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Responding to a request from Larris Larsen, AAIS
assistant vice president for compliance, the Kentucky Office of
Insurance (KOI) has reversed an earlier position that would have
required duplicate filing of commercial lines forms.
Earlier this year, AAIS learned that the KOI had
taken the position that "commercial multiple line" constituted a
separate line of insurance and that, therefore, all monoline forms and
rating materials used in commercial package policies had to be filed
twice, once for use in monoline policies and again for use in packages.
In a letter to the department, Larsen stated that
Kentucky was taking a position distinct from that of other states and
the National Association of Insurance Commissioners (NAIC), and that the
new requirement created an unnecessary administrative and financial
burden.
In an e-mail to Larsen this week, the KOI stated
that it would be reverting to its previous position, wherein monoline
materials already approved would not have to be filed again for use in a
package.
A new Kansas
law eliminates the requirement that
property/casualty forms receive" prior approval" before being
used. Effective July 1, 2006, the statute allows carriers to begin using
new commercial lines forms upon the day of filing; new
personal lines forms can be used 30 days after they are filed.
The new law also creates a subjective rate plan for
commercial lines policies. That plan allows an insurer to increase or
decrease the premium for a particular risk by up to 40% without having
to document the reason for the change.
With the creation of the new subjective rating plan,
AAIS will be withdrawing its individual risk premium modification (IRPM) plans from
Kansas. The Kansas Department of Insurance has advised AAIS that the
state's new plan cannot be used in conjunction with any other individual
risk rating plan.
Beginning July 1, 2006, all companies may
discontinue using the AAIS individual risk modification plans and begin
using the Kansas statutory subjective rating plan.
A recent
bulletin from the Mississippi Insurance Department establishes a new
requirement that property/casualty policies state that policyholders
have up to three years to take legal action against an insurer over a
claim dispute.
The three-year statute of limitations has been in
place for a number of years, but the department has not required
policies to be amended to comply with the law, until now.
AAIS has filed amendatory endorsements that reflect
the new directive for its Homeowners and Mobile-Homeowners programs, and
will file similar endorsements in other programs in coming months.
Louisiana Gov. Kathleen Blanco has signed a bill
requiring homeowners insurers in the state to display a prominent notice
on homeowners policies notifying insureds of their option to increase
the deductible and potentially lower the amount paid for coverage.
The law directs the Louisiana insurance commissioner
to develop a form for the notice. AAIS will notify affiliates of action
required once that has been done.
To date, more than 100 companies have accessed the
"RiskMeter.com" risk mapping service or the "Residential" property
valuation service available through AAISdirect during the latest
trial period. Access to the two services is being offered free of charge
during the trial period to all insurers that use the AAISdirect Internet
service, no matter which AAIS programs they use.
RiskMeter,
a service of CDS Business Mapping, Boston, Mass., provides instantaneous
access to more than 30 categories of geographic information related to
hazards at a location. The information provided specifies a location's
distance from coastlines, fault lines, and flood zones, as well as its
exposure to hail, tornadoes, wildfires, crime, and other hazards.
The
Residential
valuation service, developed by e2Value, Inc., Stamford, Conn., provides
systematic valuation procedures for a wide range of residential
property, including high value homes, modular and kit homes, condos and
co-ops, alterations and additions, and more.
Companies using AAISdirect have the option of
offering their agents access to the Residential valuation service.
Instructions for providing agent access were sent to all AAISdirect
users by e-mail last week. For questions about providing agent access,
contact Pat Peters, director of member relations, at
patp@AAISonline.com.
For information on getting a license for use of
AAISdirect, contact Joyce Tignino,
vice president of marketing and industry relations, at
joycet@AAISonline.com.
AAIS has filed endorsements for providing underinsured
motorists (UIM) coverage under its umbrella programs in Wisconsin, to
meet a requirement described in the May 17
AAIS Advisory.
The endorsements, filed under the Farm Umbrella,
Personal Umbrella, and Commercial Umbrella/Excess Liability programs,
have been approved with an advisory effective date of July 1, 2006.
In addition to the endorsements, AAIS has developed
notices companies can use to advise insureds that they can purchase UIM
coverage. The notices have been submitted to the Wisconsin Department of
Insurance on an informational basis.
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