Property & Casualty News
October 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!
AGENT / PRODUCER LICENSING AND APPOINTMENT
Oklahoma's Insurance Commissioner issued a notice to remind Licensed Insurance Consultants and Customer Service Representatives that they are required to be licensed as Insurance Producers as of November 1, 2022. Notice dated September 8, 2022
AUTOMOBILE INSURANCE
California amended a law to increase the minimum amounts of liability insurance coverage an owner or operator of a motor vehicle must maintain. SB 1107
Michigan's Insurance Director informs No-Fault Automobile Insurers and Health Care Providers of the Michigan Court of Appeals Opinion in Andary v. USAA Cas Ins. Co, Mich App; NW2d (2022) (Docket 356487) issued on August 25, 2022. Bulletin 2022-17-INS
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE CHANGES
Oregon's Insurance Department amended a rule to clarify notice requirements for midterm cancellations of commercial package policies. Rule 836-085-0055
CYBERSECURITY
Maryland's Insurance Department issued a bulletin to remind carriers and third party administrators of their obligation to notify the department of cybersecurity events and provides instructions on how to provide the required notice. Bulletin 22-13
DEPARTMENT OF INSURANCE
California passed a bill that allows the Insurance Commissioner to seek restitution for a victim harmed by a person who sells insurance without a license. SB 1040
DISASTER / CATASTROPHIC EVENT
California's Insurance Commissioner reminds all admitted and non-admitted insurers of a mandatory moratorium on cancellations and non-renewals of residential property insurance after a state of emergency was declared due to wildfires. The law prohibits insurers from non-renewing or canceling residential policies within fire zip codes for one year following the emergency. Bulletin 2022-14
FILINGS: PROPERTY / CASUALTY
Oklahoma changed the address to which certain property and casualty filings may be submitted. Rules 365:15-1-3, 365:15-7-3
FRAUD / ANTI-FRAUD
California amended a law dealing with the time frame within which an insurer must send information to the Insurance Department concerning a fraudulent claim. The time has been changed to within 60 days after the insurer has completed an investigation and suspects or knows fraud may have occurred. SB 1242; Ins s 1872.4
HOLDING COMPANIES
The Texas Insurance Commissioner adopted a rule based on the NAIC model regulation for the group capital calculation. The new rule will require certain insurers to file a group capital calculation with their holding company registrations. 28 TAC 7.215
MISCELLANEOUS
Connecticut's Insurance Department issued a bulletin giving guidance to all domestic insurance companies regarding managing the financial risks for climate change. Bulletin FS-44
Maine passed the Pet Insurance Act to take effect on January 1, 2023. The new law is based on the NAIC model law. Bulletin 464
Michigan's Insurance Director released an updated list of Michigan municipalities participating in the Fire Insurance Withholding Program. Department Notice Edition 148 dated October 1, 2022
PROPERTY INSURANCE
Arkansas' Insurance Department informed all licensed Property Insurers, Farmers Mutual Aid Companies and Associations of an assessment by the Arkansas Rural Risk Underwriting Association due by December 31, 2022. Bulletin 13-2022
REGULATORY REPORTING REQUIREMENTS
Maryland's Insurance Department notified insurers that its ACH and Wire Payment numbers for premium tax and industry assessments have changed. It also recommends the use of OPTins for premium tax payments. The Department's Bank of America Account is no longer functional. Bulletin 22-14
SURPLUS LINES
New Jersey's Department of Insurance published three updated lists: (1) accredited reinsurers; (2) reinsurers domiciled and licensed in another state which employs substantially similar standards; and (3) reinsurers that maintain trust funds. Carriers domiciled, licensed or eligible to write surplus lines insurance may take full credit for reinsurance ceded to the lists of reinsurers until September 1, 2023. Notice dated September 1, 2022
TITLE INSURANCE / AGENTS
Maryland's Insurance Commissioner notified all title insurers and title insurance producers of prohibited practices in the payment of compensation under the insurance laws in light of changes in the Business Occupations and Professions law regarding payment of compensation. Bulletin 22-12
Texas' Insurance Department issued a mandatory data call for title insurance companies and agents to submit business data by November 7, 2022. This data is used to set title insurance premium rates. Bulletin B-0007-22
WORKERS' COMPENSATION
Arizona's Industrial Commission published the new minimum wage based on the increase in inflation per the Consumer Price Index. The minimum wage for 2023 increased from $12.80 to $13.85. Notice dated September 16, 2022
Arkansas' Workers' Compensation Commission updated the Weekly Workers' Compensation Rates for 2023. AWCC Advisory Notice 2000-1
California passed a law that allows a Licensed Clinical Social Worker to be added by an insurer or self-insured employer to a workers' compensation provider network. SB 1002
California's Division of Workers' Compensation adjusted the Pathology and Clinical Laboratory section of the Official Medical Fee Schedule to conform to relevant 2022 changes in the Medicare payment system. DWC Notice dated September 30, 2022
Massachusetts' Workers' Compensation Rating and Inspection Bureau expanded the eligibility requirements for the Massachusetts Medical and Indemnity Data Call. Calls are mandatory for carrier groups and individual member insurers not affiliated with an insurance group with at least .05% market share. This is reduced from the previous 1% market share. Circular Letter 2408
Oregon's Workers' Compensation Division notifies insurers and self-insured employers of the annual increase in Retroactive Program benefits and the methods used to calculate the benefits and determine the amount of Retroactive Program reimbursement. Bulletin 389