Property & Casualty News
September 2016
We are celebrating over 25 years of providing selected items of current interest to our clients and friends. The items contained in this newsletter are derived from bulletins, regulations and legislative activity affecting the insurance industry. Please feel free to share this newsletter with others that may be interested. Contact our office for further details about any of the items contained in the newsletter.
ADJUSTERS
Alabama amended a regulation to exempt certain individual adjusters from exam requirements while applying for an independent adjuster license. The exemption is specific to adjusters who have been employed by an insurance company licensed in Alabama for a minimum of 20 years. 482-1-151-.06
AGENT / PRODUCER CONTINUING EDUCATION
Alabama has revised requirements relating to grandfathered exemptions for insurance producer/service representative continuing education. Previously claimed exemptions will be lost if that claimed exemption has changed. 482-1-110-.03
Massachusetts clarified requirements concerning hours of study and penalties for non-compliance. 211 CMR 50.01 +
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Anti-Fraud, AML, OFAC, and Privacy - Training is designed for Underwriters, call center personnel, claims handlers, others working with customers and data. Click here to learn more about the specific details of each course.
AGENT / PRODUCER LICENSING AND APPOINTMENT
Missouri has adopted emergency regulations relating to limited lines self-service storage insurance producer licensing. Producers licensed with Property & Casualty lines of insurance satisfy requirements for training program completion. Training programs approved by the Department may be required for employees or representatives. Emergency 20 CSR 700-1.170
Oklahoma issued a bulletin reminding all licensed carriers to update their Producer Licensing/Appointment contact email information to ensure prompt receipt of notices regarding appointment renewals. The bulletin provides, among other things, important reconciliation information for carriers with an NAIC Cocode wishing to reconcile company appointments. It also advises that electronic appointment renewal processing is provided and that payments for appointment renewals must be received electronically. 2016 Carrier Appointment Renewal Announcement
AUTOMOBILE INSURANCE
Maine has implemented rules relating to Ignition Interlock Devices (IIDs). Approved IIDs may be required when a driver's license is reinstated following a DUI. Provisions include certification of manufacturers of IIDs, installation, monitoring, eligibility, and audits of records. 29-250 s 8-1
Maryland has enacted legislation relating to automobile insurance. Personal Injury Protection benefits may be rejected by qualified applicants/policyholders. In these cases, a new waiver form is required The new waiver form is available on the Insurance Administration's website. Bulletin 16-27
Maryland has issued a bulletin clarifying requirements for insurance ID cards. New requirements apply to both personal and commercial motor vehicle liability policies. Buses and taxis are exempt. Changes are effective October 1, 2016. Bulletin 16-16A
Massachusetts has amended requirements relating to non-renewal or surrender of licenses to write motor vehicle insurance. Revisions include additional provisions for assigned risk companies, DOI approval of the timing and terms of withdrawal, and removal of certain language. 211 CMR 54.01
Massachusetts has designated certain 2017 model year motor vehicles as "high-theft vehicles". PC Filing Guidance Notice 2016-A
CLAIMS / CLAIMS ISSUES
Montana issued a memorandum clarifying the notice-prejudice rule. Insurers may only deny coverage for late notice of a claim if they can demonstrate it was prejudiced or injured by the lateness of the claim. Advisory Memorandum of August 17, 2016
CORPORATE GOVERNANCE
California published a notice regarding corporate applications and similar filings requesting Departmental approval by year-end 2016. Applicants seeking expedited review of corporate applications by the end of 2016 must submit the applications no later than September 16, 2016, or, in the case of a holding company application, no later than October 21, 2016. Notice dated August 15, 2016
WHAT NEW REPORTS WILL YOU SUBMIT IN 2017?
Want help with CGAD, ORSA and other reporting readiness?
First Consulting has answers! Click here to learn more.
CREDIT INSURANCE
Rhode Island enacted laws relating to financial institutions guaranteed asset protection. SB 2424
CROP HAIL INSURANCE
The Department of Agriculture finalized revisions to the Federal Crop Insurance Corporation Part 400 regarding submission of policies, provisions of policies, rates of premium, and non-reinsured supplemental policies to incorporate the legislative changes to the Federal Crop Insurance Act, effective September 12, 2016. 7 CFR 400.700 Dated 02-25-2015
DATA CALLS / REGULATORY REPORTING
Texas issued a data call to all insurers writing commercial fire and allied lines, commercial multiple peril, ocean marine, inland marine, other liability, products liability, and boiler and machinery insurance for terrorism risk insurance for data during the period of January 1, 2013, through December 31, 2015. B-0017-16
DISASTER / CATASTROPHIC EVENT
The Federal Emergency Management Agency (FEMA) is updating the National Flood Insurance Program by removing environmental considerations regulations and replacing the regulations with a new Directive and instruction, effective August 22, 2016. The Federal Emergency Management Agency is also amending its regulations regarding the National Flood Insurance Program. 44 CFR 60.6 Dated 08-22-2016; 44 CFR 78.11
FILINGS: PROPERTY / CASUALTY
Alaska has revoked Bulletin B 05-07. The change affects NAIC coding matrix for animal mortality and pet insurance products. Bulletin B 16-06
Nebraska published a reminder, in the Summer 2016 issue of their newsletter, to include background information justifying changes being made to rates when submitting a rate filing. 44-7508
INCLUDE FIRST CONSULTING IN YOUR 2017 BUDGET
It’s hard to believe that next year’s budget process is already upon us. Including First Consulting in your 2017 Compliance budget will allow you to accomplish more! Click here to find out more.
GENERAL LIABILITY INSURANCE
Oklahoma amended its regulation pertaining to aboveground storage tanks. 165:26-1-2
Oklahoma amended its regulation regarding liquefied petroleum gas by increasing fees and insurance requirements. 420:10-1-5
HOLDING COMPANIES
Maryland has revised certain requirements related to holding company reports. Changes include new forms and clarification of acquisition and surplus requirements. The changes are effective November 7, 2016. COMAR 31.04.18.02-.14
LIABILITY INSURANCE
Connecticut has approved filing of cyber liability claims-made insurance. All such forms are still subject to insurance regulation requirements as set forth in 38a-327-1, et seq. Notice dated July 11, 2016
MISCELLANEOUS
Massachusetts has revised certain inland marine provisions concerning the kinds of risks and insurance coverages which may be classified or identified as marine, inland marine or transportation insurance and insurance on outboard motors and motor boats. 211 CMR 10.00 dated 07-01-2016
Mississippi has revised insurance requirements related to manufactured homes. Provisions include bond requirements, liability insurance coverages, licensing, and inspections. 19-7-4.05
Utah adopted a rule allowing for electronic filing and service of documents in both formal and informal administrative proceedings. R590-160
NOTICE TO INSUREDS
Arkansas published a bulletin regarding amendments to the federal Gramm-Leach-Bliley Act (GLBA) to eliminate the requirement for redundant GLBA annual privacy notices. Bulletin 10-2016
Maryland has clarified expiring or renewal premium notice requirements relating to personal insurance policies. Notice is required whether the premium is increasing, decreasing, or there is no change in premium between the policy's expiring and renewal terms. The bulletin includes the requirements and sample documents for such notice. Bulletin 16-22
OMNIBUS LEGISLATION
Alaska enacted legislation affecting market conduct, continuing education requirements for licensees, surplus lines, rates, insurance fraud, and other topics. House Bill 372
Alaska published a bulletin to all licensees and registrants summarizing the major changes made to state laws by passage of House Bill 372. Bulletin 16-08
Arizona issued a bulletin summarizing the major newly enacted legislation affecting the Department, its licensees and consumers. Bulletin 2016-02
POLICY LANGUAGE
California enacted legislation to replace references to "husband" or "wife" to "spouse," and define "spouse" as including "registered domestic partner." Senate Bill 1005
PREMIUM TAX
Maryland has adopted changes regarding Department fees and taxes. Revisions includes amending premium tax allocations, reporting requirements, and penalties assessed. COMAR 31.06.01-.04
PROPERTY INSURANCE
Indiana has issued a bulletin relating to mine subsidence insurance, which supplements Bulletin 217. The bulletin includes guidance for underground coal mines coverage, rate revisions, and other changes effective 1-1-17. Bulletin 232
Oklahoma issued a bulletin to all property and casualty insurers and rating and advisory organizations, extending the deadline for fire insurance compliance with 36 O.S. § 4809 to October 1, 2016. PC 2016-05 Extension
REINSURANCE
Oklahoma issued an order regarding electronic filings of accredited reinsurers. The order applies to all annual statements, audited financial statements, forms, documents, fees, fines and payments filed on or before March 1, 2017 and thereafter. Order Elec. Filings Accredited Reinsurers 16-0633-PRJ
RISK RETENTION GROUPS
Alabama has revised the annual report and audit requirements for captive insurance companies adding a requirement that captive risk retention groups must submit reports of financial condition. 482-1-138-.03; 482-1-138-.04
SURPLUS LINES
Delaware has added two new forms for compliance with the Delaware Nonadmitted Insurance Act: Exempt Commercial Purchaser Application and Surplus Lines Broker Notice to Insureds. Forms and instructions are available on the Department website. Surplus Lines Bulletin 19
Delaware revised certain requirements for surplus lines brokers. Changes include tax rate increases, use of OPTins for premium tax handling, and broker responsibilities. The Department will also no longer make available a list of eligible surplus lines brokers. Surplus Lines Bulletin 5, Amended 8-2016
TITLE INSURANCE / AGENTS
Texas has issued a mandatory data call requiring title insurance companies and agents to submit an experience report for the 2015 Calendar Year. The deadline to respond to the data call is no later than September 30, 2016. Bulletin B-0016-16
TRANSPORTATION NETWORK
Mississippi has enacted legislation regarding transportation network companies (TNCs). New provisions include rules regarding operation of TNCs, registration of vehicles, service of process, fee collection, identification requirements, payment receipts, insurer authority to exclude coverage, and prohibition of certain actions. 19-9-1.01
UNCLAIMED PROPERTY
Illinois amended its law to decrease the duration from seven years to five years for unclaimed property held by any federal, state, local government, or governmental entity to be considered abandoned. Senate Bill 2783
WORKERS' COMPENSATION
Massachusetts has revised requirements regarding workers' compensation self-insurance groups. Changes include financial and reporting requirements, exemptions for certain materials during application, and affiliations with other service providers. 211 CMR 67.01
New York issued a bulletin announcing that forms and instructions regarding reimbursement forms for Special Disability Fund under Workers' Compensation Law can be found on their website. Bulletin WC 46-874
Ohio amended its rule regarding payment for transcutaneous electrical nerve stimulators (TENS) and neuromuscular electrical stimulators. Rule 4123-6-43
Oklahoma issued a release stating that the NCCI Workers' Compensation Loss Costs have decreased, and the new loss cost will be reviewed and are expected to go into effect January 1, 2017. OK September 9, 2016 Release
Oregon issued a bulletin telling insurers how to apply employer-paid medical reimbursement claim costs for individual claims for unit statistical reporting purposes and provides updated maximum reimbursement amounts. Bulletin 345 (revised)
CUSTOM RESEARCH – WE CAN HELP!
First Consulting has the experience and resources to quickly complete Research projects, which allows your staff to stay focused on their existing work. Here are just a few of the ways that we can help:
EXPANDING TO NEW STATES
- Research on state laws for licensing or policy needs or operational requirements
PRODUCT DEVELOPMENT
- If you are revising policy forms or rates and you need research on state-specific requirements
- We can help with research on a particular type of coverage like:
- Sharing economy
- Drones for limiting coverage or providing specific enhancements
- Or any other coverage
- Research on competitor filings
MARKET REGULATION COMPLIANCE
- Specific research in states for:
- New lines of business
- New programs
Best of all, we can survey insurance regulators anonymously on your behalf.
Please click here for a brief overview of our custom research or give me a call. I’d like to help.
Joe Bieniek
816.512.2832
Joe.Bieniek@FirstConsulting.com
COMPLIANCE TRAINING FOR HOME OFFICE AND OPERATIONS STAFF
Anti-Fraud
OFAC (Office of Foreign Assets Control)
Privacy
Training is designed for Underwriters, call center personnel, claims handlers, others working with customers and data:
- Designed to fulfill state and/or federal training requirements
- Available on-line 24/7 or via Webinar
- Includes Red Flags or Compliance Checklists for easy desk reference
- Available for all lines: Life, Annuity, Health, Property & Casualty, TPAs and Life Settlement
Click here to learn more about the specific details of each course.
Contact Us today for additional information or to schedule a free training demo.
C. J. Rathbun
Senior Consultant
816.391.2740
INCLUDE FIRST CONSULTING IN YOUR 2017 BUDGET
It’s hard to believe that next year’s budget process is already upon us. However, including First Consulting in your 2017 Compliance budget will allow you to accomplish more!
Here are just a few ways that First Consulting can help:
Contact me for a no obligation proposal and cost estimate.
Sean Cox
Sean.Cox@FirstConsulting.com
816.391.2737
