Property & Casualty News
April 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!
AUTOMOBILE INSURANCE
Mississippi revised its Regulation on the Mississippi Automobile Insurance Plan. One of the changes is to allow the plan to issue private passenger motor vehicle policies and commercial motor vehicle policies in the name of the Plan. The policies will be recognized as if issued by an insurance company authorized to issue insurance in Mississippi. This regulation is final and was submitted for publication to the Secretary of State on April 12, 2022. Regulation 19-4-3.01+
Virginia's Bureau of Insurance approved amendments to various sections of the Virginia Automobile Insurance Plan Manual for Commercial Auto to facilitate the transition of the countrywide CAIP servicing carrier with a countrywide service provider effective September 1, 2022. Administrative Order 12146
CREDIT FOR REINSURANCE
Maine approved amendments to Rule 740 dealing with Credit for Reinsurance. The changes are consistent with provisions of the National Association of Insurance Commissioners model rule 786. Rule 740
CYBERSECURITY
Connecticut's Insurance Commissioner asks all domestic insurers to be vigilant in their efforts to protect their operations, consumer data and investments given the events in Eastern Europe and the threat of cyber-attacks. In addition, insurers should review investments and consider rebalancing them as appropriate given financial sanctions levied against Russia and Belarus. Other instructions are given. Notice dated March 3, 2022
Virginia's Commissioner of Insurance advises all licensees to be aware of the increased risk of cyber-attacks on U.S. targets. Licensees should review cybersecurity guidance and their responsibilities under Virginia law. Letter dated March 7, 2022
DISASTER / CATASTROPHIC EVENT
Georgia's Insurance Commissioner details how emergency disaster adjuster status may be requested for Georgia registered staff adjusters, out-of-state staff adjusters, or out-of-state licensees. The Governor declared an emergency on April 6, 2022, due to the severe storms and tornadoes on April 5. Bulletin 22-X-3
FRAUD / ANTI-FRAUD
Oklahoma's Insurance Department announces that the anti-fraud assessment annual fee is due by July 1, 2022. The fee must be paid electronically. Instructions are to register with OPTins early as the process can take up to two weeks to complete. Notice dated April 11, 2022
INSURER INVESTMENTS / SECURITIES
California's Insurance Commissioner calls on insurance companies to halt the purchase of Russian debt, prohibit any money to flow from California to Russia, and re-evaluate their investment in the stock of multinational corporations, assets and debt that have some relation to Russia's financial markets. Notice dated March 14, 2022
Georgia's Commissioner of Insurance urges insurance companies to begin the process of eliminating any financial support, via investments or business operations, for the Russian regime. Bulletin 22-EX-2
MISCELLANEOUS
California's Commissioner of Insurance announced that a group of regulators adopted a new standard for insurance companies to report their climate-related risks, in alignment with the international Task Force on Climate-Related Financial Disclosures (TCFD). Fifteen states have committed to using the NAIC survey in 2022 for companies licensed in their states. Twenty-eight insurance companies provided TCFD compliant reports in 2021. Press Release dated April 8, 2022
Maine passed the Pet Insurance Act which establishes the requirements for the sale of pet insurance. This law follows the NAIC model law and is effective on January 1, 2023. SP 186
The Texas Commissioner of Insurance approved the Texas Windstorm Insurance Association submission of revised declaration pages and application forms for approval. These apply to residential and commercial coverages. Order 2022-7292 dated April 11, 2022
OMNIBUS LEGISLATION
Virginia's laws regulating rates for certain coverages such as personal injury liability, property damage liability, and motor vehicle, etc. have been revised. The revisions include notice provisions, rate regulation, and repeal of a statute regarding air trip accident policies. HB 62
PERSONAL LINES INSURANCE
Washington State, Thurston County Superior Court Judge granted an extended stay of the state's rule temporarily banning credit scoring in personal lines of insurance, including auto, homeowner, and renter insurance, until all appeals are final. All the parties agreed to the extended stay to help provide stability for consumers and the market as the credit scoring rule moves through the court. American P&C Ins Assoc, et al v. Washington Ins. Comm, Superior Ct No. 22-2-00180-34
PROFESSIONAL LIABILITY INSURANCE
Florida created the Professional Counselors Licensure Compact to provide for the mutual recognition of state licenses allowing the interstate practice of licensed professional mental health counseling. The law will go into effect when ten states enact the Compact. HB 1521
Maryland adopted a regulation requiring agents to act in the best interest of a consumer when making a recommendation of an annuity. Neither the agent's nor insurer's financial interests can be placed ahead of the consumer's interest. COMAR 31.09.12.01
PROPERTY INSURANCE
Michigan's Department of Insurance and Financial Services published an updated list of Michigan municipalities participating in the fire insurance withholding program. Edition 142
SURPLUS LINES
Pennsylvania's Insurance Commissioner lists certain insurance coverages that are generally unavailable in the authorized market at the present time. The Export List defines types of coverages insurers can place in the surplus lines market without searching among insurers admitted to do business in Pennsylvania. Notice of April 9, 2022
TITLE INSURANCE / AGENTS
New Mexico's Superintendent of Insurance approved an overall decrease of 6% in basic title insurance premium rates beginning July 1, 2022. Release dated March 31, 2022
WORKERS' COMPENSATION
New Jersey published the July 2022 Workers' Compensation Insurance Plan policy expirations and updates to the Workers' Compensation Insurance Plan. Circular Letter 2028
Ohio's Bureau of Workers' Compensation amends the Application for Death Benefits and Limitations on the Filing of Fee Bills sections of the Claims Procedure Regulation. Rule 4123-3-07 and -23
Texas' Department of Insurance adopted the National Council on Compensation Insurance (NCCI) Item E - Revisions for New York Withdrawal from the NCCI Interstate Experience Rating Plan. New York experience will no longer be used in the calculation of interstate experience rating modifications for risks with rating effective dates on or after October 1, 2022. Order 2022-7291 dated April 8, 2022
Texas' Division of Workers' Compensation notified carriers writing workers' compensation insurance of Verisk as the data collection agent for claim EDI release 3.1 data. Insurance carriers, trading partners and claim administrators should complete their registration on the Verisk website no later than January 12, 2023. Information is included regarding other releases that require registration. Bills to carriers will be sent soon. Letter dated April 4, 2022
Virginia amends the Cost of Living Supplements for Total Incapacity under Workers' Compensation for a person receiving disability benefits but not benefits under the federal Old Age, Survivors and Disability Insurance program. SB 677