB 9149