Property & Casualty News
December 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!
ADVERTISING / SALES & MARKETING
New York amended the General Business Law to require telemarketers to disclose requests for personal or financial information within the first 30 seconds of a call. Telemarketers must also provide their address and the company’s address on their website and in written communications. The law also mandates telemarketers to disclose the purpose of their call within 30 seconds. AB 7939
AGENT / PRODUCER LICENSING AND APPOINTMENT
Wisconsin will process all 2025 company appointments electronically through the National Insurance Producer Registry (NIPR). The appointment renewal invoice will include all resident/nonresident appointment renewals. All agents will appear on the renewal list unless the agent was terminated by 11:59 p.m. CST on December 31, 2024.The renewal process will begin on January 5, 2025, and end on March 15, 2025, with electronic payment methods. Failure to settle by the deadline will result in termination and reappointment of all agent appointments. Bulletin dated November 14, 2024
ARTIFICIAL INTELLIGENCE
California passed a law that requires developers of generative artificial intelligence systems to disclose detailed information about the datasets used to train, test, or modify their models. Effective January 1, 2026, developers must post this data transparency on their websites, including a summary of dataset sources, types, and purposes, as well as whether the data includes personal or copyright-protected information. AB 2013
Oklahoma issued a reminder to insurers that decisions supported by AI Systems must comply with all insurance laws, including those addressing unfair trade practices and discrimination. The bulletin highlights the need for fairness, accountability, and transparency in AI Systems and mandates the creation of an AI Systems Program to mitigate risks of adverse consumer outcomes. It also emphasizes due diligence for third-party AI systems, regulatory compliance, and the need for insurers to be prepared for potential oversight and examination regarding their use of AI. Bulletin 2024-11
AUTOMOBILE INSURANCE
North Carolina now requires insurers and their representatives handling claims under private passenger automobile policies to disclose specific information to claimants when recommending a motor vehicle repair service. The disclosure must inform the claimant that they are not obligated to use the recommended service, that the insurer will pay the policy-determined amount regardless of the service used, and whether the insurer has a financial interest in the recommended service. Memorandum dated November 20, 2024
CLAIMS / CLAIMS ISSUES
Arkansas issued guidance requiring property and casualty insurers to complete claim investigations within 45 days of notice of claim, with clear communication regarding any delays. Insurers must inform first-party claimants of claim decisions within 15 working days of proof of loss and provide written reasons for any delays. Failure to comply with these requirements is deemed unfair practice, subject to enforcement actions by the Insurance Commissioner. Bulletin 20-2024
DISCLOSURE REQUIREMENTS
California issued guidance for all admitted insurers conducting property and casualty business subject to Proposition 103 and the CA FAIR Plan, where applicable. This includes submitting complete rate applications for approval, offering the lowest premium for which an applicant qualifies, and ensuring that all products and pricing options are presented to applicants. The guidance also includes public notice requirements for rate changes, mandates prior approval for recouping certain expenses, and transparency in credit card fees and mitigation disclosures. Insurers must address any non-compliant disclosures within six months of the date of this bulletin. Bulletin 2024-14
ELECTRONIC TRANSACTIONS
New Jersey amended the insurance code to permit the electronic delivery of notices and documents related to portable electronics insurance. Insurers must stop electronic delivery if they believe the notice was not received or if the email address is invalid. The law defines portable electronics insurance as coverage for loss, theft, damage, or mechanical failure of portable electronics. SB 1325
HOLDING COMPANIES
Colorado’s Division of Insurance readopted Regulation 3-4-1 with amendments, aligning it with the Insurance Holding Company Systems Act. The regulation introduces exemptions for group capital calculations for smaller systems, refines reporting by requiring only one digital copy, and enhances oversight of cost-sharing agreements between insurers and affiliates. 3 CCR 702-3-4-1
New Mexico amended regulations under the Insurance Holding Company Law. The amendments update definitions and make technical changes to Form B filings and group-wide supervision. They also introduce new provisions for transactions requiring prior notice, including cost-sharing and management services agreements. 13.2.2.1 NMAC
MISCELLANEOUS
Maryland announced a new Pet Insurance Law effective January 1, 2025. HB 647 mandates clear consumer disclosures about policy exclusions, premiums, claim history, and cancellation rights. It also sets rules for coverage, claims payments, waiting periods, and wellness programs, requiring transparency from insurers regarding benefits, eligibility, and fees. Bulletin 24-25, HB 647
Michigan updated the list of municipalities participating in the Fire Insurance Withholding Program, effective January 1, 2025. The program allows certain municipalities to escrow 25% of fire insurance settlements for fire and explosion losses, with larger municipalities allowed to escrow for additional losses, including vandalism and civil commotion. Notice dated December 1, 2024
PHARMACY BENEFIT MANAGERS
Iowa amended Chapter 59, "Pharmacy Benefits Managers," to ensure timely payment of pharmacy claims. The amendment removes a provision that previously prohibited pharmacy benefits managers from retroactively increasing reimbursement for clean claims paid to pharmacies. Rule 191-59.3
PREMIUM TAX
California announced the launch of a new Premium Tax Processing System (PTPS) portal to streamline the online submission of Insurance (Premium) Tax forms. Effective January 31, 2025, all Admitted Insurers and Surplus Line Brokers must use the PTPS for filing their Premium Tax Returns, in line with state tax code requirements. However, for tax years 2023 and earlier, submissions will still be accepted via email until further notice. Notice Dated 12/2/24
PROPERTY INSURANCE
New Mexico now requires residential property and casualty insurers doing business in Fort Bayard and Santa Rita to notify policyholders of changes in Public Protection Classifications (PPC). The changes, effective February 1, 2025, result from a survey by ISO and may affect policyholders' premiums or renewals. Insurers are asked to send a specific notification of the changes within 90 days of the bulletin’s date, November 14, 2024. Bulletin 2024-023 (updated)
New York's Superintendent of Financial Services is to establish standards for hurricane windstorm deductibles, effective February 20, 2025. The amendment mandates insurers to provide specific disclosures to policyholders about these deductibles in homeowners' and dwelling fire policies. AB 2866
SERVICE CONTRACTS / WARRANTY INSURANCE
New Hampshire announced amendments to the Consumer Guaranty Contract Law, effective January 1, 2025, aimed at enhancing consumer protection in service contracts for homes, automobiles, and other products. The amendments expand coverage to include manufacturers' service contracts and require obligors to submit detailed information about administrators and sellers, as well as file service contract language with the DOI for compliance review. The law also strengthens marketing standards, prohibits deceptive practices and the targeting of senior citizens. Bulletin 24-068-AB
SURPLUS LINES
Oklahoma requires surplus lines carriers to report policy and premium information for non-admitted insurance for the year 2024. Insurers must submit this data through the SLIP system. The data is necessary to reconcile the premiums written by non-admitted carriers with the premium reported by surplus lines brokers, self-procuring insureds and risk purchasing groups. First report is due by December 31, 2024. Special Notice dated November 13, 2024
TRADE PRACTICES
Texas released an informal working draft for a new rule under the Texas Administrative Code, focusing on the prohibition of tying arrangements. The proposed rule would prevent insurers or agents from requiring the purchase of both a personal automobile policy and a residential property policy, and applies to all insurers and surplus lines. 28 TAC Chapter 21, Subchapter J, Section 21.1008
WORKERS' COMPENSATION
Alaska’s Department of Labor and Workforce Development and Workers' Compensation Board amended rules to limit fees for medical treatment and services. For services provided between January 1, 2024, and January 1, 2025, fees cannot exceed the 2024 fee schedule. Starting January 1, 2025, fees will be capped at the maximum reimbursement established in the 2025 fee schedule. 8 AAC 45.083
California requires insurers authorized to transact Workers' Compensation insurance to pay assessments for various funds related to workers' compensation and labor enforcement. The assessments, based on direct workers' compensation premiums for Calendar Year 2023, are due in two installments with the first being by January 1, 2025, and the second by April 1, 2025. The notice details the specific assessment factors for each fund. DWC Notice Dated 11/26/24
California's Division of Workers' Compensation updated the Ambulance Services section of the Official Medical Fee Schedule to align with changes in the Medicare payment system. The update will apply to services provided on or after January 1, 2025. Notice Dated 12/4/24
California's Division of Workers' Compensation updated the Notice to Employees Poster (DWC Form 7) to include new language required by the Labor Code. The update clarifies that employees may consult a licensed attorney to understand their rights under workers' compensation laws, and that attorney's fees are typically paid from their recovery. 8 CA ADC 9881.1
Connecticut's Governor announced that workers' compensation insurance rates will be reduced by 6% starting January 1, 2025, following the approval of a 6.1% decrease in voluntary market loss costs and a 6.2% decrease in assigned risk plan rates. This marks the eleventh consecutive year of rate decreases, resulting in over $400 million in savings for employers. Notice Dated November 20, 2024
Florida's Office of Insurance Regulation approved a statewide workers' compensation insurance rate decrease, effective January 1, 2025. The National Council on Compensation Insurance proposed a 1.0% decrease for industrial classes and a 13.9% decrease for “F” classes, both of which were approved following a public hearing. Insurers may file to deviate from the NCCI rates, and affected parties have 30 days to request judicial review. Notice 400361-24
Hawaii's Department of Labor and Industrial Relations updated the Temporary Disability Insurance (TDI), Workers' Compensation (WC), and Prepaid Health Care (PHC) laws for 2025. The maximum weekly wage base for TDI is set at $1,441.72, and for WC, it is $1,787.91, with maximum weekly benefits of $837.00 for TDI and $1,192.00 for WC. Employers must also comply with PHC coverage for employees working 20+ hours weekly, with premium contribution limits set for both TDI and PHC. Notice Dated 12/2/24
Maryland Workers' Compensation Commission published the maximum rate of benefits for 2025. This includes benefits for temporary total disability, permanent total disability, permanent partial disability, and death benefits. Notice dated November 26, 2024
Massachusetts' Workers' Compensation Rating and Inspection Bureau (WCRIBMA) filed a proposal with the Division of Insurance for a 7.1% average rate increase for industrial classes and a 3.7% decrease for F-Classes, effective July 1, 2025. Insurers should use a preliminary endorsement for new and renewal policies until a final decision is made. WCRIBMA Circular Letter 2441
Minnesota's Workers' Compensation Insurers Association (MWCIA) announced changes to workers' compensation insurance rates, effective January 1, 2026. The pure premium base rates (PPBRs) and expected loss rates (ELRs) will be extended to three decimal places, with insurers required to update their systems by July 1, 2025. Circular Letter 24-1853
Nebraska announced that, starting January 1, 2025, the maximum weekly income benefit under the Workers' Compensation Act will increase to $1,130.00 for work-related injuries and illnesses. The minimum weekly benefit remains unchanged at $49.00, and the previous rates will apply to injuries occurring before this date. WC Notice dated November 19, 2024
Nevada implemented amendments to its Administrative Code aimed at improving workers' compensation procedures. These changes include the introduction of an electronic filing system for contested cases, and revised procedures for submitting contested claims, filing and serving documents, simplifying proof of service, and emphasizing document legibility and the redaction of personal information. NAC 616C.275
New Jersey's Compensation Rating and Inspection Bureau announced its new address and relocation to One Newark Center, effective December 16, 2024. Mail should be sent to the new address after this date, but telephone numbers and online services will remain unchanged. Circular Letter 2078
New Mexico's Workers' Compensation Administration announced the publication of its 2025 Health Care Providers' Fee Schedule and Billing Instructions, effective January 1, 2025. The document includes the fee schedule, the director's order, the official response to public comments, and information from previous years. HCP Fee Schedule and Billing Instructions
Vermont amended its Workers’ Compensation and Occupational Disease Rules effective January 1, 2025. Key changes include clarifications on injury reporting, first-aid only claims, temporary disability work search requirements, and pre-authorization for prescription drugs and medical equipment. The amendments also address compensation calculations, opioid prescription compliance, and procedures for disputes and hearings. Labor 94-1 Rule 1.0000
Virginia approved revisions proposed by the National Council on Compensation Insurance (NCCI) to the Experience Rating Plan Manual for Workers' Compensation Insurance in the state. The revisions, submitted on July 24, 2024, are approved for use in new and renewal policies effective on or after July 1, 2025. Admin. Order 12192