Property & Casualty News
July 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
Rhode Island amended regulations to require licensed adjusters to complete biennial continuing education. 230-RICR-20-50-4.1
AGENT / PRODUCER LICENSING AND APPOINTMENT
Delaware enacted amendments to its code to reinstate language which will permit insurance agents to issue checks in time-sensitive situations without requiring qualification as a claim adjuster. HB 379
ARTIFICIAL INTELLIGENCE
Nebraska's Insurance Department issued guidance for insurers on the use of Artificial Intelligence in accordance with the NAIC 2020 Principles of Artificial Intelligence. Guidance Document IGD-H1
New York published its position on insurers using Artificial Intelligence Systems and External Consumer Data and Information Sources in Insurance Underwriting and Pricing. Circular Letter 7
AUTOMOBILE INSURANCE
New York amended its regulation regarding the underwriting inspection requirement for private passenger automobiles to allow an insurer to waive the right to an inspection. Insurers should submit a revised plan of operation that specifies automobiles that are subject to inspection and those for which the insurer is waiving inspection. 11 NYCRR 67.0
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE
Delaware adopted amendments to its code requiring that notice of cancellation for property insurance (except for nonpayment of premium) must be delivered by certified mail or USPS Intelligent Mail. SB 200
DISASTER / CATASTROPHIC EVENT
Iowa published a bulletin providing a summary of its expectations when a disaster has been declared. General expectations are outlined including, among other items, a grace period for cancellation, and claim reporting and resolution. Bulletin 2024-03
DISCLOSURE REQUIREMENTS
California adopted a bill requiring any solicitation for a consumer financial product or service to include a certain disclosure, on the front of the envelope, in no less than 16 point bold type. SB 1096
FILINGS: PROPERTY / CASUALTY
Connecticut published a bulletin to notify companies that claims-made insurance policy forms will now require a complete filing review and are removed from the list of exempted commercial lines of insurance. The bulletin includes an updated list of exempt forms. Companies are reminded that they must continue filing all commercial forms, rates and rules and use the exempt designation in the filing type field. Companies are further reminded that market conduct action will be taken on non-compliance. Bulletin PC 63-24
HOLDING COMPANIES
New York amended its Holding Company law to impose an annual group capital calculation requirement and exempt certain entities from filing it, among other revisions. 11 NYCRR 82.1
South Dakota amended its Holding Company rule concerning the group capital calculation filing. Rule 20:06:09:49 +
MARKET CONDUCT
California published a bulletin notifying all domestic insurers of the provisions of Sec 706.7 of the California Insurance Code and specifying those states which will be given "reciprocal" status. Insurance Commissioners in those jurisdictions are asked to notify California of violations by domestic insurers. Bulletin 2024-4
MISCELLANEOUS
Maryland published a bulletin listing laws enacted by the 2024 legislature. The bulletin summarizes relevant legislation and advises companies may obtain copies of specific laws at mgaleg.maryland.gov. Bulletin 24-15
MISCELLANEOUS PROPERTY / CASUALTY
Pennsylvania enacted a new pet insurance law. HB 660
PERSONAL LINES INSURANCE
New Hampshire made changes in its Travel Insurance regulation. Regulation Ins. 4703.01 +
PROPERTY INSURANCE
California published a press release detailing the next steps in the Commissioner's Sustainable Insurance Strategy to expand coverage options in areas of high wildfire risk. The goal of the department is to increase the availability of property insurance. The release included a map showing where increased insurance coverage is needed. Press Release 6-12-2024
REPORTS - DATA CALLS & OTHER REPORTS
Alabama published a bulletin announcing a data call to provide updated performance metrics for losses related to Hurricane Sally. Responses are due by August 23, 2024. All responses will be treated as confidential by law and privileged. Bulletin 2024-03
Florida published a notice providing answers to frequently asked questions about the 2024 catastrophe reporting form. The purpose of the reporting is to provide valuable data about the impact of hurricanes and other events. An email address or phone number is provided for those who have additional questions. Notice Dated 6-3-2024
Illinois published a bulletin reminding insurers that it is participating the NAIC Climate Risk Disclosure Survey. Responses for the 2023 are due August 30, 2024, and may be submitted online. Bulletin 2024-13
New Jersey's Insurance Commissioner notified licensed insurers in New Jersey who collected more than $100 million nationwide in direct written premium in 2023 that their Climate Risk Disclosure Survey is due by August 30, 2024. Bulletin 24-09
SURPLUS LINES
New Jersey notified licensed producers with Surplus Lines Authority that copies of binding authority agreements and amendments must be filed electronically as of July 11, 2024. Previously, the agreements could be filed hard copy and an acknowledgement was issued. Notice dated July 11, 2024
New Jersey's Insurance Department published an updated list of Active Surplus Lines Insurers. This list contains identification of Domestic, Foreign and Alien Surplus companies. Notice dated June 12, 2024
Pennsylvania amended its allowable surplus lines fees for the placement of a surplus lines policy in addition to a commission received from a surplus lines insurer subject to certain requirements. HB 2096
TRADE PRACTICES
North Carolina passed a law allowing certain insurance trade practices related to gifts, rebates and services offered for free or for less than fair market value. This law also places a cap on insurance referral fees paid to non-licensed persons. SB 124
Rhode Island passed an amendment making it an unfair trade practice for an insurer to refuse to honor a "direction to pay" executed by an insured or claimant indicating they wish the insurance company to directly pay the property damage benefit to the restoration company. The law contains other changes. HB 7507
UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE
Louisiana amended its uninsured motorist law to require that auto liability policies offer uninsured motorist coverage at least equal to the BI limits of the policy. SB 499
WORKERS' COMPENSATION
Alaska established a workers' compensation stay at work program. Among other changes, the presumption will be compensability for claims related to post-traumatic stress disorder. The department will require status reports on all reemployment benefits provided for the previous year. The report will be due no later than October 1 of each year. SB 147
Connecticut published notice that changes have been made to certain Workers Compensation forms. Changes include the ability to track firefighter cancer claims and the ability to collect an email address on the hearing request form. Memorandum 2024-04
Hawaii enacted law to expedite the treatment of serious injuries to the cervical or lumbar spine that could result in paralysis. The bill allows for certain medical services to be performed without a treatment plan during the first 60 days after an injury. HB 1944
Nevada Workers' Compensation Section of the Department of Business and Industry announced that the Workers' Compensation Claim Activity Report or Statement of Inactivity is due by September 2, 2024. This applies to all private carriers, self-insured employers and associations of self-insured employers. Instructions are contained in the Notice. Notice dated July 15, 2024
Nevada's Administrator of Industrial Relations adopted a new Actuarial Annuity Table used to calculate lump sum payments to permanently partially disabled insured workers. Notice dated June 14, 2024
New York updated its 'Official New York Workers' Compensation Durable Medical Equipment Fee Schedule’. Bulletin WC 046-1695
Oregon Workers' Compensation Division notified self-insured employers about the base rates and methods used for determination of premium assessment effective July 1, 2024, through June 30, 2025. Bulletin 392