Property & Casualty News
May 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
Missouri revised its Continuing Education rule to allow four CEC hours for active participation as a member in a professional insurance association. Rule 20 CSR 700-3.200
AUTOMOBILE INSURANCE
Delaware's Insurance Commissioner informs all domestic and foreign casualty insurers writing private automobile insurance business that HB 41, signed by the Governor on September 30, 2021, relates to automobile insurance cancellations and nonrenewals. The Commissioner discusses insurer obligations under the house bill and the implementation plan for policy cancellation and nonrenewal appeals. Auto Bulletin 34 dated May 4, 2022
Florida passed a new law dealing with the motor vehicle insurance requirements for official law enforcement vehicles. SB 266
Idaho's Director of Insurance provided guidance to insurers writing private passenger and commercial auto policies regarding the application of Underinsured Motorist (UIM) coverage at the minimum limits, as defined in the insurance code. The Penn v. Viking recent decision is discussed as well as changes proposed as a result of that case. Bulletin 22-04
North Carolina's Reinsurance Facility filed Commercial Automobile Insurance Rates on behalf of its member companies to become effective on October 1, 2022. Circular Letter RF-22-5
CLAIMS / CLAIMS ISSUES
New Mexico's Insurance Superintendent issued guidance to all carriers regarding the interest rate applicable to unpaid claims after required proof of loss has been furnished. Bulletin 2022-007
CYBERSECURITY
Connecticut's Insurance Commissioner reminds all entities and persons licensed by the Connecticut Insurance Department to use technology and Big Data in full compliance with anti-discrimination laws. A data certification must be filed with the Department on or before September 1, 2022, and annually thereafter. Notice dated April 20, 2022
DISASTER / CATASTROPHIC EVENT
New Mexico's Insurance Superintendent signed an Emergency Order directing carriers who write health, property, homeowners, and automobile coverages in the fire impacted counties to place a moratorium on insurance cancellations for at least 90 days and arrange for policyholders to pay premiums retroactively. Other requirements are in the Order. Emergency Order Docket 2022-0041
New Mexico's Superintendent of Insurance asked all P&C insurers who write homeowners insurance to handle claims filed by victims of the four New Mexico wildfires in a manner that is more than state law or company policies require. Carriers are also being asked to provide certain information to the Department. Notice dated May 5, 2022
FILINGS: PROPERTY / CASUALTY
Alaska’s Director of Insurance suspended the file and use provisions for all Property & Casualty rates and forms for a period of 15 months. The Division reserves the right to treat File and Use filings as Prior Approval if deemed necessary by the Director. Order R22-02
Idaho's Department of Insurance provides guidance to Property & Casualty carriers regarding the filing of exclusions of losses due to viruses, communicable diseases, or pandemics in policy forms. The Department will begin accepting these filings if they meet certain conditions. Bulletin 22-03
FLOOD INSURANCE / NFIP
Illinois passed the Private Primary Residential Flood Insurance Act to promote a private primary residential flood insurance market to provide alternatives to the existing National Flood Insurance Program. HB 2739
GUARANTY ASSOCIATION
Michigan's Insurance Commissioner has adjusted the maximum amount of unearned premium refund to reflect changes in the cost of living as required by the Property and Casualty Guaranty Association Act. The new maximum refund amount is $1,780 until June 30, 2023. Bulletin 2022-12-INS
HOLDING COMPANIES
Georgia updated its Insurance Holding Company Systems law to incorporate the latest NAIC changes dealing with group capital calculation, liquidity stress testing, and other items. HB 969
New Hampshire updated its Insurance Holding Company law to add language regarding receiverships and group capital calculation for credit for reinsurance. HB 1558
POLICY LANGUAGE
Oregon's Insurance Commissioner issued a bulletin to provide guidance to Property & Casualty carriers regarding policy language used to exclude coverage of intentional acts. Examples of language that will not be approved are presented. Bulletin DFR 2022-2
PREMIUM ISSUES
Montana's Insurance Commissioner issued guidance to Property & Casualty insurers regarding the interest rate carriers must pay when overcharging a policyholder. Insurers will be assessed the bank prime loan interest rate published by the federal reserve system, plus 3% on premium refunds when an insurer overcharges a policy holder. Advisory Memorandum dated April 14, 2022
SURPLUS LINES
Montana published a list of eligible surplus lines companies in Montana. In addition, surplus lines producers may place insurance with an alien company on the NAIC's Quarterly List. The NAIC changed the name of the list to "Quarterly Listing of Alien Insurers." List of Eligible Surplus Lines Companies dated May 10, 2022
WORKERS' COMPENSATION
Maine's Workers' Compensation Board adopted an assessment rate for insurers for Fiscal Year 2023 beginning on July 1, 2022. Assessment letters for insurers and self-insured employers have been mailed and payments are due by June 10th. Assessment Rate Fiscal Year 2023
Oregon's Workers' Compensation Division has published coverage requirements for drivers who lease their trucks. The Oregon Supreme Court case of SAIF Corp. v. Ward interprets the term "furnish" as that term is used in ORS 656.027(15). Industry Notice dated April 18, 2022
The Texas Division of Workers' Compensation announced that it has selected Verisk for Claim Electronic Data Interchange (EDI) Data Collection Services for Release 3.1.4. All insurance carriers must register their billing contact information with Verisk by June 13, 2022. Notice dated May 12, 2022
The Texas Division of Workers' Compensation reminds carriers writing workers' compensation that SB 22 created a presumption that a COVID-19 injury or death is work-related for certain first responders. A summary of the law along with newly created forms to re-process claims is set forth. Covered employees or their beneficiaries must request that the insurance company re-process their claim by June 14, 2022. SB 22 Summary
Washington's Department of Labor & Industries amended the maximum daily fees for certain professional health care services for injured workers, increased Resource-Based Relative Value Scale (RBRVS) conversion factors and anesthesia conversion factors, along with changes to physical therapy and occupational therapy rules. WAC 296-20-135