Property & Casualty News
May 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
North Carolina's Department of Insurance, Agent Services Division, published the procedures to follow in the event of a catastrophic event. The bulletin provides procedures for catastrophic adjuster identification badges and a new CAT Course developed by NCDOI with specific North Carolina Insurance and Building Code requirements. Bulletin 24-B-05
AUTOMOBILE INSURANCE
Delaware published a bulletin notifying companies and agents that these mandatory financial responsibility forms are now available on the Delaware Division of Motor Vehicles website: FR1 - Delaware Uninsured Vehicle Report, FR4 - Notice of Cancellation or Termination of Policy, FR19 - State of Delaware Insurance Certification. Auto Bulletin 35
North Carolina Reinsurance Facility announced a significant change in rates for non-fleet private passenger automobiles and motorcycles. The rates are for ceded risks other than "clean risks." Circular Letter RF-24-7
CAPTIVES
Iowa adopted a new rule, titled Captive Companies. The rule establishes the policies and procedures for the administration of captive companies, including financial, reporting and record-keeping requirements. 191-113.1
CERTIFICATE OF AUTHORITY FILINGS
Delaware reissued a bulletin reminding insurers seeking to do business in the state of the department's "seasoning" requirements. No foreign company will be considered for admission until it has been transacting insurance business for three years and shown a net gain from operations at least one year prior to admission. The Department may waive these requirements. Bulletin Number 3 (Reissued)
COMMERCIAL LINES INSURANCE
Oklahoma passed a law pertaining to commercial lines insurance policies cancellation and nonrenewal notices permitting notices to be sent to policyholders electronically upon their consent and if the insurer is in compliance with the provisions of the Uniform Electronic Transactions Act. SB 1627
COMPLAINTS
Oregon's Insurance Commissioner issued a bulletin reminding insurance producers they must be truthful in their communications with policyholders regarding homeowners insurance underwriting and rating decisions. Recent consumer complaints and media reports reveal the importance of accurate information being communicated. Division of Financial Regulation Bulletin No. DFR 2024-5
CONFIDENTIALITY / PRIVACY
Kentucky enacted, effective 01/01/26, the Kentucky Consumer Data Protection Act. The act requires the appointment of a controller and establishes certain consumer rights relating to personal data. HB 15
Nebraska enacted the Data Privacy Act providing a consumer with privacy protection and control over their sensitive personal data. LB 1074
ELECTRONIC TRANSACTIONS
Oklahoma passed a law allowing insurers to post a policy or endorsement on their website provided it meets certain conditions and does not contain personally identifiable information. HB 1505
FILINGS: PROPERTY / CASUALTY
Delaware published a bulletin requesting that any company authorized to do business in the state notify the department prior to terminating any or all of a business line or product. The company should file a letter of intent prior to discontinuing an entire book of business, transitioning all business to an affiliated or non-affiliated insurer, or not offering to renew a block of business. Forms and Rates Bulletin No. 40
FRAUD / ANTI-FRAUD
Louisiana amended its regulation pertaining to a special assessment to collect costs of investigating insurance fraud. Changes include the sunset of the special assessment for automobile theft and insurance fraud prevention, effective July 1, 2024, unless extended by legislative authorization. LAC 37 XI.2303
HOLDING COMPANIES
Maryland enacted legislation updating its laws pertaining to insurance holding companies. Changes are made in accordance with the NAIC Model Insurance Holding Company Act. Changes include the requirement to file the results of a group capital calculation and a liquidity stress test. HB 252
LIABILITY INSURANCE
Maine published a bulletin notifying insurers of updated annual reporting requirements for liquor liability policies, including data about premiums and claims. Bulletin 472
MISCELLANEOUS PROPERTY / CASUALTY
Michigan's Department of Insurance and Financial Services issued an updated list of municipalities participating in the Fire Insurance Withholding Program. Edition 167 dated May 1, 2024
OMNIBUS LEGISLATION
Kansas enacted legislation containing numerous provisions relating to insurance, including provisions for compensation to the insurance department when certain examinations are performed. The legislation sets and adjusts the maximum amounts that will be charged for consulting, data processing and other costs of the examination. SB 356
PHARMACY BENEFIT MANAGERS
Oregon amended its Pharmacy Benefits Manager (PBM) law. Among other requirements, a PBM must be licensed by the Department of Consumer and Business Services (DCBS), instead of registered, and the license must be renewed every 12 months. The law also covers duties of a PBM, standards for reimbursement, and filing of certain material such as contracts and provider manuals. HB 4149
PREMIUM TAX
Kentucky published a bulletin outlining changes to policies and procedures relating to local government premium taxes. Bulletin 2024-03
PROPERTY INSURANCE
Alaska Division of Insurance directs companies writing property insurance that effective January 1, 2025, all new and renewing policies cannot include depreciation of labor in the definition of "actual cash value". Policies must be amended via endorsement. Bulletin B24-07
Florida enacted the My Safe Florida Condominium Pilot Program. The pilot program sets standards for hurricane damage mitigation, inspections and contractors performing those inspections. HB 1029
Georgia enacted HB 279, which requires insurers to provide a premium discount or rate reduction when the property owner makes improvements or builds a new structure that resists tornado, hurricane, or other catastrophic wind events. HB 279
TITLE INSURANCE / AGENTS
Alaska issued a bulletin providing clarification that a Closing Protection Letter must be filed with the Division's Property and Casualty section. Bulletin B 24-05
Oklahoma passed a law prohibiting title insurance companies from charging a fee for the filing of a release of mortgage affidavit. This law is effective November 1, 2024. HB 4151
Rhode Island's Superintendent of Insurance bulletin shared best practices for title insurers. Bulletin 2024-4
Tennessee passed a law requiring an insurance agent applying to sell title insurance to complete at least 30 hours of title insurance pre-licensing course work. HB 2281
WORKERS' COMPENSATION
California DWC published notice announcing it has launched a new online portal for Qualified Medical Evaluators to use to submit medical-legal reports required to be filed. DWC Notice 4-23-2024
Nevada's Division of Industrial Relations released the 2023 Occupational Disease Claim Report. NRS 617.357
New Jersey Compensation Rating and Inspection Bureau (NJCRIB) published the Workers Compensation Insurance Plan Update and Plan Policy Expirations for August 2024. Circular Letter 2065
New York Workers' Compensation Board will begin utilizing a desk review process as opposed to a formal hearing for certain Section 32 waiver agreements on July 1, 2024. Bulletin WC 046-1683
New York's Compensation Insurance Rating Board (NYCIRB) released the limitation on payroll used in the calculation of workers' compensation premiums for the construction industry. The amount is $1,757.19. Bulletin R.C. 2601 dated May 2, 2024
Texas Department of Insurance, Division of Workers' Compensation General Counsel reminds carriers of the rules associated with preventative treatment related to a physical injury and workers' compensation claims handling. Letter dated April 22, 2024
Virginia enacted a law that requires an employer or its insurer to include certain right to dispute claim denial language in a letter to the employee when a request for workers' compensation benefits is denied. SB 241