Industry News

Keep up to date with recent developments in the Insurance Industry


TEXAS: TDI Issues Hurricane Harvey Data Call

State: Texas
Posted: September 2017

The Texas Department of Insurance issued on Sept. 22 a data call and corresponding instructions for the data call.

This call is designed to provide TDI with immediate access to information necessary to determine the financial and other impacts of claims related to Hurricane Harvey on the various property and casualty insurers doing business in the State of Texas, and the property and casualty industry as a whole.

TDI directs all of the above-referenced insurers and their agents and representatives to provide data using the attached Hurricane Harvey reporting forms and instructions. You must complete and return your initial response to this data call no later than October 31, 2017. Subsequent submissions are due monthly.

You can read the bulletin about the data call here.

The initial response to the data call is due to TDI by Oct. 31.



Florida Allows Carriers to Apply an Insufficient Funds Fee

State: Florida
Posted: September 2017

Florida House Bill 359, effective June 23,2017, adds Section 627.4035(1)(b) which states that carriers are allowed to impose an insufficient funds fee of up to $15 per occurrence if the declined funds are made via a
debit card, credit card, electronic funds transfer (EFT), or electronic check. The insufficient funds fee is not
charged if the failure in payment resulted from fraud or misuse on the employer’s account from which the
payment was made and such fraud or misuse was not attributed to the employer.

Additionally, 627.162(5), Florida Statutes allows a carrier to impose a charge of $20 or 5% of the check
amount, whichever is greater, if the payment is made by check or draft and the instrument is returned
because of insufficient funds.
 

Louisiana Dental Insurance Amendment

State: Louisiana
Posted: August 2017

House Bill 165

Louisiana amended its law to require that dental benefit plan documentation identify the plan's insurer.  Every identification card, membership card, insurance coverage card, or other documentation of coverage issued to any policyholder or health plan participant by a health insurer for a plan that is fully insured shall include the phrase "Non-ERISA" prominently displayed on its face.   



Texas Revised Insurance Code Relating to Reinsurance

State: Texas
Posted: August 2017

Senate Bill 1070; 493.002+

Texas amended its Insurance Code relating to authorized reinsurance, financial statement credit and accounting for reinsurance



Texas Approved Legislation Relating to Public Schools Liability Insurance Coverage

State: Texas
Posted: August 2017

Texas House Bill No. 639

Texas approved legislation relating to the purchase of certain insurance coverage by public schools for the benefit of businesses and students participating in career and technology programs and providing for immunity from liability of certain public school students participating in career and technology programs.   Ed s 29.191; Ed s 29.192



Delaware Trade Practices: False or Misleading Representations Concerning How Insurance Rates Are Set in Delaware

State: Delaware
Posted: July 2017

Delaware Universally Applicable Bulletin No. 1

As a reminder to Insurers, it is the Department’s position that any explanation to any consumer that suggests the Department is responsible or otherwise the cause for any premium rate increase constitutes a violation of 18 Del. C § 2304(2) and will be prosecuted accordingly. 

Universally Applicable Bulleting No. 1 states that "Any and all persons and companies engaged in any aspect of the business of insurance in Delaware, regardless of the line or lines of insurance offered that, pursuant to 18 Del.C. 2304(2), it is unlawful to '...[make] any assertion, representation or statement with respect ot the business of insurance or with respect to any person in the conduct of the insurance business, which is untrue, deceptive, or misleading. "

Georgia Enacts Legislation Addressing Captive Insurance Companies

State: Georgia
Posted: July 2017

Georgia General Assembly: Senate Bill 173

Senate Bill 173 to amend Chapter 41 of Title 33 of the O.C.G.A., relating to captive insurance companies. SB 173 will do the following:
  • extensively revise certain provisions; to provide for change and revision of certain definitions
  • provide for scope of provisions and lines of businesses a captive insurance company may engage to add an agency captive insurance company with certain restrictions
  • change certificate of authority requirements
  • provide for board of managers
  • provide for captive corporate organization requirements making certain captives subject to Title 14
  • provide for certain exemptions; to provide for exceptions, fees, and articles of incorporation requirements; to provide for powers and requirements by the Commissioner
  • provide for related matters; to repeal conflicting laws; and for other purposes

Please see the   Georgia General Assembly website for full details and documentation.


 

All Workers’ Compensation Insurers in California, Notice Regarding Changes in and Exclusions to Definition of Employee (Officers and Members of Boards of Directors, and Partners)

State: California
Posted: October 2016

Action required by no later than November 15, 2016

 

October 17, 2016 California Department of Insurance Notification

As a result of Enactment of AB 2883, effective January 1, 2017 all workers' compensation insurance policies, including in-force policies, will be required to cover, among others, certain officers and directors of private corporations and working members of partnerships and limited liability companies that may have been previously excluded from coverage.

Insurers are required to provide notice to each employer that may have employees who are currently excluded from coverage and may be affected by this law change. Additionally, insurers are to determine and report to the WCIRB the premium and loss experience associated with those who have not executed a waiver as covered employees.

For additional requirements and information, refer to the October 17, 2016 California Department of Insurance Notification.



All Property and Casualty Insurers Authorized to do Business in Florida 2015 Profit and Contingency Factors

State: Florida
Posted: June 2016

OIR-16-04M – Informational Memorandum
Pursuant to Rule 69O-170.003, Florida Administrative Code, the Office of Insurance Regulation annually establishes underwriting profit and contingency factors that may be used in rate filings.  Insurers may use the referenced profit and contingency factors when they are unable to produce credible profit and contingency factors from their own data.
 
Martin & Company can help, please contact us today.
 

All Workers’ Compensation Insurers Authorized to Transact Insurance in Florida Unfiled Side Agreements

State: Florida
Posted: May 2016

OIR-16-03M – Informational Memorandum - this Memorandum addresses the use of unfiled side agreements in conjunction with Workers’ Compensation and Employer’s Liability insurance policies applicable to risks and exposures in Florida.
Section 627.091(1)Florida Statutes, provides in part: “As to workers’ compensation and employer’s liability insurances, every insurer shall file with the office every manual of classifications, rules, and rates, every rating plan, and every modification of any of the foregoing which it proposes to use.”
Section 627.191, Florida Statutes, prohibits insurers from making or issuing “a contract or policy of workers’ compensation or employer’s liability insurance except in accordance with the filings which are in effect for such insurer, as provided in the applicable provisions of this part, or in accordance with s. 627.171.” S
 
Martin & Company can help, please contact us today.
 

Personal Auto, Residential Property & Workers’ Compensation Underwriting Guidelines

State: Texas
Posted: May 2016

Action required by August 30, 2016


Filing requirements for Underwriting Guidelines (May 4, 2016)
Texas Administrative Code Section 5.9342 requires insurers writing the referenced lines of business to file a full copy of their underwriting guidelines with the TDI every three years. 

Texas prefers that the Underwriting Guidelines be submitted via SERFF.
 
Martin & Company can help, please contact us today.
 

All Insurers Licensed to Write Property and Casualty Compliance with Statutory Rate Standards in File-and-Use Lines of Insurance

State: Virginia
Posted: April 2016

Administrative Letter 2016-03 – Reminder to review the rate standards outlined in 38.2-1904.
“In order to comply with the rate standards, any rate differentials for the same coverage must be based on differences between expected losses and/or expenses.”
 
Martin & Company can help, please contact us today.

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