This post is part of a series sponsored by AgentSync.
State-by-state variations in laws, compliance protocols, industry transparency and general regulatory culture can give the impression that keeping up with industry changes is a bit like herding cats. So what better way to wrangle some of the more local insurance news than in a Regulatory Roundup?
Ongoing, in no particular order or rank, we’re cramming the various legislative changes, compliance actions and commissioner decisions into our roundup. As a disclaimer: There is a lot going on at any given time in these here United States of America, so this is by no means a comprehensive picture of state-level action. Think of it instead as a sampling plate of regulation.
Also important to note: if we summarize interpretations of legal decisions, this is some armchair insurance speculation and not legal advice at all. If you need legal advice, get a lawyer.
4 Los Angeles area residents, 3 cars and a… bear?
No, this isn’t the prelude to a terrible joke, but as far as insurance fraud goes, this one is is quite funny. According to a November 13, 2024 news release from the California Department of Insurance, four LA residents were arrested after allegedly perpetrating an insurance fraud scheme that officials have aptly dubbed “Operation Bear Claw.” The story goes like this:
On January 28, 2024, Ruben Tamrazian, Ararat Chirkinian, Vahe Muradkhanyan, and Alifiya Zuckerman reported that a bear entered their 2010 Rolls Royce near Lake Arrowhead, CA, causing interior damage to the vehicle. The men were lucky enough to record a video of the proposed attack, which they provided in their claim. But upon viewing the footage, the insurance company made a shocking discovery.
It appeared that the car attacker in question was not a bear, but rather a human wearing a bear costume. After their initial discovery, the insurance company turned the case over to the Department of Insurance, which then uncovered two more identical claims the suspects had filed with other insurance companies involving two different vehicles, each with accompanying video evidence.
To further confirm their suspicions, detectives brought in a biologist from the California Department of Fish and Wildlife to review the three videos. The biologist agreed that all three videos showed what was clearly a human in a bear suit entering and damaging the vehicles. And if that wasn’t proof enough, one last piece of the puzzle confirmed it. After searching the suspects’ home, the detectives actually found the bear costume in question. Talk about a hairy (or should we say furry?) situation.
The San Bernardino County District Attorney’s Office is currently prosecuting the case and we have a feeling the suspects will not receive the $141,839 in car damage they tried to defraud their insurance companies out of. But regardless of the outcome of the case, it looks like these scammers will just have to grin and bear it.
Oh deer! Missouri reminds motorists to watch out for wildlife
The Missouri Department of Commerce and Insurance (DCI) sent out a reminder to drivers to be aware of the increased movement of deer along roadways in the coming winter months.
In 2023, the state recorded over 3,500 car crashes involving deer, resulting in 420 injuries and four fatalities. Missouri DCI Director Chlora Lindley-Myers reminds drivers in the state that “dawn and dusk are the most susceptible times to experience deer collisions” and to “always use caution and regularly scan both sides of the roadway.” But unfortunately, no matter how safe a driver is, some accidents are simply unavoidable.
And for insureds, in case hitting Bambi wasn’t already traumatizing enough, if your auto policy only includes collision or liability coverage, you may be out of luck trying to get your carrier to cover the damage. Generally, you need comprehensive car insurance to cover any damage or injury caused to your vehicle by hitting an animal. So as Lindley-Myers says “it’s always best to be prepared by contacting your agent or carrier to discuss appropriate insurance coverage.” Stay safe out there, drivers! Especially when the days get darker for longer.
Does your homeowner’s policy cover a burning turkey?
If you’re going to spend a little extra time in the kitchen this holiday season cooking up a turkey, a tofurkey, or whatever floats your boat, now might be a good time to review your homeowner’s insurance. The state of Maryland issued a newsletter reminding its residents to consider the extra risks associated with this time of year and to ensure they have the right levels of coverage in place if their party goes up in flames.
In addition to spending extra time in the kitchen, Maryland’s newsletter highlighted a few other risks that could be covered by insurance, including increased travel and securing holiday purchases. So whether you’re packing up the kids for a flight to Grandma’s or escaping the winter chill with a sunny beach holiday, consider protecting your trip with travel insurance. And if you plan to give gifts generously this year, talk to your agent about whether porch piracy is covered by your homeowner’s or renter’s insurance.
For insurance producers, now is a great time to reach out to your customers about these coverages and provide them with resources and recommendations to stay safe and protect themselves and the things that matter most to them this holiday season.
Other governmental regulatory changes
California Insurance Commissioner Recardo Lara announced impending action aimed at helping protect communities affected by the Ventura County wildfire. Once the perimeter of the fire is determined, Lara will issue a bulletin protecting homeowners in certain areas from non-renewal or cancellation due to wildfire risk. The protections, which will last for a year, are part of Lara’s leading efforts to tackle California’s insurance crisis through his Sustainable Insurance Strategy.
Colorado is now accepting applications for its FAIR Plan Board. The board, which consists of 9 members, is in its final phase of implementing the FAIR plan in the state. Currently, the only opening is for the producer seat, which expires on January 1, 2025, but the state encourages individuals to apply for all positions to maintain a diverse and qualified pool of candidates going forward. Interested persons can apply using this form.
Delaware reduced its non-resident license appointment fees from $50 to $25 effective November 1, 2024. Nice!
Florida announced that from 18 November 2024 all users of the Surplus Lines Information Portal (SLIP) 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 effective November 18, 2024.
Kansas updated its application fees for resident agents, non-resident agents and public adjusters effective January 1, 2025. The new fees are as follows:
- Resident agent: $15
- Foreign agent: $50
- Public adjustment: $100
Massachusetts will begin validating exams for non-resident Public Adjuster and Adviser applicants effective December 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 expanding protections for individuals who purchase service contracts related to homes, vehicles and other products. The changes, which take effect Jan. 1, 2025, were largely driven by an increase in consumer complaints about the lack of clarity and consistency in how service contracts are regulated in the state. We love to see this kind of positive, consumer driven change!
Oklahoma issued a bulletin reminding insurers that any decision or action 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 bulletin sets out the ministry’s expectations for how insurers will manage the use of certain AI technologies and advises insurers on the type of data and documentation the ministry may request in the event of an investigation involving the use of AI.
Pennsylvania removes their requirement for pre-license education credits for resident licensees. The state is also adding ethics and flood requirements to renewal. Beginning April 29, 2025, all licensed manufacturers in the state must have at least three of their 24 CE credits cover ethics and at least two cover flood insurance.
Vermont implemented new transaction types to process Designated Responsible Licensed Producers (DRLPs). Effective November 15, 2024, transaction type code 17 will represent DRLP. You can find a refresher on DRLP responsibilities and best practices here.
Keep track of regulatory changes with AgentSync
Although these points of interest are not exhaustive, our knowledge of insurance producers and broker licenses with variable lines and compliance maintenance. See how AgentSync can help make you look smarter today; head over to the Compliance directory and find some state-by-state regulations and more jurisdictional updates. If you’re looking for a solution that automatically builds rules like these into your distribution channel management workflows, AgentSync can help. See us in action or speak to one of our experts today.
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