Property & Casualty News
November 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!
AUTOMOBILE INSURANCE
Delaware amended its law dealing with motor vehicle financial protection products. It adds a definition of "Guaranteed Asset Protection Waiver" and provides that "guaranteed asset protection waiver" is exempt from insurance regulation. HB 429
Michigan's Insurance Department Office of Consumer Finance issued a bulletin clarifying the Motor Vehicle Sales Finance Act's prohibition of the sale of automobile insurance in automobile dealerships. Violations may result in revocation or suspension of an installment seller's license. Bulletin 2022-18-CF
New York amended its vehicle and traffic law regarding catalytic converters. All new motor vehicle dealers and qualified dealers are required to stock an etching kit capable of etching a traceable serial number onto the catalytic converter of a new motor vehicle that can be clearly seen and quickly linked back to the vehicle. Dealers must report information every 60 days. SB 9428
CREDIT FOR REINSURANCE
The District of Columbia amended its law on Credit for Reinsurance to allow insurers to receive credit when reinsurance is ceded to an assuming insurer that meets certain requirements. B 1005, DC Act 24-589
FILINGS: PROPERTY / CASUALTY
New Mexico's Insurance Commissioner advises all insurers and advisory organizations that filed Property & Casualty rates covering risks in New Mexico of information regarding Automatic Rate Escalations. Anyone who filed rates that utilize automatic rate escalations beyond a reasonably foreseeable period are required to correct and refile the rates within 6 months of the date of this bulletin. Bulletin 2022-020 dated November 1, 2022
Oklahoma's Insurance Commissioner issued a notice to Property & Casualty Insurers and Advisory Organizations of an order exempting certain commercial insurance products from policy form and rate filing approval requirements. Case No. 22-0660-PRJ Order issued October 26, 2022
PERSONAL LINES INSURANCE
Colorado promulgated a regulation that identifies specific acts or practices regarding law and ordinance coverage that may constitute unfair claim settlement practices. This applies to homeowner insurance policies that have loss claims and have law and ordinance coverage. This regulation is effective December 15, 2022. 3 CCR 701-5, Regulation 5-1-21
PREMIUM TAX
Kentucky's Insurance Department notified all insurance companies and surplus lines brokers subject to Kentucky local government premium taxes of reconciliation report filing procedures and changes in how to submit reports. Bulletin 2022-03
PROPERTY INSURANCE
California amended Section 2644.9, Mitigation in Rating Plans and Wildfire Risk Models which is part of the Insurance Commissioner's "Safer from Wildfires" framework. This requires insurance companies to submit new rate filings incorporating wildfire safety standards created by the Insurance Department. It also establishes a process for releasing wildfire risk determinations to residents and businesses within 180 days of October 14, 2022. Reg. Title 10, Section 2644.9
REPORTS - DATA CALLS & OTHER REPORTS
Illinois' Department of Insurance notifies all domestic insurers that it will participate in the NAIC Climate Risk Disclosure Survey. The deadline for the 2021 survey response is November 30, 2022. Companies that have not previously submitted a survey response via a participating state will be granted an extension to comply, which means they will begin reporting in the 2022 reporting year with a deadline of August 30, 2023. Bulletin 2022-16
The Texas Insurance Department has issued a data call to certain property & casualty lines of insurance for annual experience and workers' compensation deductible plans due by February 10, 2023. The lines of insurance include private passenger and commercial automobile, homeowners, multiple peril, workers' compensation, commercial and residential fire and allied lines, and others. Bulletin B-0009-22
SURPLUS LINES
New Jersey's Insurance Department notified all surplus lines producers of an updated list of all Active Surplus Lines Insurance Companies. Notice dated November 1, 2022
THIRD PARTY ADMINISTRATORS
New Jersey published a notice to Third Party Administrators licensed in New Jersey regarding changes in the annual reporting process that is due by June 1. Note that the requirement to file unaudited financial statements previously due by March 1 is no longer required. There are other changes also. Notice dated October 17, 2022
WORKERS' COMPENSATION
Alaska's Workers' Compensation Division published the Workers' Compensation Board's List of Second Independent Medical Examiners. Bulletin WC 22-05
Colorado's Division of Workers' Compensation amended claims adjusting requirements to incorporate recent law changes. 7 CCR 1101-3, Rule 5
Delaware made several changes to its Workers' Compensation Law. SB 315
Delaware's Compensation Rating Bureau reports the Insurance Department approved their Amended Filing No. 2202. Specific carrier action is required. Circular No. 1016
Maryland released the Specific Conversion Factor (MSCF)/Multiplier for the Maryland Workers' Compensation Commission Medical Fee Schedule. These factors are effective for services incurred in calendar year 2023. Notice dated November 1, 2022
Montana's Department of Labor and Industry published the updated rates for mileage reimbursement, meals and lodging for workers' compensation. Notice dated October 1, 2022
New York’s Compensation Insurance Rating Board (NYCIRB) announced that the New York Division of Insurance approved amendments to its Experience Rating Plan. Also, certain COVID-19 claims losses will be included in experience rating calculations. NYCIRB Bulletin R.C. 2868 dated 10-24-22
Oklahoma's Workers' Compensation Commission announced that due to an increase in the state average weekly wage, the maximum compensation benefit rate for injury illness or death will increase beginning January 1, 2023. WCC Notice dated October 26, 2022
The Texas Insurance Department announced that a Workers' Compensation Form adopted on July 17, 2022, has been corrected and should be used immediately by workers compensation insurance carriers. The form is DWC Form-003, Employer's Wage Statement. All corrections to pending and approved alternate forms must be made by December 31, 2022. Notice dated October 14, 2022
West Virginia announced the Workers' Compensation Assigned Risk Rates by Class effective November 1, 2022. Employers unable to obtain workers' compensation coverage through the voluntary market can obtain coverage through the Residual Market. WC Notice dated November 1, 2022