Property & Casualty News

October 2017

Welcome to our latest newsletter!  As a thought leader in the Insurance Industry for over 48 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

New York amended its insurance law regarding education for agents, brokers, and adjusters by adding a new subsection regarding satisfying the continuing education requirements for any biennial licensing period.     Assembly Bill 117


AGENT / PRODUCER LICENSING AND APPOINTMENT

Arkansas issued a bulletin stating that it has experienced difficulties verifying information due to applicants' use of a name other than their legal name. Effective immediately, all applicants for licensure must use their legal name on any documentation submitted to the Department.     Bulletin 15-2017

Illinois amended its producer license application process regarding felony convictions that would otherwise be grounds to deny, non-renew, or revoke a license and incorporates rehabilitation provisions.     Senate Bill 1688, 215 ILCS 5/500-30, 215 ILCS 5/500-70


AUTOMOBILE INSURANCE

Delaware issued a bulletin outlining annual submission requirements for auto insurance rate information.  A list of companies required to report and instructions are available on the Department's website.     Auto Bulletin 28

Delaware issued a final order regarding the Delaware Motorists Protection Act.  The order updates the Coverage Election form (Form A), and updates certain coverage limits.     Final order regarding Regulation 603

Louisiana issued a bulletin with information regarding processes and contact information for obtaining certificates of destruction for water-damaged vehicles.     Bulletin 2017-07

Texas issued a bulletin regarding flood damaged vehicles.     Bulletin B-0027-17


ASSISTANCE WITH PRODUCT INNOVATIONS
Innovations are a constant in our industry.  Have your products kept up? 
Whether you have exclusive programs or are using bureau forms for any line of business, First Consulting can help! 
Click here to learn more.


CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE

Illinois amended its law pertaining to the requirements for notice of cancellation and notice of intention not to renew.     House Bill 1954


CAPTIVES

Tennessee amended financial and reporting requirements for captive insurance companies, effective December 21, 2017.     0780-1-41-.03


CERTIFICATE OF AUTHORITY FILINGS

New Mexico issued a bulletin in response to inquiries received by the Company Licensing Bureau. The bulletin interprets the New Mexico Insurance Code for all insurers who have been issued a Certificate of Authority (COA) or are seeking a COA to transact one or more lines of insurance.     Bulletin 2017-011


CLAIMS / CLAIMS ISSUES

Texas adopted a new rule concerning good cause extensions to deadlines that are part of the claim-handling process for claims filed under the Texas Windstorm Insurance Association.     28 TAC §5.4203


CONFIDENTIALITY / PRIVACY

Delaware amended its Code addressing breaches of security involving personal information. Provisions are added concerning a breach of security that includes a social security number.     House Bill 180

Delaware issued a bulletin regarding data breaches of consumer information.  Insurers and insurance related businesses are asked to inform the Department within 24 hours of any suspected unauthorized data release.  The Department also requests that companies who mail information to their consumers do so in closed-faced instead of windowed envelopes.     Universally Applicable Bulletin 3


DEPARTMENT OF INSURANCE

Alabama announced its transition to a new version of State Based Systems (SBS), which was live on September 21, 2017. The revision provides new tools including Lookup, License Manager, Report Generator and SBS for Organizations functions.     SBS Implementation Flyer


DISASTER / CATASTROPHIC EVENT

Colorado issued a bulletin to provide guidance to insurers of property destroyed by catastrophic natural disasters.     Bulletin B-5.28

Florida issued emergency order due to Hurricane Irma.  The order provides that certain rules and statutes are suspended.     Order No. 214271-17-EO

Georgia issued a directive encouraging insurers to provide relief to policyholders after Hurricane Irma, including leniency where premium payments may be tardy due to disruption of services after the storm and ensuring that policyholders affected by cancellation or nonrenewal notices or adverse underwriting decisions have sufficient time to address their insurance needs.     Directive 17-EX-7

Texas issued a bulletin addressing Governor Abbott's proclamation declaring a disaster due to the effects of Hurricane Harvey. The Department encourages carriers to provide relief to those policyholders in counties in the governor's proclamation, including suspension of premium payments to allow continuing insurance coverage.     Commissioner's Bulletin B-0009-17

Texas issued a bulletin regarding suspension of certain licensing requirements and fees due to Hurricane Harvey.     Bulletin B-0023-17

Texas issued a bulletin regarding underwriting guidelines for personal auto and residential property insurance.     Bulletin B-0032-17

Texas issued a bulletin reminding insurers of restrictions regarding policy nonrenewal.     Bulletin B-0026-17

Texas issued a bulletin reminding insurers of withdrawal plan requirements.     Bulletin B00031-17

Texas issued a bulletin reminding insurers that before they may restrict writing new business in response to a catastrophic natural event, they must file a restriction plan with TDI and obtain prior approval.     Bulletin B-0025-17

Texas modified criteria for declaring a weather-related catastrophe or major natural disaster.     28 TAC §5.9303


MARRIAGE EQUALITY / CIVIL UNIONS / DOMESTIC PARTNERS

Rhode Island amended its laws regarding unfair competition and practices to preclude any unfair discrimination by treating persons in a domestic partnership differently than persons in a marriage.     SB 0432 SUBSTITUTE A


OMNIBUS LEGISLATION

Rhode Island enacted legislation relating to service of process for foreign insurance companies, unfair claims practices, motor vehicle liability insurance applications by volunteer drivers, and elimination of the continuing education advisory board.     SB 0782

Texas issued a bulletin providing summaries of selected bills regarding property and casualty insurance. The bills pertain to topics including the definition of commercial property insurance, surplus lines, property damage claims, notices of certain changes to policyholders and agents, adjusters, and certain premium surcharges.     Bulletin B-0029-17


PERSONAL LINES INSURANCE

Alabama enacted legislation that requires registration of a claims contact person for each admitted and non-admitted insurer that writes homeowners insurance.  Registration must be completed between October 1, 2017 and November 30, 2017.     Bulletin 2017-05 09-08-17


PROFESSIONAL LIABILITY INSURANCE

Kansas implemented a temporary measure regarding liability insurance requirements for acupuncturists.  Application for licensure will require evidence of professional liability insurance of at least $300,000 per claim subject to an annual aggregate of $1 million.  Renewal applications will require evidence that such liability coverage has been maintained.     Emergency 100-76-5


PROPERTY INSURANCE

Florida adopted rules relating to sinkhole insurance.     FAC Rule 69B-251.001

Texas adopted rules regarding the Mold Assessors and Remediators program.     16 TAC s 78


REHABILITATION AND LIQUIDATION

Illinois revised its law related to the rehabilitation, liquidation, conservation, and dissolution of insurance companies.     Senate Bill 683


REINSURANCE

Illinois repealed part 50 Ill. Adm. Code 1101 regarding reinsurance ceded contracts.  Provisions included authority, application and effective date, and required information.     50 Ill. Adm. Code 1101.5


REPORTS - ANNUAL / QUARTERLY STATEMENT

New York amended its law to provide that the March 2017 version of the NAIC's Accounting Practices and Procedures Manual is to be used in preparing the quarterly statements and the annual statement for 2017, which will be filed in 2018.     11 NYCRR 83.2

North Carolina amended its requirements for filing the annual report to allow the report to be in electronic form or in paper form by the fifteenth day of the fourth month following the close of the corporation's fiscal year.     55-16-22


REPORTS - DATA CALLS & OTHER REPORTS

South Carolina issued a notice regarding a data call relating to Hurricane Irma insurance claims.     Notice of October 3, 2017

Texas issued a bulletin regarding a mandatory data call for information regarding claims resulting from Hurricane Harvey for all companies, corporations exchanges, mutual, county mutuals, reciprocals, associations, Lloyds, and other insurers writing property and casualty insurance and their agents and representatives, due October 31, 2017.     Bulletin B-0034-17


OPERATIONAL COMPLIANCE WITH FIRST CONSULTING
Compliance staff are challenged to implement, measure and reinforce strategies
to protect your company’s reputation and bottom line. 
First Consulting has the expertise to assess your risks.  Click here to learn more.


SOLVENCY / FINANCIAL CONDITION

Texas issued a bulletin that provides a brief summary of selected bills enacted by the 85th Legislature regarding the regulation of solvency and licensing.     Bulletin B-0030-17


SURPLUS LINES

Alaska issued a bulletin to surplus lines brokers addressing the latest line codes for surplus lines transaction reports.     Bulletin B 17-06

Delaware enacted mandatory use of the Online Premium Tax for Insurance portal (OPTins) for surplus lines brokers to submit future transaction reports, premium tax reports and payments after January 1, 2018.     Surplus Lines Bulletin 21

Georgia issued a bulletin pertaining to unauthorized fees being charged by surplus line brokers and insurers.  Collections in excess of those specified by the policy are unlawful.     Bulletin 17-EX-1

Texas issued a bulletin regarding a mandatory data call for information regarding claims resulting from Hurricane Harvey for surplus lines, due October 31st, 2017.     Bulletin B-0035-17


TRAVEL INSURANCE

Connecticut issued a bulletin to inform limited lines travel insurance producers of new requirements for individuals and business entities.     Bulletin L-22


WORKERS' COMPENSATION

Connecticut now allows employers to designate for their employees a specific location where those employees must file any claims they may make for workers' compensation benefits. If an employer chooses to designate a location for employee claims, notice must be posted where other posters required by law are displayed in the workplace and send the same address information it has posted in its workplace to the Workers' Compensation Commission.     Memorandum 2017-08


OPERATIONAL COMPLIANCE – GET OUT OF THE WEEDS

What does operational compliance mean in your company? Compliance Officers and staff are challenged to implement, measure and reinforce strategies to protect your company’s reputation and bottom line.

First Consulting has the expertise to dig into the weeds of Operational Compliance and assist you with:

·   Assessments - Assess compliance and verify accuracy of claims processing, communications and payments
·   Risk Controls - Determine appropriateness and adequacy of risk controls for specific activities
·   Policies & Procedures - Update policies and procedures for regulatory compliance
·   Agent Training - Appraise agent training and communications to identify potential gaps
·   Implementation - Track the implementation process of changes to laws for market conduct compliance

Where can we help you? Contact me today to start a conversation.

C. J. Rathbun, FLMI, CCEP, HIA, AIRC
816.391.2740
CJ.Rathbun@FirstConsulting.com


ASSISTANCE WITH PRODUCT INNOVATIONS

Innovations are a constant in our industry.  Have your products kept up?

Whether you have exclusive programs or are using bureau forms for any line of business, First Consulting can help!

·   Marketplace research
·   Comparison of forms
·   Drafting forms for new programs
·   Drafting forms for product innovations like cyber, sharing economy, UBI, or incorporating predictive analytics, etc.
·   Tweaking forms or endorsements to provide additional options
·   Creating and Submitting filings through SERFF – even using your SERFF instance

Contact me today to discuss a practical approach to accomplishing your innovation goals.

Joe Bieniek
816.512.2832
Joe.Bieniek@FirstConsulting.com