Property & Casualty News
June 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 CONTINUING EDUCATION
South Carolina passed a law relating to continuing education requirements for licensed insurance producers. The amended law now provides an exemption to continuing education requirements for insurance producers who have 25 years or more of licensure and are 65 years of age or older. SB 158
AGENT / PRODUCER LICENSING AND APPOINTMENT
Louisiana amended its producer licensing law and removed certain prelicensing program requirements. HB 545
AUTOMOBILE INSURANCE
Kentucky's Insurance Department issued an Advisory Opinion regarding the interpretation of KRS 304.39-060(6) relating to the frequency an insurer must inform the insured in writing of their right to reject the limitations on their tort rights. Advisory Opinion 2022-002
Maryland amended requirements for the Maryland Automobile Insurance Fund (MAIF) to accept premiums on an installment basis for motor vehicle liability insurance policies. SB 278
New Jersey passed a law allowing the use of a pedicab and provides that the owner of the pedicab must maintain a general liability insurance policy in a minimum amount of $500,000 of coverage per accident. AB 462
COMMERCIAL LINES INSURANCE
Louisiana changed the manner in which a commercial insurance deductible is applied to named storm, hurricane, wind, and hail damage. SB 168
CREDIT FOR REINSURANCE
Connecticut adopted the most recent version of the NAIC Model Regulation. Regulation 38a-88-1 through 12
New Mexico replaced its Reinsurance rule to implement the Credit for Reinsurance Act enacted as SB 150. The new rule includes requirements for reciprocal jurisdictions and reinsurance in general. Rule 13.2.8
Oklahoma revised its reinsurance regulation to adopt the NAIC Credit for Reinsurance Model Regulation. Regulation 365:25-7-65
DEPARTMENT OF INSURANCE
New Hampshire's Insurance Department reminds insurance companies, agencies, and individuals transacting insurance business to respond within ten working days to a request for information or documents made by the Department. Anyone not responding in a timely manner may be fined and/or barred from doing business in New Hampshire. Docket: INS 22-028-AB
DISASTER / CATASTROPHIC EVENT
New Mexico reminds insurance companies of payment of residential property loss claims requirements following the wildfires in certain counties. Policies covering residential property are statutorily required to provide coverage for the cost to repair or replace damaged or destroyed property without any deduction for depreciation. Even though policy forms that provide for less than full replacement value may have been approved, the statutory requirements must be followed in claim payment. Bulletin 2022-010
GUARANTY ASSOCIATION
Michigan's Insurance Director published the annual adjustment of an insured's maximum unearned premium refund under the Michigan Property and Casualty Guaranty Association. Bulletin 2022-12-INS
PERSONAL LINES INSURANCE
Arizona enacted a law dealing with homeowner and renter's insurance and the breed of a dog. The breed of a dog cannot be the sole factor considered or used for underwriting or actuarial processes for determining risk, liability, or potential losses under a policy of insurance, questionnaire or survey or other means of gathering information on ownership or possession of a dog on the premises. HB 2323
Colorado passed a law concerning homeowners insurance coverage for insured losses incurred as a result of a declared fire disaster. Minimum requirements are set forth. HB 1111
Illinois reminds carriers writing homeowners coverage that an insured must be given at least 90 days to repair property that is capable of being rehabilitated before a policy cancellation is allowed. Bulletin 2022-10
Louisiana enacted a new law that deals with the adjustment of claims and adjuster communications for personal residential and commercial residential claims arising out of an emergency or disaster. SB 198
Oklahoma amended its Unfair Claims Settlement Practices law to state: "Any policy that specifies a time limit covering damage to a roof due to wind or hail must allow the filing of claims after the first anniversary but no later than 24 months after the date of the loss, if the damage is not evident without inspection." HB 3495
REPORTS - DATA CALLS & OTHER REPORTS
Florida's Office of Insurance Regulation (OIR) posted the 2022 Catastrophe Reporting Form (CRF) for collecting claims and other relevant information from insurance companies following a natural disaster causing catastrophic damage in Florida. OIR Notice dated June 1, 2022
SURPLUS LINES
Maryland increased the policy fee a surplus lines broker may charge on a policy issued by a surplus lines insurer by raising the fee cap to $200 on each personal lines policy and $500 or 7% of the policy's premium, whichever is greater, on each commercial lines policy. SB 572
TRADE PRACTICES
Connecticut passed a law regarding value-added products or services and prohibited insurance practices. It adopted the NAIC's amendments to the NAIC Model Unfair Trade Practices Act. HB 5388
WORKERS' COMPENSATION
Alabama's Workers Compensation Division gives notice of the state's average weekly wage and maximum workers' compensation payable for injuries occurring on and after July 1, 2022. WC Notice dated May 31, 2022
Arizona's Industrial Commissioner published the average monthly wage statutory maximum information and the maximum wage for injuries sustained on or after January 1, 2023. WC Notice dated May 27, 2022
Arkansas’ Workers' Compensation Commission published the updated mileage reimbursement rates for miles driven to and from medical providers. AWCC Advisory 89-2 Update May 19, 2022
Connecticut's Workers' Compensation Commission (WCC) published revisions to Form 30C Notice of Claim for Compensation, and Form 30D Dependents' Notice of Claim. WCC Memorandum 2022-04 dated June 3, 2022
Massachusetts' Workers' Compensation Rating and Inspection Bureau published Guidelines for Workers' Compensation Rate Deviation Filings to be effective on or after July 1, 2022. Circular Letter 2401
The Texas Department of Insurance, Division of Workers' Compensation (DWC), again extended its mandatory data call for certain information related to COVID-19 injuries reported on or after December 1, 2019. The Department of Workers' Compensation is extending the data call from June 2022 through December 31, 2022. Workers' Compensation Letter dated June 8, 2022
The Texas Department of Insurance, Division of Workers' Compensation notifies Workers' Compensation System Participants of the approval of the Return to Work Plan-Based Audit. All medical quality reviews initiated on or after January 1, 2022, will follow the approved Medical Quality Review Process in effect. The Process and Plan-Based Audit are posted on the TDI website. Workers' Compensation Letter dated June 6. 2022