This post is part of a series sponsored by AgentSync.
The various state-by-state laws, compliance regulations, industry transparency, and general regulatory culture can give one the impression that keeping up with industry changes is like herding cats. So, what better way to debunk some of the local insurance issues than the Regulatory Roundup?
On an ongoing basis, in no particular order or degree, we are dealing with various changes in laws, compliance actions, and commission decisions in our organization. As a disclaimer: There is a lot going on at any given time here in the United States, so this is not a complete picture of state-level action by any means. Think of it, instead, as a sampler platter of regulation.
Another important thing to note: When we repeat the definitions of the legal decisions, these are the assumptions of a certain insurance policy and are not legal advice at all. If you the need legal advice, get a lawyer.
4 Los Angeles citizens, 3 cars, and… a bear?
No, it’s not about making a bad joke, but about insurance fraud, this is is something very funny. According to a news report dated Nov. 13, 2024 from the California Department of Insurance, four LA residents were arrested after allegedly carrying out an insurance fraud scheme that they aptly named “Operation Bear Claw”. The story goes like this:
On January 28, 2024, Ruben Tamrazian, Ararati Chirkinian, Vahe Muradkhanyan, and Alifiya Zuckerman reported that a bear entered their 2010 Rolls Royce near Lake Arrowhead, CA, and caused damage. inside the car. The men were lucky enough to capture a video of the proposed attack, which they provided when they said they wanted. However, when he watched the video, the insurer found something shocking.
It seems that the hitman in question was not a bear, but a person in a bear costume. After their initial discovery, the insurance company referred the case to the Department of Insurance, which then received two more similar claims the suspects had filed with other insurance companies involving two different vehicles, each with video evidence attached.
To further confirm their suspicions, investigators brought in a biologist from the California Department of Fish and Wildlife to review the three videos. A biologist has approved all three videos showing what it was like to be a person in a bear suit breaking into and damaging cars. And if that wasn’t proof enough, the last part of the puzzle confirmed it. After searching the suspect’s home, detectives found the bear costume in question. Talk about a furry (or should we say furry?)
The San Bernardino County District Attorney’s Office is currently prosecuting this case, and we feel that the defendants will not receive the $141,839 in auto damages they tried to defraud their insurance companies from. But regardless of the outcome of the case, it seems that these fraudsters will have to hold their breath.
Oh deer! Missouri is reminding drivers to be aware of wildlife
The Missouri Department of Commerce and Insurance (DCI) has sent out a reminder to drivers to be aware of an increase in deer on roadways during the coming winter months.
In 2023, the state recorded more than 3,500 vehicle accidents involving deer, resulting in 420 injuries and four deaths. Missouri DCI Director Chlora Lindley-Myers reminds drivers in the state that “dawn and dusk are the most vulnerable times to spot deer” and to “stay alert and check both sides of the road.” But unfortunately, no matter how safe the driver is, some accidents are unavoidable.
And for the insured, if hitting Bambi wasn’t traumatic enough, if your auto policy only covers collision or liability coverage, you may be out of luck trying to get your carrier to cover the damage. Generally, you will need comprehensive car insurance to cover any injury or damage caused to your car by hitting an animal. So, as Lindley-Myers says “it’s always best to be prepared by contacting your agent or carrier to discuss the right insurance.” Stay safe out there, drivers! Especially as the days get darker and longer.
Does your homeowners policy cover a flaming turkey?
If you’re going to be spending extra time in the kitchen this holiday season cooking turkey, tofurkey, or whatever else floats your boat, now might be a good time to review your homeowners insurance. The state of Maryland sent out a newsletter reminding its residents to consider the additional risks associated with this time of year and make sure they have the proper levels of coverage in case their party catches fire.
Aside from spending more time in the kitchen, the Maryland newsletter highlighted several other risks that insurance may cover, including increased travel and holiday shopping protection. So whether you’re packing the kids for a flight to grandma’s or escaping the winter cold for a sunny beach vacation, you might want to consider protecting your trip with a travel insurance policy. And if you plan to give gifts liberally this year, talk to your agent about whether porch theft is covered on your homeowners or renters insurance policy.
For insurance producers, now is a good time to communicate with your customers about this coverage and provide them with resources and recommendations to stay safe and protect themselves and the things that are most important to them during the holiday season.
Other state regulatory changes
California Insurance Commissioner Ricardo Lara announced immediate action aimed at helping protect communities affected by the Mountain Fire in Ventura County. Once the fire boundary has been determined, Lara will issue a Bulletin protecting homeowners in certain areas from policy non-renewal or cancellation due to wildfire risk. These protections, which will last for one year, are part of Lara’s efforts to address California’s insurance crisis through the Sustainable Insurance Strategy.
In Colorado is now accepting applications for its FAIR Plan board. The board, made up of 9 members, is in its final stages of implementing the FAIR Plan in the province. Currently, the only opening for a Producer seat, which expires on Jan. 1, 2025, but the state encourages people to apply for all positions to maintain a diverse and qualified pool going forward. Interested persons can apply using this form.
Delaware reduced its non-residential license appointment fee from $50 to $25 effective Nov. 1, 2024. Good!
In Florida announced that from Nov. 18, 2024, all Surplus Lines Information Portal (SLIP) users will be redirected to SLIP+. Users can use their existing SLIP credentials to log into the new system. You can find more information about the SLIP+ update here.
Georgia raised its retaliation fee from $16 to $20 as of Nov. 18, 2024.
Kansas revised its filing fees for resident agents, non-resident agents, and public adjusters effective Jan. 1. 2025. The new fees are as follows:
- Local agent: $15
- Non-local agent: $50
- Public modifier: $100
Massachusetts will begin certifying non-resident Public Adjuster and Counselor applicants’ examinations from Dec. 13, 2024. Applicants who have not passed their exams will not be able to apply electronically.
New Hampshire announced significant changes to the regulation of consumer warranty contracts aimed at increasing the protection of individuals who purchase service contracts related to homes, automobiles, and other products. The changes, which will take effect on Jan. 1, 2025, were motivated primarily by increasing consumer complaints about the lack of clarity and consistency in how service contracts are regulated in government. We love to see these kinds of positive, consumer-led changes!
In Oklahoma issued a report reminding insurers that any decisions or actions affecting consumers made or supported by AI must comply with all applicable insurance laws and regulations, including those dealing with unfair trade practices and discrimination. The report sets out the Department’s expectations about how insurance companies will handle the use of certain AI technologies and advises policyholders on the type of data and documents the Department may request in the event of an investigation involving the use of AI.
in Pennsylvania removes their requirement for pre-licensing education credits for resident licensees. The state also added behavioral and flood rehabilitation requirements. Beginning April 29, 2025, all state licensed producers will need at least three of their 24 CE credits to cover ethics and at least two to cover flood insurance.
Vermont use new transaction types to process designated licensed producers (DRLPs). As of Nov. 15, 2024, transaction code type 17 will represent DRLP. You can get a refresher on DRLP responsibilities and best practices, here.
Stay on top of regulatory changes with AgentSync
While these points of interest are not exhaustive, our knowledge of the insurance producer and dealer license of flexible lines and the maintenance of legal compliance. See how AgentSync can help you look smarter today; head over to the Compliance Library and tackle state-by-state regulations and additional legal updates. If you’re looking for a solution that builds rules like this into your distribution channel management workflow automatically, AgentSync can help. See us in action or speak with one of our experts today.
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