Property & Casualty News
June 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
Maryland amended its law governing public adjusters including prohibiting contact during certain hours and extending the cancellation period from 3-10 business days. HB 36
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE
Kentucky published an advisory opinion clarifying its interpretation of KRS 304.20-340. Insurers may not decline to insure or terminate coverage for losses immediately resulting from natural causes as specified by statute. Further, all notices must clearly state the reason for the termination or nonrenewal. Advisory Opinion 2024-01; May 22, 2024
CLAIMS / CLAIMS ISSUES
North Carolina's Insurance Department urges insurers offering automobile insurance to prioritize prompt handling and settlement of auto insurance claims. The Department may take appropriate enforcement action against an insurer engaged in unfair and deceptive practices. Bulletin 24-B-07
COMMERCIAL LINES INSURANCE
New Jersey passed a law increasing the minimum limits of liability insurance coverage that must be maintained by owners and operators of commercial motor vehicles engaged in intrastate commerce. Policy forms and rates must be filed, and insurers must have rates on file for the new minimum coverage limits. All commercial automobile insurers should also update policy forms, if applicable, that reference minimum coverage limits to comply with the increases implemented by the Act. Bulletin 24-07
CONFIDENTIALITY / PRIVACY
District of Columbia published a bulletin reminding all carriers doing business in the District of the department's expectations regarding the use of artificial intelligence. Basically, the department expectation is, when using artificial intelligence, that companies will continue to adhere to all laws and regulations, including those prohibiting unfair trade practices and unfair discrimination. Bulletin 24-IB-002-05/21
DISASTER PREPAREDNESS
New York's Superintendent of Financial Services published the standards expected of property and casualty insurers in planning for disaster preparedness. A pre-disaster data survey and disaster response plan must be submitted to the Department. Circular Letter 2024-4
DISCLOSURE REQUIREMENTS
Colorado adopted disclosure requirements for replacement cost homeowner's insurance policies in the state. For policies that do not include extended replacement-cost coverage or law and ordinance coverage, the insurer shall print a specific warning on the declarations page. The requirements are effective on or after 01/01/25. 3 CCR 702-5, Regulation 5-1-25
Colorado enacted a new law requiring that companies provide a summary document explaining coverage and exclusions in the insured's choice of English or Spanish effective 01/01/26. The commissioner shall provide a format for the form by 12/31/24. HB 24-1440
FRAUD / ANTI-FRAUD
Alabama approved amendments to its insurance fraud law, including increasing the statute of limitations from two years to seven. It also gives insurance fraud investigators the powers vested in law enforcement officers including the power of arrest and service of process. HB 140
California published notice of updates to the SIU Annual Report filings in the state. They have designated a fixed date of September 15 as the due date. Further information will be mailed in June and training sessions will be held July 24 and August 28. SIU E-Blast 2024-11
GUARANTY ASSOCIATION
New Jersey Property-Liability Insurance Guaranty Association notifies carriers of an assessment of 1.3% of each carrier's 2023 private passenger automobile liability net direct written premium. NJPLIGA Bulletin 2024 - 001
HOLDING COMPANIES
Colorado adopted amendments to its laws governing insurance holding companies to bring them in line with the NAIC financial models. Changes include financial testing and reporting as well as confidentiality. HB 1321
New Jersey updated its Holding Company regulation to incorporate the Group Capital Calculation and Liquidity Stress Test in the amended NAIC model. NJAC 11:1-35.13
MISCELLANEOUS
Illinois adopted an amendment incorporating the Purposes and Procedures Manual of the NAIC Investment Analysis Office. 50 Ill. Adm. Code 806.40
Illinois adopted an amendment requiring all insurance companies to file proof of financial responsibility by electronic means. 92 Ill. Adm. Code 1070.20
New York's Property Bureau encourages all insurers authorized to write property/casualty insurance in New York State to offer loss mitigation tools and services to insureds for free or a reduced fee, such as smart water monitor and shutoff devices in connection with homeowners’ insurance policies. Circular Letter 3 (2024)
Oklahoma's Insurance Commissioner notified all licensed insurance professionals the Licensing Division will accept name change requests electronically for individuals and agencies through www.nipr.com. Name change requests must be made within 30 days of the legal change. Special Notice dated June 4, 2024
Pennsylvania enacted a law providing for the sale, solicitation and negotiation of pet insurance policies. HB 660
Vermont created the Pet Insurance Act which allows pet insurance to be sold and policies delivered in Vermont. HB 659, Sec. 28. 8 V.S.A. chapter 149
PERSONAL LINES INSURANCE
New Jersey's Insurance Commissioner reminds insurers who issue private passenger automobile policies to comply with requests from an attorney to disclose policy limits no later than 30 days following the request under certain circumstances. Bulletin 24-06
North Carolina's Insurance Commissioner published a circular letter concerning revised Dwelling Fire and Extended Coverage Insurance rates. Insurers are reminded they must give at least 15 days prior notice of a rate change. Circular Letter P-24-2
Oregon reminds property and casualty insurers of their legal obligation to file underwriting guidelines for personal lines with the insurance division. Insurers must also include how they address or consider wildfire risk mitigation actions. Bulletin DFR 2024-7
Rhode Island amended a law relating to casualty insurance rating. For any policy written or renewed on or after January 1, 2025, an insured's rate or classification regarding the operation of a personal motor vehicle, widowed persons cannot be treated differently than persons in a marriage. HB 7606
PREMIUM ISSUES
Utah's Insurance Commissioner notifies all property and casualty licensees the Department has received an increased number of consumer complaints regarding increases to insurance premiums. Consumers report being told by licensees that the Department requires the increase. Licensees must communicate with policyholders the reasons for rate changes. The Department may penalize a licensee who states or infers the Department is the cause of the rate increase. Bulletin 2024-7
West Virginia's Insurance Commissioner disclosed that there are increased inquiries to the Department regarding premium rate increases particularly with regard to homeowners' and automobile insurance. Consumers have advised the OIC that their insurance company or agent advised them that their premiums increased because the OIC mandated the change. The Insurance Department does not mandate premium rate increases and reasons for increased rates must be explained to consumers. Bulletin 24-04
PROPERTY INSURANCE
Alaska published a bulletin notifying carriers that the definition of actual cash value (ACV) may not include depreciation of labor language. Policies that include depreciation of labor language must be amended via endorsement. B 24-07
Colorado enacted an amendment directing the manner in which mortgage companies must distribute insurance proceeds to insureds. HB 1011
Florida issued an update on the status of the property insurance market. Overall, signs point to a decline in property insurance rate filings and a strengthening of the market. Notice dated May 17, 2024
REPORTS - DATA CALLS & OTHER REPORTS
Delaware issued a bulletin to all insurers marketing property and casualty coverage in their state notifying carriers the Property and Casualty Carrier Survey form has been revised. The bulletin includes the email address to which the report can be submitted and encourages any carrier that has not submitted the current year's survey to do so immediately. Bulletin 84-Revised
TITLE INSURANCE / AGENTS
Arkansas published an Attorney General Opinion interpreting the requirement that a title insurance agency be allowed "free access" to public records for real property. In short, the opinion states that a city, county or state office must allow a title insurance agency in-person ability to reproduce official documents for no charge. Related questions are also answered in the Opinion. Opinion 2024-048
TRADE PRACTICES
Louisiana updated its unfair trade practices law to include, as an unfair trade practice, the failure to give an insured, upon written request, the original field adjusters repair estimate along with identification of anyone revising the estimate. HB 520
WORKERS' COMPENSATION
California's Workers' Compensation Division published notice of its plans to address certain e-filing problems in EAMS, the electronic case management system. The division may suspend or remove some e-filing privileges from users who have continued to e-file defective data, causing ongoing delays in processing. Notice Dated May 14, 2024
New Hampshire's Department of Labor published increases to the Worker's Compensation State's Average Weekly Wage as well as Minimum and Maximum Weekly Compensation Rates. DOL Notice dated May 21, 2024
New Jersey's Compensation Rating and Inspection Bureau announced that with the January 1, 2025, rate filing it will publish rates and excess elements with three decimal places as opposed to two decimal places. This will allow for greater responsiveness in adjustments. Circular Letter 2068