Property & Casualty News
October 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
New Mexico's Superintendent of Insurance notified nonresident adjusters that the effective date for changes enacted under the administrative code will not be enforced until license renewals with expiration dates of April 2026 forward instead of April 1, 2025. Bulletin 2024-019
AGENT / PRODUCER LICENSING AND APPOINTMENT
Delaware amended its law to reinstate language that allows an insurance agent or broker to adjust claims on behalf of an insurer without obtaining an adjuster's license. HB 379
New Mexico's Superintendent of Insurance notified companies with New Mexico agent appointments of the renewal process and deadline dates for renewal of agent appointments in 2025. Annual Appointment Renewal Notice dated October 2, 2024
AUTOMOBILE INSURANCE
Delaware enacted a law that changes the liability insurance for rental vehicles. Under this law the minimum level of coverage required for a vehicle owner's policy of liability insurance is also required for a vehicle owner's rental of a vehicle. SB 257
CANCELLATION / NON-RENEWAL / PREMIUM OR COVERAGE
California amended the notice requirements for cancellation of automobile insurance policies due to nonpayment of premiums. This bill clarifies that the 10-day notice period for nonpayment will not commence until after the premium due date. A cancellation for nonpayment will become effective if the insured has not resolved the identified nonpayment by the end of the 10-day period. SB 1295
Delaware requires insurers to deliver any homeowners’ notices of cancellation or nonrenewal via USPS certified mail or USPS Intelligent Mail barcode, except in cases of nonpayment of premium. SB 200
Texas adopted a rule that requires a carrier to send notices in both electronic form and in paper or another nonelectronic form to a party when cancelling or terminating a policy. 28 TAC 21.501
CAPTIVES
Delaware amended a law regarding captive insurance to provide the Commissioner with greater flexibility in approving financial institutions authorized to hold the required capital and surplus for captive insurance companies. The amendments allow assets to be held in financial institutions other than banks and permit holdings outside of Delaware when the type of risk does not necessitate it. SB 249
CONFIDENTIALITY / PRIVACY
California amended its Consumer Privacy Act of 2018 to require businesses that receive consumer personal information as part of a merger, or other transaction, to comply with a consumer's opt-out request made to the original business. AB 1824
California enacted legislation to amend the California Consumer Privacy Act of 2018 (CCPA) by redefining "sensitive personal information" to include "neural data." Neural data is defined as information generated by measuring the activity of a consumer's central or peripheral nervous system and is not inferred from nonneural information. SB 1223
CYBERSECURITY
California passed a bill that requires automatic dialing-announcing devices to inform recipients if the prerecorded message uses an artificial voice. AB 2905
New York State Department of Financial Services alerted all regulated entities to take immediate action to thwart a cybersecurity threat currently being used to target IT help desks and call centers to convince them to reset passwords and divert multi-factor authentication to new devices. Industry Letter dated September 27, 2024
DISASTER / CATASTROPHIC EVENT
North Carolina's Insurance Department announced the activation of the Disaster Mediation Program to facilitate effective, fair and timely resolution of insurance claims arising out of damages to residential property as a result of Tropical Storm Helene disaster. Bulletin 24-B-14
HOLDING COMPANIES
Washington adopted a new regulation dealing with the group capital calculation for insurance holding company systems. WAC 284-18-447
MISCELLANEOUS
California passed a bill that requires a pet insurance carrier to disclose certain items that reduce coverage or increase premiums such as increased premiums based on age of pet, change in geographic location of the insured, and required medical examination to effectuate coverage or impose a waiting period. SB 1217
Michigan's Department of Insurance and Financial Services updated the list of municipalities participating in the Fire Insurance Withholding Program, effective November 1, 2024. This program allows municipalities to escrow 25% of fire insurance settlements to cover costs from fire and explosion losses. Regulatory Activity Notice dated October 1, 2024
Wisconsin's Commissioner of Insurance notified insurers, agents and other licensees that they are expected to provide accurate and up-to-date contact information for the Office of Insurance Commissioner on policy forms, notices and other described documents. As of November 4, 2024, the Commissioner's Office is relocating to a new address. Bulletin dated October 8, 2024
PREMIUM TAX
Delaware Department of Insurance issued a reminder to all admitted and approved domestic and foreign insurance companies including accredited reinsurers, surplus lines brokers and others about the statutory requirements for premium tax payments. Payments must be made through the OPTins system using the quarterly tax report form. Domestic and Foreign Bulletin No. 147
RATEMAKING
Pennsylvania's Insurance Commissioner informs property and casualty companies and rating organizations that product filings should not be submitted containing rate ranges, except schedule rating which is confined to commercial lines products. Rate ranges are not a substitute for the statutory requirement to file a classification plan. The Department adds that there are numerous non-compliant filings. Notice 2024-15 dated September 14, 2024
REPORTS - DATA CALLS & OTHER REPORTS
North Carolina's Insurance Department notified insurers writing nonfleet private passenger motor vehicle physical damage and homeowners residential property with not more than four housing units of the requirement to comply with a data call by October 28, 2024. Bulletin 24-B-11
SURPLUS LINES
California's Department of Insurance issued a bulletin to surplus lines brokers and admitted insurers regarding the Export List. The bulletin confirms that certain insurance coverages can be placed with non-admitted insurers due to a lack of adequate market among admitted insurers. Bulletin 2024-10
New Jersey notified surplus lines producers of an updated list of eligible domestic, foreign and alien surplus lines insurers in New Jersey. Notice dated October 8, 2024
Wyoming Insurance Department notified all surplus lines insurers doing business in Wyoming that requested policy data must be filed electronically via the SLIP system instead of via paper filing. Bulletin 09-2024
WORKERS' COMPENSATION
Arkansas Workers' Compensation Commission (AWCC) published the workers' compensation rates for 2025. The maximum compensation rates for Total Disability and for Permanent Partial Disability are set forth. AWCC Advisory 2000-1 dated October 1, 2024
California extended the authorization for employers to deposit workers' compensation disability indemnity payments into prepaid card accounts until January 1, 2027. AB 1239
California's Division of Workers’ Compensation (DWC) posted an order adjusting the Pathology and Clinical Laboratory section of the Official Medical Fee Schedule to align with the 2024 updates in the Medicare payment system. DWC Notice dated October 2, 2024
Indiana's Department of Insurance approved and filed the 2025 Advisory Rate Filing, effective January 1, 2025, which decreases the overall advisory loss cost level by 6.8% and both the advisory and assigned risk rate levels by 7.2%. Circular 2024-08
Massachusetts’ Workers' Compensation Rating and Inspection Bureau announced a new payroll determination method for sole proprietors, partners in legal partnerships, and members of LLCs who elect to become employees to obtain workers' compensation insurance coverage. The Basis of Premium is $66,600. Circular Letter 2437
Massachusetts' Office of Labor and Workforce Development provided guidelines on workers' compensation-related adjustment for attorneys' fee schedule, cost-of-living adjustments and maximum and minimum weekly benefits. Circular Letter 361
New Jersey's Department of Labor and Workforce Development announced new 2025 rates for Workers' Compensation Benefits. Labor and Workforce Development Notice dated September 30, 2024
Oregon's Workers' Compensation Division notified workers' compensation insurers and self-insured employers of the annual increase in Retroactive Program benefits, the methods used calculate these benefits and determine the amount of Retroactive Program reimbursement. Bulletin 393
Rhode Island's Workers' Compensation Division announced that the Workers' Compensation assessment rate is 6.50% Information Letter 2024-05
The Texas Department of Insurance announced state average weekly wage maximum and minimum weekly benefits in the Texas Workers' Compensation Act for the period October 1, 2024 through September 30, 2025. Notice dated September 18, 2024