Property & Casualty News
July 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!
ADJUSTERS
California issued a notice regarding changes to its public insurance adjuster educational objectives and independent insurance adjuster examination objectives. Notice Dated June 12, 2023
AGENT / PRODUCER CONTINUING EDUCATION
Maryland amended its law to require licensed producers who sell property and casualty insurance to obtain at least two hours of continuing education in flood insurance. Regulation .03 under COMAR 31.03.02
AGENT / PRODUCER LICENSING AND APPOINTMENT
Alabama made updates to its regulation governing producer licensing, including the removal of the service representative license and the removal of prelicensing education requirements. 482-1-147
Idaho published a bulletin announcing that the department will allow applicants for a resident producer license to request a temporary license pending receipt of a criminal background report. This action is needed due to the temporary unavailability of electronic fingerprinting. BULLETIN NO. 23-06
Maine enacted a law allowing producers who are licensed to sell property, accident and health, sickness, or personal lines insurance to also sell pet insurance. HP 814
ARBITRATION
Oklahoma's Dispute Resolution Act was modified to provide confidentiality for certain items such as discussion of any proposed settlement agreement and items agreed upon or disputed, among others. SB 97
AUTOMOBILE INSURANCE
Hawaii enacted legislation amending peer-to-peer car sharing statutes, making several technical corrections, and increasing the required minimum limits to be no less than four times the amount of the basic liability and personal injury coverage required in the state. SB 1502
Rhode Island revised its Unfair Claims Practices Act to add a chapter providing for the appraisal of damaged motor vehicles when the insurer and the insured cannot agree on the amount of the loss. HB 5855
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE
Texas changed certain requirements concerning cancellation or nonrenewal of a property and casualty policy. For a personal auto policy, the written notice of cancellation must be sent to the insured no later than 60 days (was 30 days previously) before the effective date of cancellation on any 12-month anniversary of the original effective date of the policy. The 60 day notice is also required for nonrenewal for specified lines of insurance. This law is effective for policies delivered or renewed on and after January 1, 2024. HB 1900
CERTIFICATES OF INSURANCE
Georgia published a Frequently Asked Questions (FAQ) document directed to insurance agents. The purpose of the FAQ is to clarify requirements, usage, and limitations of certificates of insurance in the state of Georgia. BULLETIN 23-EX-9
COMMERCIAL LINES INSURANCE
Nevada increased the maximum amount of noneconomic damages a plaintiff may recover against a health care provider for professional negligence from $350,000 to $750,000 over time. AB 404
CONFIDENTIALITY / PRIVACY
Montana enacted the Genetic Information Privacy Act. The law requires an entity to provide consumer information regarding the collection, use and disclosure of genetic data. This law also relates to biometric privacy. SB 351
Nevada enacted a law to limit the sharing, use and selling of personal consumer health data, biometric and genetic data by certain entities without written consumer authorization, among other things. SB 370
CYBERSECURITY
Pennsylvania enacted an Insurance Data Security law. HB 739
FLOOD INSURANCE
New Jersey approved changes to law requiring sellers of real estate and landlords to make certain disclosures regarding whether property is located in a flood area. SB 3110
FRAUD / ANTI-FRAUD
California published a bulletin explaining how the department's SIU Compliance Program works, how insurers are selected for review and the timing of the process. SIU E-Blast 2023-15
Delaware adopted legislation increasing the annual assessment, required of all insurers doing business in the state, used to fund the Fraud Prevention Bureau. HB 146
Louisiana enacted legislation amending the Louisiana Automobile Theft and Insurance Fraud Prevention Act. Amendments clarify that the act is intended to combat fraud whether committed by or on behalf of a claimant, insured or insurer. It also specifies that it covers motor vehicle insurance fraud, property insurance fraud, health insurance fraud, or other forms of insurance fraud. HB 281
GENERAL LIABILITY INSURANCE
Rhode Island raised the minimum recovery in a civil action for a wrongful death from $250.000 to $350,000 effective January 1, 2024. SB 1056
GUARANTY ASSOCIATION
Illinois enacted legislation amending certain provisions of its Guaranty Fund law, including a limitation on the amount payable on claims under a cybersecurity insurance policy, when arising out of a single insured event. HB 47
LEGAL EXPENSE INSURANCE
Arkansas issued a bulletin providing notification that the Arkansas Legal Insurance Act has been repealed, meaning that the state will no longer regulate prepaid legal insurance. Bulletin 11-2023
MISCELLANEOUS
Florida enacted legislation providing for the regulation of Collateral Protection Insurance. The act pertains to collateral protection of a lender's interest in commercial property. HB 793
Florida enacted legislation amending a number of insurance statutes including permitting insurers to file personal lines residential property insurance rating plans which consider certain windstorm mitigation standards. SB 418
Texas enacted the Data Privacy and Security Act relating to consumer data protection. HB 4
PROPERTY INSURANCE
Louisiana enacted amendments to its policyholder bill of rights and unfair claim settlement practices law to require that an insurer maintain first party property claim records and make those records available to its policyholder unless otherwise privileged. SB 106
REPORTS - DATA CALLS & OTHER REPORTS
New Jersey announced it is conducting a Climate Risk Disclosure Survey for Reporting Year 2022. Responses are due August 31, 2023. Bulletin 23-06
SURPLUS LINES
Connecticut amended its statute concerning surplus lines insurance policies. Amendments require specified documentation of a diligent effort to first obtain coverage from an authorized insurer. HB 6621
TITLE INSURANCE / AGENTS
New Mexico issued a bulletin informing title insurance carriers that the law has been changed to extend the interval between hearings for premium rates and other title insurance matters to every three years. Bulletin 2023-015
TRADE PRACTICES
Nevada increased certain civil penalties for commission of a deceptive trade practice. AB 373
TRAVEL INSURANCE
Nevada amended the statute governing travel insurance to align it with the NAIC Travel Insurance Model Act. AB 216
UNCLAIMED PROPERTY
Nevada revised provisions of its Uniform Unclaimed Property Act. AB 55
UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE
Delaware enacted legislation concerning underinsured motor vehicle coverage. SB 139
WORKERS' COMPENSATION
Colorado issued a notice announcing maximum workers compensation benefit rates for the year beginning 7-1-2023. WC Memo and Order 7-1-2023
Iowa published updated annual rate information for workers compensation benefits and mileage reimbursement rates. Notice Dated 6-8-2023
Maine amended its Workers' Compensation law to allow fronting companies to be established. HP 886
Maine amended its Workers' Compensation Law to streamline the process for individuals to obtain a predetermination of independent contractor status. SP 728
Nevada now allows a stress related injury to be compensable under industrial insurance including a mental injury affecting a first responder under certain circumstances. AB 410
New Jersey's Department of Banking and Insurance advised every carrier providing workers' compensation insurance in the state that it is required to pay 1% of its net direct written premium to maintain funding into the Workers' Compensation Security Fund. NJ PLIGA Bulletin 2023-005
North Dakota's Workforce Safety and Insurance Commission published the increased weekly workers' compensation benefit levels for minimum and maximum weekly benefits. WSI Notice of Weekly Benefit Levels dated July 1, 2023
Tennessee published its Workers' Compensation weekly compensation rates, death benefits, funeral expenses, and medical benefits for the period July 1, 2023, through June 30, 2024. WC Notice dated June 12, 2023