Property and Casualty News
June 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!
AGENT / PRODUCER CONTINUING EDUCATION
Louisiana amended licensure and continuing education requirements for insurance producers, consultants, adjusters, and public adjusters by increasing mandatory continuing education hours focused on legislative updates and flood insurance, and raising the unlicensed claims adjustment threshold from $500 to $2,000. SB 40
AGENT / PRODUCER LICENSING AND APPOINTMENT
Maine has ended online-proctored insurance licensing exams due to security concerns, requiring all future exams to be taken in person at Pearson VUE testing centers starting immediately. Notice Dated 5/9/25
Missouri announced that insurance producer exams must be scheduled and taken at physical testing centers, ending the use of the OnVue online proctoring service for new appointments. Scheduled OnVue exams will be honored through May 18, 2025, after which all exams must be rescheduled in person. Bulletin 25-03
AUTOMOBILE INSURANCE
Louisiana enacted new legislation prohibiting unauthorized aliens from receiving general damages or past and future wages in automobile accident claims, except when covered under an uninsured or underinsured motorist policy naming them as insured. HB 436
North Carolina approved revised private passenger auto and motorcycle insurance rates effective October 1, 2025. The final settlement includes a +5.0% overall rate increase for private passenger autos and a -16.3% decrease for motorcycle liability. Updates also include changes to class factors, deductibles, and extended transportation rates. Circular Letter A-25-3
CAPTIVES
Arizona adopted new legislation allowing captive insurers to apply for a certificate of dormancy through the Department of Insurance and Financial Institutions (DIFI). The law revises definitions, licensing procedures, and corporate governance rules, including reducing capital requirements for protected cell captive insurers. HB 2193
Georgia expanded the insurance and reinsurance activities allowed for limited purpose subsidiaries and captive insurance companies, broadening their operational scope and updating definitions. The changes allow limited purpose subsidiaries to be owned by sponsors and reinsure beyond their organizing reinsurer, while captive insurers can now engage in any DOI-approved insurance or reinsurance business. HB 348
Montana caps annual premium taxes for captive insurance companies at $100,000, excluding protected cell captives and special purpose captives with LLC series, effective for tax years after December 31, 2025. SB 60
COMMERCIAL LINES INSURANCE
Arizona enacted new legislation specifying that landlords are not liable for injuries or damages caused by assistance or service animals allowed as reasonable accommodations, while affirming that this exemption does not limit the rights of individuals with disabilities under fair housing laws. The law goes on to provide definitions and clarify the types of animals covered. HB 2068
Arizona established a new framework for wildfire mitigation planning by electric utilities and power entities, defining exclusive legal remedies for wildfire-related claims. The law requires power entities to submit Wildfire Mitigation Plans, shields compliant entities from certain negligence claims, and prohibits punitive damages or inverse condemnation claims unless strict evidentiary standards are met. HB 2201
Colorado enacted legislation to regulate foreign third-party litigation financing in civil actions, requiring foreign funders to disclose their identity and financing agreements to the Attorney General and comply with strict limitations to ensure transparency and protect national security interests. The law prohibits foreign funders from influencing legal strategies, sharing sensitive information, or using domestic entities to provide financing. HB 1329
DISASTER / CATASTROPHIC EVENT
Maryland’s Insurance Commissioner activated emergency regulations requiring property, casualty, life, and health insurers to provide a 60-day grace period for premium payments and other reasonable accommodations to policyholders and businesses in Allegany and Garrett Counties following the May 15, 2025, weather-related State of Emergency. Bulletin 25-8
DISASTER PREPAREDNESS
New York issued a new circular letter establishing updated disaster preparedness and response requirements for property/casualty insurers. The letter mandates pre-disaster data reporting, annual disaster and business continuity plans, and coordination with state agencies during emergencies. Circular Letter 2025-3
FILINGS: PROPERTY / CASUALTY
Massachusetts issued guidance requiring all home insurance providers to disclose flood coverage exclusions in policies issued or renewed on or after January 1, 2026, inform policyholders that standard home insurance does not cover flood damage, and encourage consideration of separate flood insurance. Insurers must submit a separate disclosure for approval by September 1, 2025. PC Filing Guidance Notice 2025-R
HOLDING COMPANIES
Oklahoma updated definitions, registration, and reporting requirements for insurer holding company systems. Insurers must now submit group capital calculations and Liquidity Stress Test results. The changes also clarify registration procedures, materiality thresholds, and conditions under which proprietary information may be shared or disclosed. HB 1497
MISCELLANEOUS
Hawaii enacted the Pet Insurance Act, establishing comprehensive regulations for pet insurance policies, including mandatory disclosures about coverage limits, waiting periods, and exclusions, as well as a 30-day free look period for consumers. The law requires clear separation and disclosure of wellness programs from insurance and mandates specific training for insurance producers selling pet policies. HB 544
Michigan released an updated list of municipalities participating in the Fire Insurance Withholding Program, detailing the applicable program sections for each municipality and replacing prior lists. Insurers must receive at least 30 days’ notice before new municipalities implement the program. Notice Dated 6/1/25
PERSONAL LINES INSURANCE
Colorado amended its homeowners insurance laws to prohibit insurers from denying, canceling, refusing to renew, or increasing premiums based solely on the breed or breed mix of a dog kept at a residence. Insurers may still take such actions if a specific dog is known to be dangerous or has been officially declared dangerous, and the provision now applies to all residential structures occupied by owners or renters. HB 1207
Colorado amended its homeowners’ insurance laws to clarify that insurers are to provide policyholders with a copy of their insurance policy, including the declaration page and endorsements, within three business days of a request. Insurers must also provide a certified copy within 30 calendar days of receiving a written request. HB 1322
Colorado now allows FAIR Plan member insurers to recoup startup fees through a transparent premium surcharge on property insurance policies over two years, subject to DOI approval and consumer protections. Insurers must disclose surcharges clearly, maintain records, and refund any excess collected beyond statutory limits. 3 CCR 702-5
Colorado strengthened tenant protections for individuals using housing subsidies by now prohibiting landlords from unreasonably delaying or refusing to cooperate with rental assistance applications. The law mandates a minimum of $5,000 in damages for proven discrimination based on subsidy use and requires courts to consider subsidy losses when awarding actual damages. HB 1240
Maryland now prohibits insurers from denying residential condominium insurance policies solely due to a coverage lapse caused by the insurer’s market withdrawal, provided the lapse is no longer than 90 days and required documentation is submitted. The law applies to new policies issued on or after January 1, 2026, and amends unfair underwriting practices under Title 27. HB 1148
Michigan reminds personal lines homeowners and dwelling insurers that any underwriting, rating, claims, or adverse decisions based on aerial imagery must comply with insurance laws ensuring accuracy, current property conditions, and consumer protections. Insurers must allow policyholders to review and dispute imagery findings before cancellations or nonrenewals, avoid using cosmetic roof issues as a basis for such actions, and conduct physical inspections when needed. Additionally, insurers must file underwriting rules with the DOI, provide annual notices informing consumers of their rights, and follow specific cancellation and nonrenewal procedures. Bulletin 2025-12-INS
Montana now requires admitted insurers using wildfire risk scores for rating residential property to disclose, upon request, details including the property's current wildfire risk score, score range, creator, creation date, and key adverse factors. This information must be provided within 30 days to insureds, producers, or applicants. HB 533
PROPERTY INSURANCE
Colorado enacted legislation requiring insurers that use wildfire or catastrophe risk models in underwriting homeowner and residential property insurance to submit detailed model information to the Commissioner and account for both property-specific and community-level wildfire mitigation efforts. Insurers must offer discounts for verified mitigation actions if such factors are not included in their models, provide clear public information on discounts and appeals, and issue annual notices to policyholders explaining wildfire risk scores and their impact. HB 1182
SURPLUS LINES
Alabama revised its regulations for nonresident surplus line brokers by requiring license applicants to submit a commissioner-specified form, pay the fee outlined in Section 27-4-2, and adhere to a license expiration date of December 31 in the year of issuance. SB 97
THIRD PARTY ADMINISTRATORS
Indiana issued a bulletin informing insurers, TPAs, and PBMs of new annual ownership reporting requirements starting July 1, 2025, under Public Law 239-2025. Reports must include detailed ownership information but exclude Social Security numbers, with penalties for late filings. Bulletin 278
WORKERS' COMPENSATION
Alabama’s Workers’ Compensation Division announced that, effective July 1, 2025, the maximum weekly workers' compensation benefit will be $1,172 and the minimum will be $322, based on the 2024 State Average Weekly Wage of $1,172.15 as determined on May 15, 2025. WC Notice Dated 5/20/25
California’s Workers' Compensation Insurance Rating Bureau (WCIRB) announced that the Department of Insurance approved all proposed amendments in its regulatory filing, with changes to the Uniform Statistical Reporting Plan, Miscellaneous Regulations, and Experience Rating Plan taking effect September 1, 2025. The amendments followed a public hearing and are summarized in a new WCIRB online reference guide, with full updates to be published on the WCIRB website. WCIRB Bulletin 2025-09
California’s Workers' Compensation Insurance Rating Bureau announced it will relocate its office from Oakland to San Francisco’s Financial District. The Bureau has published its new mailing address, will begin accepting mail at the new location immediately, with phone numbers remaining unchanged. WCIRB Bulletin 2025-08
Colorado amended its workers’ compensation laws to strengthen oversight of medical treatment authorization and improve injured workers’ access to care. Employers and insurers must now follow the Division of Workers' Compensation's utilization standards when responding to treatment requests, or risk mandatory payment for services deemed authorized. The law also revises the process for selecting treating physicians, expands employee rights to designate or change doctors, and introduces new disclosure and notification requirements. HB 1300
Delaware’s Compensation Rating Bureau updated its indemnity data call requirements by adding six new data fields to improve reporting accuracy. These changes apply starting with Q4 2025 data, and require mandatory testing by December 31, 2025. Updated manuals and resources are available on the DCRB website. DCRB Circular No. 1053
Montana updated its pharmacy laws and insurance regulations to restrict workers’ compensation prescription drug payments to in-state mail order pharmacies, allowing up to a 90-day supply, and require out-of-state mail order pharmacies to be properly registered in Montana. HB 794
Nebraska announced that the burial benefit under the Workers’ Compensation Act will increase to $11,900 effective July 1, 2025, as part of the Court’s annual benefit rate adjustment. WC Notice Dated 5/13/25
New Jersey’s Property-Liability Insurance Guaranty Association announced a 1% Workers’ Compensation Security Fund (WCSF) assessment for 2025, based on each carrier’s 2024 net direct written premium. Notices for the 2025 WCSF assessment will be issued on July 1, 2025. Payment is due by August 15, 2025. NJPLIGA Bulletin 2025-005