Property & Casualty News
June 2016
We are celebrating over 25 years of providing selected items of current interest to our clients and friends. The items contained in this newsletter are derived from bulletins, regulations and legislative activity affecting the insurance industry. Please feel free to share this newsletter with others that may be interested. Contact our office for further details about any of the items contained in the newsletter.
AGENT / PRODUCER CONTINUING EDUCATION
New Hampshire enacted a new law providing that every two years, at least 60 days prior to the renewal date of their license, persons holding a producer license must be certified by the DOI as having completed 24 hours of continuing education instruction. HB 1340
AGENT / PRODUCER LICENSING AND APPOINTMENT
Arkansas issued a bulletin addressing 2016 Company Appointment of Producers - Renewals and Terminations. A company is required to annually review its records on appointed producers to decide whether it will renew appointments. Appointment renewal processing via NIPR will open on June 1 after 8:00 a.m. Central time and will end at 4:00 p.m. (Central) on June 30, 2016. If a company cannot renew via NIPR, it must contact the Department's License Division directly after June 1 with explanation as to why. Penalties (up to double) apply for any late payment of fees. Bulletin 6-2016
Maryland amended its law to require an insurance producer to file with the Commissioner a change in electronic mail address within 30 days of the change. Ins. s 10-117
AUTOMOBILE INSURANCE
Maryland now requires that personal and commercial automobile insurance cards reference the name of the insured, the period of coverage, and the vehicle covered. The Bulletin also prescribes standards for type and size of card. These requirements go into effect October 1, 2016. Bulletin 16-16
New York amended its insurance law in relation to enacting the "hazardous material transport security act". AB 234
Rhode Island issued a bulletin regarding the Auto Body Labor Rate Survey that identifies insurers and insurance groups that must participate in the 2016 survey. Bulletin 2016-1
Finally, compliance training developed for the insurance industry, by the insurance industry!
First Consulting offers online customizable Fraud, AML, OFAC and Privacy training for any size company. This training was designed for underwriters, call center personnel, claims handlers and other integral departments that work with customers and their data.
Click here to learn more.
CAPTIVES
Tennessee enacted a law that authorizes a foreign or alien insurer to become a domestic captive insurance company by complying with certain requirements. HB 2228
Vermont enacted legislation related to captive insurance companies, addressing protected cell conversion into an incorporated protected cell, sale/transfer/assignment of protected cells and protected cell conversion. HB 538
COMMERCIAL LINES INSURANCE
New Hampshire amended its regulations pertaining to boiler and pressure vessel inspections by enacting sections which define "Hot water supply boiler" and "Hot Water heater". Lab 1201.01 Dated 01-21-2016
Tennessee amended its consumer protection law relating to health clubs claiming an exemption from the bond requirement. HB 2037
DATA CALLS / REGULATORY REPORTING
Maryland has issued a bulletin regarding a data call requesting that select medical professional liability insurers provide rate information for certain policyholders. The Insurers must provide the information no later than August 29, 2016. No information is required if the insurer did not receive the data call directly. Bulletin 16-14
Texas issued a data call to all companies writing commercial property, residential property, private crop, inland marine, medical malpractice, fidelity, surety, other general liability, product liability, and automobile insurance to collect information relating to disallowed expenses. Insurers must respond no later than July 1, 2016. B-0013-16
DEPARTMENT OF INSURANCE
Colorado published a bulletin to clarify the surcharge on fines and monetary penalties of up to 15 percent of the amount due. The surcharge is to fund development, implementation, and maintenance of a consumer outreach and education program. Bulletin B-1.26
FEE SCHEDULES
Idaho amended certain rules regarding the DOI's fee schedules. Provisions concerning specified fees for solicitation permits, service of process, producer and miscellaneous licensing fees were amended. IDAPA 18.01.44
FILING REQUIREMENTS / PROCEDURES
Nebraska issued a notice eliminating the requirement that policies be refiled when the only reason for refiling is a change in company officers. NOTICE dated June 6, 2016
Oklahoma issued a judgment that requires property and casualty insurers who offer earthquake insurance to file their rates before using them. This Order is effective immediately. Case No. 16-0391-TRN
Vermont issued an order regarding filing of credit card related insurance benefits. Order 16-018-1
Staff Vacations Limiting Your Output?
Holidays and Summertime can often become difficult for managers to balance workloads
and letting their staff take vacations. Click here to find out how First Consulting can help!
FINANCIAL REGULATION
Tennessee amended its law regarding convenience fees for professional licenses. SB 2534
HOLDING COMPANIES
Florida has enacted a rule amending the filing requirements for holding company system members. Insurers are required to register with the DOI using the Regulatory Electronic Filing System, as well as additional requirements including information that must be disclosed, enterprise risk reporting, and cost sharing agreements. FAC Rule 69O-143.046
INDUCEMENTS
Arizona updated its statute regarding inducements/incentives/rebates to allow for "reasonable incentive" of up to $200 for participation in customer feedback intended to improve the quality of the insurer's products or services. SB 1494
Georgia amended its Code to allow insurance producers to advertise or conduct promotional programs where items not exceeding $100.00 in the aggregate per customer in any one calendar year can be given to current or prospective customers and will not violate inducement restrictions so long as the giving of any such items is not contingent on the sale or renewal of a policy. HB 784
LIABILITY INSURANCE
Colorado has revised the rules relating to the Dental Practice Law of Colorado (now the Dental Practice Act). Revisions include addition of the term "malpractice judgement", as well as changes to licensing procedures. 3 CCR 709-1 Rule I
Tennessee amended its code relating to liability for firearm exclusion in certain locations. SB 1736
MARKET CONDUCT
South Dakota published a bulletin announcing that it will participate in the Market Conduct Annual Statement (MCAS) beginning in 2017. A licensed company will be required to file MCAS if it writes at least $50,000 of gross premium in the Life, Annuity, Private Passenger Auto, Homeowners lines of business or if it has any in-force Long-Term Care policies of certain types (no premium threshold applicable to the LTC business). Bulletin 16-04
MARRIAGE EQUALITY / CIVIL UNIONS / DOMESTIC PARTNERS
Alabama enacted legislation to abolish common-law marriages entered into on or after January 1, 2017 and recognize the validity of those entered into before that date. HB 332
MISCELLANEOUS
Maryland issued a letter to all domestic companies regarding cybersecurity. Cybersecurity Letter to Domestics
New Jersey issued a bulletin advising that the email address of the Department of Banking and Insurance (“Department”) has been changed. Note that only the “domain name” which is the second part of the email address changed. Examples of the new format: john.doe@dobi.nj.gov (for individuals) and legsregs@dobi.nj.gov (for general correspondence and filings). Bulletin 16-04
NOTICE TO INSUREDS
Rhode Island issued a bulletin regarding Gramm-Leach-Bliley Act Annual Privacy Notices, addressing recent changes due to the Fixing America's Surface Transportation (FAST) Act, which allows for elimination of annual notices if certain conditions are met. Bulletin 2016-2
Tennessee enacted legislation requiring any information holder to disclose a breach of security to any resident of Tennessee whose personal information was, or is reasonably believed to have been, acquired by an unauthorized person. Disclosure must be no later than 45 days from the date of discovery or notification of breach, unless legitimate needs of law enforcement extend the notification period. SB 2005
ORSA: OWN RISK AND SOLVENCY ASSESSMENT
Florida enacted legislation to require Own Risk and Solvency Assessment (ORSA) reporting, with the initial ORSA Summary Report to be submitted by December 31, 2017. SB 1422
COMPREHENSIVE ERM/ORSA CONSULTING SERVICES
First Consulting is now offering a full range of consulting services to create or enhance an Enterprise Risk Management (ERM) and Own Risk & Solvency Assessment (ORSA) Compliance Program for any insurance company. The services include training, assessments and easy to use “Kits”
Click here to find out more.
RISK RETENTION GROUPS
Tennessee enacted legislation to amend its Governance Standards for Risk Retention Groups and credit for reinsurance. HB 2568
SURPLUS LINES
Alaska has replaced Order R 15-05 and revised the list of insurance types on the surplus lines placement list. Cannabis-related operations, unmanned aircraft-general liability, Segway tours-general liability, and RV dealers-dealer's physical damage are all added. Employment practices liability-monoline liability was removed. Order R16-01
Michigan has issued a bulletin that sets a maximum on placement fees that surplus lines insurers are allowed to charge. Bulletin No. 2016-14-INS
South Dakota issued a bulletin relating to surplus line brokers that provides guidance regarding the filing of multi-state surplus line policies. Bulletin 16-05
TITLE INSURANCE / AGENTS
Alabama has enacted a bill that exempts attorneys licensed by the state bar from requiring an agent license to act as an agent for title insurance. If qualifying business is transacted through a law firm, the law firm is also considered exempt. House Bill 129
TRAVEL INSURANCE
South Carolina enacted the Limited Lines Travel Insurance Act effective July 21, 2016. HB 4141
CERTIFICATE OF AUTHORITY CHANGES NEEDED?
Whether your Company's future includes a merger, a name change, a change of control, the addition of a new line of business, or the addition of new jurisdictions, First Consulting can help. Click here to find out how First Consulting can help!
WORKERS' COMPENSATION
Alaska has issued an order relating to workers' compensation, specifically allowing placement of coverage with a nonadmitted insurer under specific circumstances. The order outlines the processes and reporting requirements. Order R16-02
Florida has issued a memorandum reiterating prohibition of unfiled side agreements in workers' compensation insurance, which the DOI has become aware is occurring. Informational Memorandum OIR-16-03M
Louisiana has permanently adopted emergency measure LAC 40:I.6605, relating to awards of cost in workers' compensation disputes. LAC 40:I.6605
Oklahoma enacted legislation related to the affidavit of exemption for workers’ compensation insurance under the Roofing Contractors Registration Act. SB 1083
Tennessee amended its “Rental and Assignment of PPO Network Rights” law authorizing the Bureau of Workers’ Compensation to investigate complaints alleging certain disclosures and assignment of PPO network rights. Amendment also authorizes certain penalties. SB 1758
CERTIFICATE OF AUTHORITY CHANGES NEEDED?
Whether your Company's future includes a merger, a name change, a change of control, the addition of a new line of business, or the addition of new jurisdictions, First Consulting can help.
The Uniform Certificate of Authority Application (UCAA) has streamlined changes to an insurer's Certificate of Authority, yet a considerable amount of time must still be invested. Training staff to handle such filings may be a one-time event and the experience gained may not be used again for several years, if at all.
We are experienced with the UCAA licensing process and we are familiar with the various state-specific requirements. Our services include advising what materials are needed for each state’s filing, assembly of the filings, and follow up to secure approval of the filings. Having First Consulting provide these services can free your staff for other functions and projects.
Click here for information on how we can assist you with UCAA filings.
John Palmer
816.391.2744
John.Palmer@FirstConsulting.com
COMPLIANCE TRAINING TO MEET YOUR NEEDS
Looking for fresh and relevant compliance training? First Consulting’s training is developed specifically for the insurance industry, by the insurance industry!
The distinct training topics available are:
- Anti-Fraud with L/H or P/C version
- AML (Anti-Money Laundering)
- OFAC (Office of Foreign Assets Control) with L/H or P/C versions
- Privacy
- California Claims Training (coming soon!)
Contact Us today for additional information or to schedule a free demo.
Carol Stern, FLMI, AIRC, ACS
816.391.2746
Carol.Stern@FirstConsulting.com
THE BATTLE BETWEEN WORK AND VACATION!
It’s hard to believe that the Memorial Day holiday has already passed! Holidays and Summertime can often become difficult for managers to balance workloads and letting their staff take vacations.
First Consulting can help!
Our experienced team of insurance experts can step in at any stage of your project and bring it to a speedy finish:
Let First Consulting help keep your projects on target. Contact me today to find out more and get a no obligation quote!
Sean Cox
Sean.Cox@FirstConsulting.com
816.391.2737