Property & Casualty News
November 2016
We are celebrating over 25 years of providing selected items of current interest to our clients and friends. The items contained in this newsletter are derived from bulletins, regulations and legislative activity affecting the insurance industry. Please feel free to share this newsletter with others that may be interested. Contact our office for further details about any of the items contained in the newsletter.
ADJUSTERS
California amended various requirements with respect to public insurance adjusters. SB 488
Connecticut issued a notice announcing that adjuster applicants can submit an application through the National Insurance Producer Registry (NIPR) website. Notice 1 dated October 4, 2016
AGENT / PRODUCER LICENSING AND APPOINTMENT
Alaska issued a bulletin advising that Alaska will no longer offer surety and crop insurance as a line of authority, effective March 1, 2017. However crop insurance will be offered as a limited lines license. Bulletin B 16-10
Louisiana issued a notice regarding producer and adjuster license applications. Notice dated October 13, 2016
Michigan issued a memorandum regarding the new online system available for licensed business entity producers. Memorandum of September 19, 2016
Nebraska is amending its "Schedule of Fees" for insurance producer and insurance consultant licenses, effective January 1, 2017. Notice of September 23, 2016
New Jersey amended its regulations regarding producer licensing. NJAC 11:17-2.10
Rhode Island issued a bulletin regarding licensing requirements for managing general agents. Bulletin 2016-7
Rhode Island issued a bulletin regarding voluntary insurance producer business entity licensing for residents and non-residents. Bulletin 2016-6
South Carolina issued a bulletin announcing that fingerprints and criminal background checks will be licensing requirements for resident producers effective January 1, 2017, and providing details regarding the process. Bulletin 16-10
ANNUAL / QUARTERLY STATEMENT
Florida adopted changes to a regulation to establish uniform requirements for reporting of annual and quarterly statement information for all authorized insurers. It adopts and incorporates by reference several NAIC manuals addressing accounting and reporting practices and procedures. 69O-137.001
AUTOMOBILE INSURANCE
California amended its law relating to operating a vehicle while under the influence with a passenger for hire in the vehicle, effective January 1, 2017. AB 2687
New York adopted a new regulation regarding the minimum levels of financial responsibility for for-hire motor carriers of passengers. 17 NYCRR 750.3
Pennsylvania issued a notice regarding the list of approved guide source providers approved to calculate the replacement value of unrecovered or total loss vehicles. Notice 2016-14
Puerto Rico issued a circular letter regarding loss cost review of automobile insurance lines to all insurers that are authorized to transact vehicle insurance business. Circular Letter CC-2016-1890-AP
CAPTIVES
Delaware issued a bulletin clarifying the use of mutual funds for minimum capital and surplus for captive insurance companies. Captive Insurance Bulletin 5
Delaware issued a bulletin regarding reduction of capital for special purpose captive insurance companies. Captive Insurance Bulletin 4
Delaware issued a bulletin regarding the change of ownership for captive insurance companies making the Internal Revenue Code section 831(b) Election. Captive Insurance Bulletin 6
CLAIMS / CLAIMS ISSUES
New Jersey amended requirements regarding the internal appeals process for disputes under personal injury protection coverage in auto policies. NJAC 11:3-4.2
CONFIDENTIALITY / PRIVACY
California amended its law regarding disclosure of medical information by providers. AB 2119
Idaho promulgated a rule to relieve insurers and producers from having to send their customers an annual privacy notice when they comply with other requirements concerning disclosure of personally identifiable financial information and where the licensee's practices and policies have not changed since the last notice sent to their customer. IDAPA 18.01.48
Louisiana issued an emergency rule regarding privacy notices to consumers. Emergency LAC 37:XIII.9901
CORPORATE GOVERNANCE
Nebraska adopted a regulation to set forth the procedures for filing and the required contents of the Corporate Governance Annual Disclosure. 210 NAC Ch. 88 s 001+
WHAT REPORTS WILL YOU SUBMIT IN 2017?
Want help with CGAD, ORSA and other reporting readiness?
First Consulting has answers! Click here to learn more.
DATA CALLS / REGULATORY REPORTING
Georgia issued a Directive regarding a data call for information regarding the impact of Hurricane Matthew. Directive 16-EX-5
New York issued a data call for commercial automobile liability insurers covering public automobile classifications, due December 16, 2016. Notice dated October 28, 2016
DISASTER / CATASTROPHIC EVENT
Alabama issued a bulletin to all admitted insurers authorized to write Property and Casualty insurance in the state regarding hurricane and other wind/hail mitigation premium discounts. Bulletin 2016-07
California amended its law regarding earthquake coverage in residential property insurance. AB 499
North Carolina issued a new bulletin dated 10-18-16 regarding the North Carolina Department of Insurance Disaster Mediation Program. This bulletin amends a bulletin dated 10-12-16. Bulletin 16-B-8
South Carolina issued an emergency measure regarding a moratorium on cancellation due to nonpayment of premiums and certain nonrenewals and extension of insurance related provisions affecting insureds impacted by Hurricane Matthew. The emergency measure expires February 6, 2017. Emergency R 69-78 s 1 Dated 10-10-2016
ELECTRONIC TRANSACTIONS
California amended its insurance code regarding electronic transactions. AB 2591
FILINGS: PROPERTY / CASUALTY
Oregon issued a notification that the Division of Financial Regulation changed the URL for the Rates and Forms section of its website beginning November 5, 2016. Email Notice dated November 3, 2016
EXPANDING YOUR BUSINESS WITH OUR HELP
Many agents and carriers are looking at product changes, introducing new products and expanding into new jurisdictions.
Click here to learn how we can help.
FINANCIAL EXAMINATIONS
Florida amended its rule regarding the NAIC financial condition examiners handbook to update handbook versions and information concerning how to access the handbooks. FAC Rule 69O-138.001
GENERAL LIABILITY INSURANCE
Louisiana enacted legislation regarding insurance coverage for arborists and landscape irrigation contractors. LAC 7:XXIX.117 dated 10-20-2016
HOLDING COMPANIES
Hawaii updated several regulations regarding the insurance company holding system. 16-14-1 +
LIABILITY INSURANCE
Arkansas issued a new order regarding cyber risk/data breach insurance. Order 2016-073
California enacted legislation relating to investigational drugs, biological products and devices, effective January 1, 2017. The legislation will be referred to as the Right to Try Act. AB 1668
California enacted legislation relating to pharmaceutical waste. The new law provides civil and criminal immunity to collectors for any harm resulting from the collector maintaining a secure drug take-back bin. SB 1229
New York amended its law authorizing public facilities to stock and administer epinephrine auto-injectors for emergency treatment of a person appearing to experience anaphylactic symptoms. SB 6800
MISCELLANEOUS
Iowa amended its law to provide for certain exemptions from sales and use tax upon the sale of computers used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise. Regulation 701-230.18
Michigan enacted the Marihuana Tracking Act, effective December 20, 2016. HB 4827
Michigan enacted the Medical Marihuana Facilities Licensing Act, effective December 20, 2016. HB 4209
NOTICE TO INSUREDS
California enacted legislation to permit a notice of lapse, nonrenewal, cancellation or termination, as specified, to be transmitted electronically if it is also transmitted by mail, as prescribed by statute. Assembly Bill 2591
OMNIBUS LEGISLATION
Ohio amended several regulations. Modifications were made to rules regarding unfair and deceptive military sales practices, appointment of insurance agents, unfair property/casualty claims settlement practices, misconduct by insurance license applicants and licensees, and title insurance controlled business arrangements, effective November 3, 2016. Rule 3901-1-08, 3901-1-24, 3901-1-54, 3901-5-12, and 3901-7-04
Rhode Island issued an informational bulletin regarding legislative amendments that were enacted during the 2016 session of the Rhode Island General Assembly that impacted the insurance industry. Bulletin 2016-5
PROPERTY INSURANCE
Louisiana issued an emergency rule regarding homeowner and fire/commercial insurance policy disclosure forms. Emergency LAC 37:XIII.15301
Oklahoma issued a bulletin regarding responsibilities when writing property protected by rural fire departments. The bulletin withdraws Bulletin PC 2016 - 05 and related notices due to unforeseen complexities arising after issuance of the Bulletin. Bulletin No. PC 2016-05 (c)
SERVICE CONTRACTS / WARRANTY INSURANCE
California amended its law relating to vehicle service contracts. AB 2354
SURPLUS LINES
Arizona issued a bulletin to clarify HB 2149 and the service fees charged by surplus line brokers. Bulletin 2016-04
Delaware amended a previously issued bulletin to provide responses to inquiries received regarding implementation and application of surplus lines Forms SL-1917 and SL-1914. Surplus Lines Bulletin 19 Amended 10-25-2016
THIRD PARTY ADMINISTRATORS
Nevada issued a TPA Information Form relating to Workers' Compensation which is due no later than November 11, 2016. Failure to provide the information required may result in administrative fines. FY16 TPA Information Form
TITLE INSURANCE / AGENTS
New Mexico issued a bulletin clarifying the computation of the premium for issuance of the Mortgage Modification Endorsement with Additional Amount of Insurance form. Bulletin 2016-023
UNCLAIMED PROPERTY
California amended its insurance code regarding unclaimed property. AB 2258
Michigan amended provisions regarding the reporting and disposition of unclaimed property. HB 5283
WORKERS' COMPENSATION
California amended its law regarding the Welfare and Institutions Code relating to Workers' Compensation. AB 1244
California amended provisions regarding Workers' Compensation utilization review. AB 2503
Colorado issued a bulletin to clarify the Division of Insurance’s position regarding ERISA plans being sold as a substitute for workers’ compensation insurance coverage. Bulletin No. B-4.10
Kentucky amended provisions regarding procedures for adjustments of claims for Workers' Compensation benefits. 803 KAR 25:010
New York adopted new regulations regarding Workers' Compensation administrative reviews, full board reviews and applications for reconsiderations. Bulletin WC 46-878
New York amended its Workers' Compensation law by extending claim filing deadlines for participants in the World Trade Center rescue, recovery and clean-up operations. SB 5745
Ohio amended its regulation regarding Workers' Compensation confidentiality by updating definitions and terms. Rule 4123-10-01, 4123-10-04
Oregon issued a notice regarding a decrease in pure premiums and other rate changes in premium assessments and the workers' benefit fund payroll assessments. Regulatory Notice of September 21, 2016
EXPANDING YOUR BUSINESS WITH OUR HELP
Have you begun your review of marketing, sales and budget projections for 2017? Many agents and carriers are looking at product changes, introducing new products and expanding into new jurisdictions.
When considering product development for new products or making revisions to existing products and programs, there are many steps and activities involved. Some of these activities are market research, knowing state laws, knowing how regulators will react to new innovative products, design of products, drafting, and filing.
First Consulting can help you with most items related to expansion into new states, new lines of business, new products and product changes. A list of our services is available here.
Joe Bieniek
816.512.2832
Joe.Bieniek@FirstConsulting.com
INCLUDE FIRST CONSULTING ADVERTISING SERVICES IN YOUR 2017 BUDGET
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Don’t wait for 2017! If you could use these today, contact me and we’ll get you set up!
C. J. Rathbun
816-391-2740
CJ.Rathbun@FirstConsulting.com