Property & Casualty News
November 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!
AGENT / PRODUCER CONTINUING EDUCATION
Pennsylvania passed legislation that eliminates the pre-examination education program requirements for the insurance producer licensing exam. Requirements for continuing education have been added. SB 1241
AGENT / PRODUCER LICENSING AND APPOINTMENT
Kansas’ Insurance Department set the following application fees for insurance professionals: $15 for resident agents, $50 for nonresident agents, and $100 for public adjusters. Notice of Application Fee Amounts
AGENT / PRODUCER TERMINATION
Oklahoma's Insurance Department released its 2024 Producer Appointment Renewal Notification with key dates and outlining the process for renewal. Notice dated October 28, 2024
ARTIFICIAL INTELLIGENCE
Iowa issued a bulletin reminding insurance companies about the regulatory requirements surrounding the use of Artificial Intelligence (AI) in insurance decisions. AI systems used by insurers must comply with all applicable insurance laws, including those governing unfair trade practices and discrimination. Insurers must develop a written program (AIS Program) for the responsible use of AI, including risk management, governance, and testing for errors or bias. Bulletin 24-04
New York's Department of Financial Services issued guidance to executives and information security personnel at all regulated entities regarding managing cybersecurity risks arising from artificial intelligence and strategies to combat related risks. Industry Letter of October 16, 2024
AUTOMOBILE INSURANCE
Louisiana reminds insurers who write automobile liability insurance to give a required 25% premium discount for active-duty military personnel, reservists, and members of the Louisiana Air and Army National Guard. Insurers are also encouraged to offer discounts to veterans with a VA disability rating of 50% or more, and to retired military members. Bulletin 2023-04 (Revised and Reissued)
Montana's Commissioner of Securities and Insurance (CSI) issued an addendum on November 4, 2024, to its August 29, 2007, Advisory Memorandum regarding the amendment to Insurance Code 33-23-204, which covers motor vehicle liability definitions. The addendum rescinds the previous instructions and checklist for filing new rates to avoid stacking, as these are no longer valid. CSI now requires insurers to use a new certification titled Montana Certification of Compliance for UM, UIM, and Med-Pay Coverages, which is available on the CSI website. Advisory Memorandum of November 4, 2024
North Carolina’s Reinsurance Facility published revised basic limit premium rates for liability insurance for trucks, tractors and trailers, auto dealers, zone rated vehicles and certain private passenger types not eligible for rating under the North Carolina Personal Auto Manual. The updates are effective for all policies issued on or after April 1, 2025. Member insurers are encouraged to notify their agents of the new automobile rates. Circular Letter RF-24-18
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE
Maryland issued a bulletin clarifying that P&C insurers cannot cancel, non-renew, or refuse to underwrite a risk for which they have a filed rate, as outlined in Bulletin 03-16. If a risk is not covered by the insurer's filed rating plan, underwriting guidelines may be applied to decline coverage. Insurers must ensure their rates are actuarially sound and adequate, and must justify any cancellations, non-renewals, or refusals to underwrite when challenged. Bulletin 24-24
CAPTIVES
Ohio's Captive Insurance Company Rule was amended to revise various provisions regarding their formation, operation and financial statements. Rule 3901-11-01+
CREDIT INSURANCE
South Carolina approved 2025 rates for credit property insurance sold in conjunction with loans under the Consumer Protection Code. Order 2024-05
CYBERSECURITY
New York's Department of Financial Services issued a cybersecurity advisory to all regulated entities concerning remote technology workers who may have connections to North Korea. Suggested steps to protect information systems are included. Industry Letter of November 1, 2024
Oklahoma’s Insurance Commissioner issued a bulletin informing certain persons and entities authorized to do business in Oklahoma they must comply with the provisions of the Insurance Data Security Act. Bulletin 2024-10
DISCRIMINATION
Delaware updated the definition of "sexual orientation" in its state code. The law expands the definition to include asexuality and pansexuality alongside heterosexuality, homosexuality, and bisexuality. The law also revises the Delaware Insurance Code, specifically Section 2304, to prohibit unfair discrimination in the insurance industry based on sexual orientation, including the newly added categories. HB 275
FEE SCHEDULES
Hawaii issued a notice to all insurers, risk purchasing groups, and foreign retention groups regarding the annual service/extension fee for 2025. A penalty will be applied for late payments. Fees must be processed through the Options portal. Notice of September 24, 2024
FLOOD INSURANCE
Federal Emergency Management Agency (FEMA) issued a final rule that allows policyholders to pay their annual flood insurance premium in monthly payments instead of in a lump sum. This may allow the national flood insurance program to be accessible to more people. 44 CFR Parts 61 and 62
LIABILITY INSURANCE
Pennsylvania updated the Wholesale Prescription Drug Distributors License Act to add a virtual manufacturer definition and to require prerequisites for the license application process and a newly required surety bond with the application, among other items. HB 2084
MISCELLANEOUS
Michigan issued an updated list of municipalities participating in the Fire Insurance Withholding Program, effective December 1, 2024. The list specifies which sections of the program each municipality is participating in and supersedes all previous editions. Notice dated November 1, 2024
PERSONAL LINES INSURANCE
Michigan addressed concerns about the depreciation of non-tangible items, such as labor, in the calculation of Actual Cash Value (ACV) in personal lines homeowners or dwelling policies. Insurers must clearly disclose any depreciation of non-tangible items like labor, taxes, and overhead through a standalone endorsement, which must be optional and reflect a reduced premium. Insurers must also seek prior approval from the Department for their depreciation practices. Bulletin 2024-26-INS
New Mexico's Superintendent of Insurance notified Residential Property & Casualty insurers of a change in the Ft. Bayard and Santa Rita fire protection areas and a recent Public Protection Classification (PPC) survey. As a result, premiums may change depending on the PPC survey classes. Insurers are required to provide notice to its policyholders of potential premium changes. Bulletin 2024-23
POLICY LANGUAGE
Montana's Commissioner of Securities and Insurance issued an Advisory Memorandum on November 6, 2024, clarifying the limitations on Defense Within Limits (DWL) provisions in insurance policies. The memorandum revises previous guidance, stating that DWL provisions are prohibited in personal insurance policies but are allowed in commercial property and casualty insurance, provided they are clearly disclosed on the declaration page and application in bold, larger, and capitalized text. Advisory Memorandum of November 6, 2024
PREMIUM TAX
Delaware issued a revised bulletin updating premium tax payment requirements for surplus lines brokers. The bulletin sets specific due dates for premium tax payments. Domestic-Foreign Bulletin 147 (Revised)
SURPLUS LINES
Alabama mandates that nonresident surplus line brokers file a $50,000 bond in favor of the state to obtain or renew their license, effective January 1, 2025. The bond must remain in force for the duration of the broker's license, and the required bond form can be submitted by mail to the Alabama Department of Insurance. Bulletin 2024-05
Colorado amended its Regulation concerning surplus lines insurance issued by nonadmitted insurers effective January 1, 2025. Key changes include clarified disclosure requirements for policies, relaxed due diligence documentation for brokers, and new quarterly reporting requirements. The regulation also sets eligibility criteria for nonadmitted insurers, including a minimum capital and surplus of $15 million. 3 CCR 702 Reg.
New Jersey's Insurance Department updated its list of eligible foreign, domestic and alien surplus lines insurers. The list also contains additions, deletions, name changes as well as identification number changes. Notice dated October 30, 2024
Oklahoma’s Insurance Commissioner requests all surplus lines carriers to submit policy and premium information regarding the non-admitted insurance written in Oklahoma for the year 2024. The information is due by December 31, 2024. Special Notice dated November 7, 2024
TAX CREDITS
Louisiana adopted Regulation 130 to establish a refundable tax credit for retaliatory taxes paid by certain domestic insurers. This applies to insurers authorized to write insurance in Louisiana and at least one other state as of July 1, 2023. The regulation allows eligible insurers to claim a credit for retaliatory taxes paid to other states, with requests due annually by April 15. LAC 37 XIII.19901, Reg 130
WORKERS' COMPENSATION
Arizona announced a 9.1% reduction in Workers' Compensation rates, effective January 1, 2025, marking the 10th consecutive year of rate decreases. Notice dated October 25, 2024
California amended existing law regarding disability compensation and paid family leave. This law eliminates the provision that allows employers to require employees to use up to two weeks of earned but unused vacation before receiving these benefits during any 12-month eligibility period. AB 2123
California’s Division of Workers' Compensation released an updated DWC Form 7 (Notice to Employees-Injuries Caused by Work) on October 31, 2024. The updated form, effective January 1, 2025, informs injured workers of their right to consult an attorney about their workers' compensation claims and that attorney's fees will be deducted from their recovery. DWC Notice dated October 31, 2024
California's Division of Workers' Compensation posted an adjustment to the inpatient hospital section of the Official Medical Fee Schedule (OMFS) to align with updates to the Medicare payment system. These changes will take effect on December 1, 2024. DWC Notice dated November 4, 2024
California's Division of Workers’ Compensation announced the 2025 performance standards for Profile Audit Review (PAR) and Full Compliance Audit (FCA) for adjusting locations of workers' compensation claims. These audits, required every five years, assess areas such as payment timeliness for indemnity and disability benefits with performance thresholds with penalties for noncompliance. DWC Notice dated October 16, 2024
Colorado's Division of Workers' Compensation released PDF versions of the WC15 Workers' Claim for Compensation form and the WC18 Dependent's Notice and Claim for Compensation form on November 1, 2024. The updated versions retain the same format as previous forms but are enhanced for improved functionality. Notice of November 1, 2024
Iowa approved the National Council on Compensation Insurance (NCCI) rate filing as of November 1, 2024. The filing proposes a decrease in rates of 7.2% for voluntary compensation insurance and 9.6% for assigned risk policies, effective January 1, 2025. Regulatory Activity Notice dated November 1, 2024
Kentucky announced the discount rate for calculating lump-sum settlements of future periodic payments with regard to worker's compensation. For the calendar year 2025, the discount rate for weekly amounts of $40 or less is set at 3.875%, while for amounts greater than $40, the rate is 3.375%. Order of September 13, 2024
Maryland’s Workers' Compensation Commission updated the Maryland Specific Conversion (MSCF) / Multiplier for the Medical Fee Schedule, reflecting a 3.7% increase based on the Medicare Economic Index (MEI) for the first quarter of 2024, effective January 1, 2025. MSCF Multiplier Information dated 11/01/2024
Massachusetts' Department of Industrial Accidents is transitioning to a new payment platform for assessment payments, effective November 1, 2024. The new platform, Catalis Ncourt (nCourt), will handle all ACH debit payments for DIA assessments, and users must make payments through this updated system. The change includes a new Originator ID, payment instructions, and options for both ACH debit and credit card payments. WCRIBMA Circular Letter No. 2439
Massachusetts' Workers' Compensation Rating and Inspection Bureau announced the approval of updated pension tables by the Insurance Department. The new pension tables will apply to claims evaluated on or after July 1, 2025. These will be incorporated into the Massachusetts Workers' Compensation Statistical Plan, with updates available on the WCRIBMA website for compliance. WCRIBMA Circular Letter No. 2440
Mississippi's Workers' Compensation Commission published the revised base rate and Medicare threshold for the period from October 1, 2024, to September 30, 2025. The new base rate is set at $13,248.78, and the Medicare threshold is $46,217. The publication also includes data from prior years for reference. 2024-2025 Annual In-Patient Hospital Amounts
Nevada's Division of Industrial Relations provided detailed instructions on how to complete a D-35 Form used to request an impairment evaluation of a possible permanent partial disability. Important timelines are also set forth. Notice dated October 21, 2024
Nevada's Division of Industrial Relations, Worker's Compensation Section published a list of Frequently Asked Questions regarding changes related to SB 274 and Regulation R076-23. Notice dated October 21, 2024
Oklahoma's Workers' Compensation Commission released updated the weekly compensation rates for 2025 due to an increase in the state average weekly wage. Release dated October 29, 2024
Oregon's Workers' Compensation Division announced the workers' compensation premium assessment rate to be applied against premium earned by insurers, self-insured employers and self-insured employer groups during calendar year 2025. Bulletin 367 (Revised)
Pennsylvania amended its Workers' Compensation Law to allow benefits for post-traumatic stress injuries suffered by first responders. SB 365