Property & Casualty News
October 2023
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
The Texas Insurance Commissioner updated the list of criminal offenses considered when a person with a criminal background applies for or renews an insurance license. 28 TAC s 1.502
AUTOMOBILE INSURANCE
New York now requires a carrier to provide (rather than offer) supplemental spousal liability (SSL) insurance in personal and commercial automobile policies. However, the named insured can decline or refuse the SSL coverage. The amended law contains other requirements. 11 NYCRR 60-1.6
CLAIMS / CLAIMS ISSUES
Oklahoma's Insurance Department notified Property & Casualty carriers they must include the Insurance Adjuster's Report, Claim Settlement Report, or claims statement or estimate when issuing claim settlement checks. Failure to do this may be considered an unfair claims settlement practice. Notice dated September 14, 2023
CONFIDENTIALITY / PRIVACY
California enacted certain privacy protections for individuals receiving medical treatment related to gender affirming care, abortion, contraception, and related medical treatment. Requirements to protect information are aimed at certain providers that store or maintain that type of information. AB 352
CREDIT FOR REINSURANCE
New Jersey's Department of Insurance, Office of Solvency Regulation published an updated list of eligible surplus lines reinsurers. All insurers domiciled, licensed or eligible to write surplus lines insurance in New Jersey or another state that has substantially similar standards are allowed to take full credit for reinsurance ceded to the listed reinsurers until September 1, 2024. Notice dated September 1, 2023
DISASTER / CATASTROPHIC EVENT
Hawaii's Insurance Commissioner issued a Memorandum encouraging all insurers providing residential property insurance to give insureds in areas impacted by the Maui wildfires at least 36 months of Additional Living Expenses, subject to policy limits. Memorandum 2023-5A
FILINGS: PROPERTY / CASUALTY
Arkansas’ Insurance Department announced an assessment to the members of the Arkansas Rural Risk Underwriting Association of $200. The assessment is due by 12-31-2023. Bulletin 15-2023
Delaware amended its regulations pertaining to rate and form filings, including adding a requirement that filings be submitted to the department no less than 60 days prior to the proposed effective date. The commissioner may extend the review up to 90 days by giving notice within 45 days of receipt of the filing, and the filing will not become effective until the later of department approval or the expiration of the extended time period. HB 228
FRAUD / ANTI-FRAUD
California enacted an amendment relating to false and fraudulent insurance claims. The amendment requires the insurer to provide the fraud warning on a form used when the person applies for a policy, seeks to amend insurance coverage, or furnishes information relating to underwriting criteria affecting premium or eligibility for coverage, under an existing policy, instead of when that person applies for a policy or seeks to make a change to an existing policy. SB 743
MISCELLANEOUS
California's Governor issued an executive order directing the insurance commissioner to take regulatory action to strengthen and stabilize California's homeowners and commercial property insurance marketplace. The regulatory response shall include improving the efficiency, speed, and transparency of the rate approval process. Executive Order N-13-23
Michigan published an updated list of all municipalities that participate in the Fire Insurance Withholding Program. Notice Dated October 1, 2023
Oregon's Insurance Commissioner issued a bulletin to identify the most common notice and filing issues/deficiencies and to remind producers and applicants of their responsibility to furnish the division with complete, accurate, and truthful information in all filings. Bulletin 2023-3
PROPERTY INSURANCE
Maryland issued a bulletin notifying insurers and producers of changes to the requirements for homeowners insurance for owners of detached condominium units. Beginning October 1, the homeowners' council is no longer required to maintain property coverage for detached units, but may voluntarily continue to provide coverage. The bulletin advises producers to confirm whether coverage is provided before making a recommendation to purchase coverage. Bulletin 23-15
REPORTS - DATA CALLS & OTHER REPORTS
California enacted legislation requiring the insurance commissioner to conduct data surveys to measure the availability and affordability of insurance for specified trucks. The bulletin will be published on or before 2-1-2024 and responses will be required by 5-1-2024. Results will be published. AB 844
SURPLUS LINES
Oklahoma's Insurance Department advises surplus lines agents and direct procurement filers that Oklahoma adopted the Surplus Lines Information Portal (SLIP) for reporting and payment of surplus lines premium tax. This is effective January 1, 2024. Bulletin 12-2023
TRADE PRACTICES
Delaware enacted legislation that prohibits an insurer from using any of the following when underwriting homeowner or private passenger insurance: non-pending arrests, charges and indictments that do not result in conviction, convictions unrelated to fraud or the risk being insured, or driver's license suspensions or revocations for non-driving related reasons. Use of any of these factors will be treated as unfair competition and unfair or deceptive act. SB 184
WORKERS' COMPENSATION
Arizona's Department of Insurance and Financial Institutions announced a 10.3% reduction in Workers Compensation Rates effective 1-1-2024. Press Release Dated 10-5-2023
Connecticut published a Workers' Compensation Memorandum updating the average weekly wage, maximum compensation rate and cost-of-living adjustments. MEMORANDUM NO. 2023-05
Kentucky adopted a rule to establish the proper calculation of the Workers' Compensation special fund assessment, set procedures to be used to collect the assessment, to allow for audits and define penalties. 803 KAR 30:010
Massachusetts published a circular letter updating the cost of living adjustments, minimum and maximum weekly compensation rates, and reimbursement schedules for workers' compensation benefits. Circular Letter 359
Nevada's Department of Business and Industry Industrial Relations published instructions for completing a D-35 Form to request an impairment evaluation rating of a possible permanent partial disability (PPD). Notice dated September 1, 2023
North Carolina's Department of Insurance approved the Rate Bureau's loss cost reference filing to become effective on April 1, 2024. Circular Letter C-23-11
The Texas Department of Insurance published the maximum and minimum weekly benefits under the Workers' Compensation Act for the period October 1, 2023, through September 30, 2024. WC Notice of Weekly Benefits 2024
Vermont General Assembly made numerous changes to workers' compensation law that directly affects the day-to-day adjustment of claims. This includes: 1) a change in the method for calculating temporary partial disability benefits; 2) an increase in the weekly benefit for each dependent child under age 21; and 3) an expansion of the preauthorization process for medical treatment. HB 217
Virginia's Department of Insurance approved the revision to NCCI Basic Manual Rules related to workers' compensation service charge and automatic gratuities for new and renewal policies on or after January 1, 2024. Administrative Order 12178
Washington announced its workers' compensation reimbursement rates for lodging, meals, and privately-owned vehicle mileage effective October 1, 2023. WC 2023 Mileage Reimbursement Rates Sept 2023
Wisconsin's Commissioner of Insurance approved Workers Compensation State Special Rating Values pages effective October 1, 2023. Circular Letter 3255
Wisconsin's Compensation Rating Bureau published details concerning the 2024 Financial Calls and Fining Program. An assessment for delinquent responses is levied. General Circular Letter 667