Keep up to date with recent developments in the Insurance Industry

In August 2022, California Department of Insurance released Bulletin 2022-11 to all admitted and non-admitted insurers writing residential property insurance in California. This Bulletin is in response to the mandatory moratorium on cancellations and non-renewals of policies of residentials property insurance after the declaration of a state of emergency. 

Use the PDF link below to learn more about Bulletin 2022-11. 

Download PDF

Background: - In May 2022, Kentucky was allocated over $74 million through HUD’s CDBG-Disaster Recovery (DR) program to help resiliently recover from the Severe, Storms, Flooding, Landslides and Mudslides, Straight-line Winds, and Tornadoes that hit the state in 2021 specifically known as FEMA-4595 and FEMA- 4630. In order to receive these funds, various assessments outlining current state needs will need to be completed, followed by an Action Plan that outlines proposed programs to address recovery and resilience in impacted communities.
 
Data Request - The Kentucky Department of Insurance is requesting insurers to report aggregate personal residence claims data, claims resulting in loss, and direct incurred losses ($) by the counties listed in the data request document or the appropriate zip code.
 
For specific instructions, please review the KDOI FEMA 4595 Data Request published by the Kentucky state DOI.
 
Martin & Company can help your company stay in compliance, please contact us today.

Background: On December 17, 2021, the State Corporation Commission issued an order (INS-2021-00092) repealing Chapter 340 entitled “Rules Governing Standards for the Content of Fire Insurance or Fire Insurance in Combination with Other Coverages effective January 1, 2022; to adopt a new Chapter 341 entitled “Rules Governing Standards for the Content of Dwelling Property Insurance Policies”; and to adopt a new Chapter 342 entitled “Rules Governing Standards for the Content of Homeowners Insurance Policies.”
 
Action:  Insurers and rate service organizations are required to submit filings for compliance with these chapters no later than December 31, 2022.
 
The Bureau encourages insurers and rate service organizations file the forms necessary for compliance with Chapters 341 and 342 as soon as possible. The Bureau is unable to grant extensions to the compliance dates.

For more information, please review the Bulletin published by the State Corporation Commission Bureau of Insurance

Martin & Company can help your company stay in compliance, please contact us today.

The Louisiana Department of Insurance (LOI) is requiring all authorized property
and casualty insurers, including insurers that write private and/or excess flood insurance
coverage and surplus lines insurers, (collectively, insurers) to complete the claims
reporting Excel spreadsheet. 

Check out Bulletin 2021-10 for more information. 

This Bulletin serves as notice that the New Mexico Office of Superintendent of
Insurance (OSI) is requiring all automobile insurers covering risks located in New Mexico to
adopt, on an immediate basis, a Disclosure and an Exclusion for use in every automobile policy,
whether such policy is now in existence or is to be issued in the future, as set forth in this
Bulletin. 

Please see Bulletin 2021-024 from the Office of Superintendent of Insurance for more information. 

The amended section of the regulation is intended to facilitate the transition to rate parity between policyholders of the same class and hazard to avoid unfairly discriminatory rating. The new section specifically addresses the practice of rate change limitations such as caps, ceilings, or floors to new and or existing policyholders.

Please see the Colorado Regulation Regulation 3 CCR 702 Reg. 5-1-20 s 1 for more information.
 

When insurers submit any amendments, changes to policies or endorsements, and revisions to a rule manual previously approved or filed by the Department - a red-lined version of the language and a memorandum or summary highlighting the changes must be submitted.

Arkansas Insurance Department requires insurance companies to pay a fee of fifty dollars ($50.00) for all property and casualty submissions.

Please see Bulletin 1-2021 to learn about the new filing requirements in Arkansas.

Texas 2020-6581, amends the notice that is to be provided with Workers’ Compensation policies, certificates or evidences of coverage. Effective July 1, 2021, The adopted amendment modifies the email address to "[email protected]" in the Spanish version of the notice (refer to Figure: 28 TAC §1.601(a)(2)(C) of §1.601).. The form of notice is not required to be filed with the Department.

In Bulletin 20-IB-3-11/23, The District of Columbia D.O.I. has announced the temporary postponement of all rate increases filed during the Public Health Emergency to provide further relief to policyholders. The postponement is effective immediately.

Martin & Company can help your company stay in compliance, please contact us today.
 

Your Terrorism Notices need to be updated to comply with the Terrorism Risk Insurance Program Reauthorization Act of 2019. 
 
Martin & Company's State Filing Task Team is here to help get the proper forms and rules filed to remain compliant.
•    We can assist with the development of revised materials
•    Filing the necessary notices, corresponding rules, etc.
•    Provide access to OneView that allows for easy tracking of filing activity in one repository

Contact anyone on our team today for assistance!

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Michigan issues order requiring additional automobile insurance refund filings by July 24, 2020.

Please see Order No. 2020-13-M for more details. 

The CO Annual Report of Forms applies to all insurers providing claims made coverage.  The filing is due every July 1^st. 

Please see C.R.S. 10-4-419 and Claims-Made Liability Form Certification Filing Checklist for more details. 

Pennsylvania has issued a bulletin regarding Education Requirements for Licensees that cannot be met due to COVID-19. The Bullentin also states that until further notice, temporary extentions for renewal deadlines will be given. 

Please see Bulletin 2020-06 for more details. 

Minnesota released a circular stating the Terrorism Risk Insurance Program Reauthorization Act of 2019 was extended through December 31, 2027. 

Please see WC Circular Letter 20-1760 for more details. 

Martin & Company can help your company stay in compliance, please contact us today.

Please see  FAC Rule 69O-189.003 for more details.
 
Martin & Company can help your company stay in compliance, please contact us today.
 

The Delaware Commissioner has approved Filing no. 1903 to go into effect on 12/1/2019. The DCRB states that "housekeeping revisions are intended to improve Manual language by making it clearer and less ambiguous. The revisions clarify existing classification procedures and update language defining certain classifications in order to align with verbiage used in other Manual provisions and/or to recognize ongoing technological or industrial changes. The revisions are intended to assist in the administration of the DCRB’s uniform classification plan and do not revise the scope of any classification nor impact any classification’s voluntary market loss cost or residual market rating value."                

Please see DCRB Circular No. 966 for more details.

The California Senate passed a bill that could force Uber and other gig economy giants to reclassify their workers as employees. Such a change would secure labor protections for thousands of people across the state and deal a significant blow to companies that built multi-billion dollar businesses on independent contractors.
 

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In accordance with Bulletin B-0006-19, Commercial and Personal Automobile Insurers that intend to pass on any of the fee to policyholders must submit a rate/rule filing that includes the manual page or fee schedule showing the revised name and amount of the fee. 

An Insurer that proposes the continued use of any form that lists the fee, must file an amended version changing the $2 fee to $4 or use brackets for a variable amount.  This includes Declarations pages, Endorsements, etc.  If an insurer wants to add the MVCPA fee to a different form, the form must be filed.

Martin & Company can help your company stay in compliance, please contact us today.

The State NY addresses Diaster Planning, Prepardness, and Response by the P&C Industry in Circular Letter No. 5 (2019). In this circular, detaled guidelines are laid out establishing proper procedures in case of diasters such as natural disasters, cyber attacks, terrorist attacks, and more. It also includes guidelines and checklists for insurers to follow pre and post disaster. 

Please refer to the NY site for more details regarding Circular Letter No. 5 (2019)

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In Administrative Letter 2019-01, the General Assembly passed House Bill 2186 and Senate Bill 1565 relating to the regulation of travel insurance. The legislation adds subsection D, “travel insurance,” to § 38.2-126 (marine classification of insurance) and amends Article 9 of Chapter 18 of Title 38.2 of the Code of Virginia (“Code”).

The legislation is effective for travel insurance purchased on or after July 1, 2019.

Martin & Company can help your company stay in compliance, please contact us today.

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In PCRB CIRCULAR NO. 1720, PA announced to it's a members that they have approved an overall rate decrease of -12.95%. This rate impact will be effective on a new and renewal basis as of 12:01 a.m., April 1, 2019.

Per the circular, "All approved loss costs, expected loss factors and other rating values are available in two Excel files in the “Rating Values” section of the PCRB’s website."

For more updates like the one above, please inquire about Bureau Monitor ADVISOR (BMA), M&C's web-based interactive solution for monitoring and taking action on Bureau Circulars.

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Recent new health insurance rules regarding short-term health plans are expected
to drive more people to purchase these plans, and it’s “estimated to reach 1.9 million by 2022.”
Martin & Company is actively monitoring this topic and will continue to follow state by state development closely.

Please see US Federal CMS Report 4/2018 for more details.
 

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Effective August 1, 2018, Florida has passed revisions relating to the Florida Hurricane Catastrophe Fund. FAC Rule 19-8.028(c) states 'A policy solely covering jewelry which is not associated with a policy covering a Residential Structure located in Florida and is not issued by an insurer that provides coverage of Residential Structures in Florida is deemed to be a situation of an unusual nature or where undue hardship may result, and providing an exemption from the Fund for such policies would be consistent with sound insurance practices."

Please see FAC Rule 19-8.028 for more details.

Action required by December 31, 2018

California Work Comp WCIRB Bulletin No. 2018-13 advises carriers that a filing will be required by 12/31/2018 and annually thereafter through 12/31/2020 to report the amount of the tax savings and impact on rates as a result of the Tax Jobs and Cuts Act of 2017.
Contact Info: Corporate and Regulatory Affairs, [email protected].
 
Martin & Company can help with actuarial support and the filing process, please contact us today.
 

Michigan passed multiple revisions to it's Cybersecurity laws in the following bills & statutes:
 

• House Bill 4973 - Exempt cybersecurity systems information from open records law
• Mich. Comp. Laws. § 15.232 - Definitions
• Mich. Comp. Laws. § 15.243 -  Exemptions from disclosure; public body as school district or public school academy; withholding of information required by law or in possession of executive office.

Please click on the links for more information.

The Pennsylvania Insurance Department is conducting its annual workers compensation Special Schedule "W" data call.  Authority for this data call can be found in Section 655 of the Insurance Company Law of 1921, P.L. 682, as amended, 40 P.S. § 815.

Click Here to see more information.


 

Section 730 of the California Insurance Code (CIC) authorizes the Insurance Commissioner to conduct examinations of insurance companies for financial solvency and compliance with California State law. The examination rate schedule has been prepared in compliance with the actual cost requirements set forth in CIC section 12992.

Please see the link to the California Notice released on Novemember 3, 2017.

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Section 5(b) of Senate Bill A1620 states that if a premium increase of 10% or more occurs the insurer must notify the insured within at least 30 days in advance of the expiration date of the policy. This act will go into effect 120 days after the passing of this bill.

Please refer to U.C.C. Law § 4-54 on the New York Consildated Laws Site for more information on this provision.

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Commissioner's Bulletin # B-0030-17 provides brief summaries of selected bills enacted by the 85th Legislature that affect the regulation of solvency and licensing that may be relevant to individuals and entities regulated by the Texas Department of Insurance (TDI).
Bills listed in this Bulletin include:

• HB 2437 - Confidentiality of reports and related information for a solvency examination of an insurance carrier
• HB 2492 - Domestic surplus lines insurers
• HB 3220 - Regulation of insurance holding company systems
• SB 1070 - Authorized reinsurance and financial statement credit and accounting for reinsurance
• SB 1073  - Registration statement and reporting requirements of insurers in an insurance holding company system

For more information contact: [email protected]

OIR-17-02M – 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.

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 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.
 

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.   

Senate Bill 1070; 493.002+

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

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 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 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.


 

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.

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.
 

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.
 

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.
 

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.