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Zoning In - Fall 2023



Northeast Zone

Delaware

District of Columbia

New Hampshire

The Department of Insurance Bulletin Docket No: INS 23-035-AB, dated Oct. 12, 2023, addresses “Recent Amendments to RSA 404-G and Required Changes to the New Hampshire Health Plan’s Process for the Collection of Assessments.” Effective Jan. 1, 2024, the RSA 404-G amendments under HB 613 (2023) update the statute by removing all outdated language relating to the high-risk pool, including unnecessary definitions. The purpose of this bulletin is to provide guidance to assessable entities regarding the new procedures for submitting reports of covered lives to the New Hampshire Health Plan (NHHP) which will be effective for calendar year 2024. At present, the NHHP is not changing the reporting requirements and expects health carriers and excess loss insurers to continue to submit reports and assessments in the same manner in which they have been traditionally submitted. Additionally, the Department is also requiring all TPAs and insurers acting under an administrative services - only arrangement that are administering coverage for persons who qualify as a “covered life” under RSA 404-G, and entities providing group excess loss insurance to submit quarterly reports for calendar year 2024 regardless of whether they are the party responsible for paying the assessments to the NHHP. Information on report submissions, required template and quarterly assessment filing deadlines are also provided in this Bulletin.

Southeast Zone

Arkansas

SB 368, effective Aug. 1, 2023, establishes a new disclosure requirement applicable to deductibles based on a percentage of insured value. The specific requirement is as follows: “A residential property insurance policy issued or renewed in this state that bases the deductible under the insurance policy for any loss, other than a loss due to an earthquake, on a percentage of the insured value of the insured property shall disclose to the insured the monetary amount of the deductible, other than for a loss due to an earthquake, on the policy declaration page or notice of renewal of the policy.”

Georgia

Kentucky

HB 4786 created a new article in the insurance code cited as the “Delivery Network Company Insurance Act.” Specific operational definitions are included as well as the article’s interaction with other federal or state laws, insurance requirements, disclosures to delivery network drivers, and exclusions in motor vehicle liability insurance policies. Among the specific insurance requirements is a section on policy minimum limits: “During the delivery service period and delivery available period, the delivery network driver, delivery network company, or any combination of the two shall maintain insurance that insures the driver for liability to third parties of not less than $50,000 for damages arising out of bodily injury sustained by any one person in an accident, of not less than $100,000 for damages arising out of bodily injury sustained by all persons injured in an accident, and of not less than $25,000 for all damages arising out of damage to or destruction of property in an accident: Provided, that no provision in this article relieves the DNC and driver from the requirements of §17A-1-1 et seq. and §17D-1-1 et seq. of this code and from the uninsured motorists’ coverage requirements of §33-6-31 of this code.”


Regarding exclusions in motor vehicle liability insurance policies, HB 4786 specifically provides that an authorized insurer that writes motor vehicle liability insurance may exclude any and all coverage and the duty to defend or indemnify for any injury or loss that occurs during the delivery available period and the delivery service period, including, but not limited to: (1) Liability coverage for bodily injury and property damage; (2) Uninsured and underinsured motorist coverage pursuant to §33-6-31 of this code; (3) Medical payments coverage; (4) Comprehensive physical damage coverage; and (5) Collision physical damage coverage. Additional provisions on exclusions are also included.

Midwest Zone

Illinois

Western Zone

California

Colorado

Montana

Oregon


 

Kathy Donovan is Senior Compliance Counsel, insurance with Wolters Kluwer Financial Services. Kathy has more than two decades of experience in insurance compliance. Her expert commentary on legal and regulatory issues affecting the insurance industry is widely published and she is a regular presenter at various industry events.

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