Property & Casualty News
September 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!
ADJUSTERS
Illinois published a bulletin providing guidance on compliance with the public adjuster regulations. The bulletin summarizes recent changes including a 10% cap on compensation in certain circumstances, allowance for cancellation process and timing. Bulletin 2024-16
Rhode Island's Superintendent of Insurance clarifies the continuing education requirement for resident independent adjusters, resident public adjusters and nonresident adjuster licensees. Bulletin 2024-7
AGENT / PRODUCER LICENSING AND APPOINTMENT
New Mexico's Producer Licensing Bureau announced a 90-day temporary insurance producer license is available while the Department is switching insurance examination vendors. Notice posted on August 29, 2024
Rhode Island's Superintendent of Insurance notified producers and insurers that all appointments and terminations must be filed through NIPR beginning January 1,2025. All persons who would have been reported on the ACPR that would have been due March 1, 2025, must instead have their appointment filed through NIPR in January, even if that individual is no longer appointed in January. Bulletin 2024-6
AUTOMOBILE INSURANCE
California adopted updates to its proof of insurance card requirements, including the option to offer optional electronic proof of liability and updated terminology. T 13 Section 82
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE
Mississippi published a bulletin providing guidance regarding SB 2130. The new law provides that an insurer may not cancel or deny coverage or non-renew coverage due SOLELY to the age of the roof. The age of the roof may be taken into consideration when considering whether to cancel coverage. Bulletin 2024-2
CLAIMS / CLAIMS ISSUES
Louisiana published guidance on recent legislative changes mandating fair practices in the insurance claims process. The definition of a fraudulent insurance act has been broadened to include false or misleading statements, estimates, invoices, bids, proposals, proof of loss or any other document that misrepresents the loss. Advisory Letter 2024-01
CYBERSECURITY
Alaska enacted SB 134, requiring insurers to develop a program and structure to address insurance data security. It also sets certain standards for handling a cybersecurity breach and providing notification. SB 134
Puerto Rico issued a regulation containing cybersecurity standards for the insurance industry. Rule 108
DISASTER / CATASTROPHIC EVENT
New Mexico's Insurance Department informs carriers that have issued P&C policies covering risks in areas impacted by the Salt and South Fork Fires that a catastrophic loss has been declared on September 6, 2024. Insurers must settle each catastrophic claim, property insurance claim or vehicle physical damage claim within 90 days from the declaration. Corrected Bulletin 2024-015
DISASTER PREPAREDNESS
Virginia's Bureau of Insurance now requires all property and casualty carriers writing in the state to update the new contact Information field in SIRCON for your company's Catastrophe Team Coordinator. A link is provided. SCC Notice dated August 27, 2024
FILINGS: PROPERTY / CASUALTY
Alabama published a bulletin updating the required filing fees and requiring the use of EFT for certain filings. Bulletin 2024-04
Florida updated its requirements for the submission of an actuarial memorandum, ensuring rates are not excessive or discriminatory. For companies averaging hurricane models, the company must include additional information in the memorandum, including an explanation of whether the same averaged model is being used throughout the state or if it is a weighted average. 69O-170.0135
Nevada's Insurance Commissioner reminds insurers that any mathematical model used in underwriting or rating of personal lines insurance must be filed for prior approval. Examples of models and rules required to be filed are given. Bulletin 24-002
MARKET CONDUCT EXAMINATIONS
Illinois enacted amendments to its market conduct regulation, including updated definitions, powers of the department and deadlines for responses, among other things. The amendments also address the confidentiality of findings. SB 1479
MISCELLANEOUS
Kentucky published a bulletin announcing new premium rates for the Mine Subsidence Insurance Program. The bulletin notifies companies that all insurers providing mine subsidence coverage will need to re-execute reinsurance agreements due to changes in the total insured value eligible for reinsurance. Bulletin 2024-07
New Hampshire passed a law requiring changes to retail installment contracts for motor vehicles. Any insurance included in the contract must adhere to certain premium limits. HB 1243
North Carolina codified the law of tenancy in common as recommended by the Bar Association. HB 556
Oklahoma's Insurance Commissioner informed all persons and organizations that all contact information must be kept current and a change in contact information must be submitted within 20 days of the change. Bulletin 2024-08
The Federal Trade Commission amended its Telemarketing Sales Rule by updating the fees charged to entities accessing the National Do Not Call Registry. 16 CFR 310.8
PROPERTY INSURANCE
California published a bulletin describing the process through which insurers may seek approval to recoup assessments under the FAIR Plan. The FAIR Plan is California's program to make basic property insurance available to California consumers who could not otherwise obtain coverage. Bulletin 2024-8
Maryland published a bulletin providing notice of amendments affecting the responsibility for providing coverage of various types of condominium units. Beginning 10/01/24, the homeowners association/council, for those developments with both attached and detached units, will be responsible for maintaining property insurance on the units as well as common areas. Bulletin 24-22
Michigan published a bulletin announcing the annual adjustment of the fire insurance maximum escrow. Effective 07/01/24, the new maximum is $24,000. Bulletin 2024-21-INS
PUBLIC RECORDS
Colorado published a bulletin updating public records procedures. The bulletin outlines when and how records may be requested as well as the fees for doing so. Amended Bulletin B-1.6
REINSURANCE
New Jersey published a list of accredited reinsurers for which insurers domiciled, licensed or eligible to write surplus lines are allowed to take full credit for reinsurance ceded until September 1, 2025. Notice dated September 6, 2024
REPORTS - DATA CALLS & OTHER REPORTS
Florida amended its rule updating the schedule of fines for late filed reports. It has added a list of mitigating or aggravating factors to be considered. Rule 69O-207.001
SERVICE CONTRACTS / WARRANTY INSURANCE
Oklahoma's Insurance Commissioner announced numerous revisions to the Service Warranty Act, including licensing requirements effective November 1, 2024, as a result of SB 541. Bulletin 2024-06
SURPLUS LINES
New Jersey published a list of active surplus lines foreign and domestic insurers. Notice dated August 27, 2024
THIRD PARTY ADMINISTRATORS
Puerto Rico passed a law requiring third party administrators to be registered. The law also covers the rules governing contracting with insurers, TPA responsibilities, and other requirements. HB 303
WORKERS' COMPENSATION
Indiana published a circular announcing the adoption of a new edition of the NCCI Experience Rating Plan Manual for Workers Compensation and Employer Liability. There were no changes that will result in premium impact. Updates include changes to intrastate and interstate rated risks, Loss limitations and others. Circular 2024-06
New Jersey increased the maximum allowable witness and reasonable attorney fees from 20% to 25% of the judgment in workers' compensation cases. SB 2822
New Mexico Workers' Compensation Administration published updated workers' compensation and occupational disease disability rates through December 2025. Notice dated July 22, 2024
Oregon's Workers' Compensation Division advised insurers and self-insured employers how to apply employer-reimbursed medical service costs for individual claims. It also provides updated maximum reimbursement amounts. Bulletin 345 (Revised)