Property and Casualty News
May 2025
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
Mississippi established fiduciary requirements for public adjusters handling funds on behalf of insureds, mandating that all funds be deposited into separate fiduciary trust accounts and disbursed within 30 days of invoice approval. The bill expands the definition of public adjusters, sets licensing criteria including a $50,000 bond requirement, and introduces stricter rules for compensation, including limits on fees and contract terms. HB 1174
AUTOMOBILE INSURANCE
Michigan issued a bulletin to update no-fault automobile insurers and health care providers on payment and billing requirements. The bulletin clarifies that the amended MCL 500.3157 fee schedule does not apply to treatment for injuries from accidents occurring before June 11, 2019, and reaffirms that such claims are subject to the prior “reasonableness” standard. Bulletin 2025-11-INS
New Hampshire issued a bulletin regarding virtual vehicle claims adjustments, clarifying insurers' obligations under the Unfair Claims Settlement Practices law. The bulletin emphasizes that while virtual claims can streamline the process, insurers must offer in-person inspections if requested by consumers and cannot deny such requests. Unreasonable delays in providing in-person inspections may violate the law. Bulletin INS 25-031-AB
Rhode Island issued an alert to remind auto insurers and the repair industry stakeholders about the legal prohibitions against steering. The alert emphasizes that insurers cannot require or suggest a specific repair facility for insureds and must inform consumers of their right to freely choose their repair shop. Noncompliance may result in penalties. Industry Alert 2025-2
Virginia issued an administrative letter to motor vehicle insurers, outlining the requirements for issuing private passenger automobile policies, particularly concerning premium increases and point assignments after accidents or motor vehicle convictions. The letter provides guidance on how insurers must apply these increases, consolidates prior guidance, and withdraws several administrative letters. Administrative Letter 2025-01
COMMERCIAL LINES INSURANCE
Arizona adopted the Uniform Special Deposits Act which governs how beneficiaries receive payments from special deposits following a triggering event. The law defines the roles and responsibilities of banks, clarifies that no fiduciary duty exists in special deposit relationships, restricts how account agreements can be amended or interpreted, and limits banks’ liability to direct damages for noncompliance. SB 1206
CONFIDENTIALITY / PRIVACY
Rhode Island released a bulletin outlining the implementation of the state's new insurance data security statute which applies to both foreign and domestic insurers. The bulletin clarifies the requirements under Rhode Island's 2024 Public Laws Chapters 354 and 355, emphasizing the need for insurers to protect consumer data and detailing compliance expectations, including submitting annual statements by April 15 annually. Bulletin 2025-1
CYBERSECURITY
Arkansas enacted the Children and Teens' Online Privacy Protection Act to regulate how online operators collect, use, and disclose personal information from users aged 16 and under. The law requires consent, clear notice, and data security while banning targeted advertising to children and teens. It protects user privacy without mandating age verification or data collection. HB 1717
DISCLOSURE REQUIREMENTS
Louisiana implemented Act 611, requiring all authorized property and casualty insurers to disclose available discounts for homeowners’ and private passenger motor vehicle insurance policies. Insurers must clearly present these discount opportunities and provide them electronically or in writing with each new policy and renewal. Bulletin 2025-02
HOLDING COMPANIES
New Mexico updated its insurance holding company law to require group capital calculation reports and liquidity stress tests. The updates include amendments to definitions and filings under the Insurance Code, a modified examination timeline for Health Maintenance Organizations, and the enactment of new provisions for group capital calculations and liquidity stress tests. HB 398
MISCELLANEOUS
Arkansas enacted a new law to ensure local access to prescription medications by regulating how pharmaceutical manufacturers distribute drugs within the state. The legislation prohibits manufacturers from restricting access to out-of-state networks beyond three months without ensuring availability through local pharmacies and requires a wholesale distributor permit in good standing. All manufacturers must meet a September 1, 2026, compliance deadline. HB 1531
Florida adopted the Pet Insurance Act to regulate the sale of pet insurance and ensure that wellness programs are marketed separately with clear, distinct costs and terms. The law prohibits deceptive advertising, requires transparency on policy exclusions and coverage, and holds insurers accountable for training agents and properly handling claims. HB 655
Georgia established a regulatory framework for litigation financing by requiring registration with the Department of Banking and Finance, prohibiting certain practices, and mandating written contracts with specific consumer protections. The law bars unregistered financiers from operating, imposes penalties for violations, and allows discovery of large litigation funding agreements in civil cases. SB 69
Michigan updated the list of municipalities participating in the Fire Insurance Withholding Program, which allows certain municipalities to escrow 25% of fire insurance settlements for losses to real property. This updated list supersedes all prior editions and includes effective dates for new municipalities, which require at least 30 days' notice before applying withholding provisions. Fire Insurance Withholding Program List Edition 179
PERSONAL LINES INSURANCE
Oklahoma announced a $150 assessment for all property and casualty insurers (licensed for both property and casualty in the state) to fund the Oklahoma Market Assistance Program (OK-MAP), which helps consumers find homeowners’ insurance. The assessment is due by September 1, 2025, and nonpayment may result in fines or revocation of an insurer’s certificate of authority. Bulletin 2025-02
West Virginia issued a bulletin advising insurers on the use of aerial imagery in homeowners insurance. It mandates insurers ensure aerial imagery is current, clear, and used alongside other tools in decision-making, and requires that consumers have access to the imagery if it influences policy nonrenewal. The bulletin also highlights the need for transparent communication, allowing homeowners to review and contest the imagery used in coverage decisions. Bulletin 2025-02
PHARMACY BENEFIT MANAGERS
Alabama strengthened its regulation of pharmacy benefits managers (PBMs) by establishing new prohibitions and enabling civil actions for parties harmed by PBM violations. The bill mandates minimum reimbursements for independent pharmacies, requires PBMs to pass 100% of manufacturer rebates to clients, and prohibits practices like spread pricing and steering. SB 252
Arkansas amended the Pharmacy Benefits Manager Licensure Act to strengthen regulation of PBMs and healthcare payors. The legislation defines key terms like “carve-out network” and “ghost network,” prohibits unfair practices such as restricting pharmacy choice or misrepresenting provider availability and bans PBMs from imposing unapproved accreditation standards. SB 104
PREMIUM TAX
Delaware issued a bulletin implementing new premium allocation requirements for property and casualty insurers under HB 371. The bulletin mandates the use of a Geographic Information System (GIS) for precise geographic premium reporting starting with the 2023 premium tax report. It also warns insurers against relying solely on ZIP codes for determining risk location and defines "City of Wilmington" using specific ZIP codes. Domestic-Foreign Insurers Bulletin 151
REPORTS - DATA CALLS & OTHER REPORTS
Idaho issued a mandatory data call requiring property and casualty insurers writing homeowners and dwelling fire insurance in the state to submit detailed policy and claims data from 2018 to 2024. The data will support analysis of wildfire-related risk, affordability, and market dynamics. Insurers meeting specific premium thresholds must submit reports by May 20, 2025, using the state’s official reporting template. Bulletin 25-02
Washington informs all property and casualty insurers that they must complete and submit a Special Liability Report Form for the 2024 calendar year. Insurers must submit the form via e-mail to the specified address, ensuring it follows the official layout and avoids including it with other filings such as the Annual Statement or premium tax filing. Special Liability Report Instructions 2024
SERVICE CONTRACTS / WARRANTY INSURANCE
Arizona issued a Policy Statement to guide insurers on complying with service contract regulations. The Department emphasizes that entities offering service contracts must obtain a service company permit and provide a transition period until at least January 1, 2027. Arizona also invites stakeholders to a May 2025 meeting to discuss compliance. Substantive Policy Statement 2025-03 (INS)
SURPLUS LINES
New Jersey's Department of Insurance published updated lists of eligible foreign, domestic, and alien surplus line insurers, including changes such as additions, deletions, name updates, and redomiciled insurers. These updates reflect the latest information from the NAIC Quarterly Listing of Alien Insurers. Notice Dated 4/14/25
TITLE INSURANCE / AGENTS
U.S. Financial Crimes Enforcement Network (FinCEN) issued a Geographic Targeting Order (GTO) for title insurance companies to enhance transparency in residential real estate transactions. The GTO mandates reporting for transactions involving the purchase of residential properties by legal entities with no external financing, requiring title insurance companies to report qualifying transactions to FinCEN within 30 days. The order applies to specific purchase price thresholds and types of payments and requires title insurance companies to retain records for five years. FinCEN Notice Dated 4/14/25
Utah reminds individual and agency title insurance producers to keep their licensing files up to date with the most current information. The Department provides an analysis of relevant sections of the Insurance Code and Insurance Regulation, emphasizing requirements for title insurance agents to maintain accurate business and residence addresses, keep records, and properly reinstate inactive licenses. Bulletin 2025-4
TRADE PRACTICES
New Mexico amended its insurance laws to define treating an insured's inquiry about damage or loss as a claim—when it is not covered by the policy and no payment is made—as an unfair and deceptive practice if performed frequently enough to indicate a general business practice. SB 221
TRAVEL INSURANCE
New Mexico enacted the Travel Insurance Act, creating a regulatory framework for the sale, administration, and provision of travel insurance products. The Act prohibits unfair practices, establishes licensing requirements for travel insurance producers, regulates marketing practices, and outlines eligibility and underwriting standards for travel protection plans. SB 168
WORKERS' COMPENSATION
Arizona updated its workers' compensation laws by increasing the dependent allowance for total disability from $25 to $100 per month. It broadens the definition of "interested party" to include third-party administrators, clarifies how service of notice can be made, and expands fee schedule regulations. SB 1551
Arkansas amended its Workers' Compensation Law by revising the definition of “employee” and replacing the traditional twenty-factor test with the federal Empower Independent Contractors Act criteria for determining employment status. SB 598
Delaware's Compensation Rating Bureau (DCRB) published the Policy Timeliness Compliance Guide to assist insurers in meeting new workers' compensation policy reporting requirements under Phase 1 of the 2025 Policy Data Quality Assurance Program (PDQAP), effective July 1, 2025. The guide outlines how to use the Policy Data Manager (PDM) system to monitor reporting timeliness, avoid fines ranging from $50 to $2,000 for late submissions, and manage policy notifications. Insurers must review the guide, confirm PDM access, and update Policy Contacts ahead of the compliance deadline. DCRB Circular 1050
Ohio amended regulations under the Health Partnership Program, including updates to the 2025 Professional Provider Medical Services Fee Schedule, outpatient medication formularies, and payment rules for hospital and ambulatory surgical center services. The amendments revise fee schedules, adjust medication coverage, and update payment factors for services provided to injured workers. Rule 4123-6-08
Oklahoma's Workers' Compensation Commission announced updates to CC-Form 3. The revised form will include new fields for indicating the need for a courtroom interpreter, the claimant's attorney's email address, and clearer language to distinguish between initial and additional benefits claims. Notice Dated 4/25/25
West Virginia adopted a bill to simplify insurance and workers' compensation regulations by removing certain reporting requirements, including those related to PTSD claims for first responders and flood insurance notifications. It also updates provisions for state agency workers' compensation programs and eliminates outdated sections. SB 856