Regulatory Roundup: Storm Season, Moving Resident States, Tesla Vandalism

State-by-state variations of laws, compliance protocols, industry transparency, and general regulatory culture can lend one the impression that keeping up with industry changes is a little bit like herding cats. So, what better way to wrangle some of the more localized insurance news than in a Regulatory Roundup?

On an ongoing basis, in no particular order or rank, we’re wrestling the various regulatory changes, compliance actions, and commissioner decisions into our roundup. As a disclaimer: There’s a lot going on at any given time in these here United States, so this isn’t a comprehensive picture of state-level action by any means. Think of it, instead, as a sampler platter of regulation. 

Also important to note: If we’re recapping interpretations of legal decisions, this is some armchair insurance speculation and not at all legal advice. If you need legal advice, get a lawyer. 

Rain rain go away … but it won’t because it’s storm season 

March got us started with storm season, when a series of windstorms mid-month spun out tornadoes that pounded a whole swath through the middle of the country.

• Oklahoma Insurance Department officials used the opportunity to remind state residents of the processes and procedures for reporting their damages and filing claims.
• Kentucky also issued a notice allowing temporary adjusters to get started in storm-impacted counties. 
• Michigan announced the importance of preparedness, giving consumers a list of things to put on their radar—pun intended—before their property, livelihoods, or physical safety is in danger.
• Alabama used the seasonal opportunity to remind people how to file claims, but also to remind them that they should check any contractor’s license against the state database so they don’t become a victim of a fraud.

If you’re in a P&C business—insurers, agencies, and everything in between—make sure you’re ready to mobilize your adjuster force in case of emergency or claims surges.

Changing resident states — still hard

Periodically, the industry collectively wrings its hands about the difficulties for producers who change their resident states.

A Michigan case illustrates that resident state swaps are frustrating for everyone. In this case, the state of Michigan tried to contact a producer with a Florida resident license about their nonresident Michigan license. The producer’s address and contact information was based in Michigan, and the producer said he currently lived in Michigan. The state informed him he needed to close down his Florida resident license and become licensed as a resident in Michigan. The state gave him instructions for how to make the switch, but, after failing to do so, the state revoked his license and has fined him $1,000. No doubt this action will also be reported to Florida.

Moving is already a real bear, and the considerations of having to report an address change (within 30 days in Michigan) and then do a whole license change (90 days) is one more set of complicated steps on an already frustrating list. Check out our article with suggestions for best practices for approaching a resident state change.

Political backlash, vandalism could increase insurance rates for Tesla owners

Tesla CEO Elon Musk’s political actions at the Department of Government Efficiency and his ties to President Donald Trump have had consequences for people who own Tesla’s vehicles.

From vandalism on individual Tesla vehicles to makeshift firebombing of entire dealership lots, angry protesters have taken their angst at Musk out on the electric vehicles (EVs) bearing his logo. While authorities vow to make an example of the vandals, one knock-on effect is that insurance premiums for Teslas—already higher than other EVs— may surge as carriers readjust statewide rates for specific makes and models.

Florida’s current Chief Financial Officer and newly elected U.S. Representative Jimmy Patronis made it a hallmark of his years as CFO to alert the public to the numerous dangers of EVs. Patronis’s concerns centered the fact that saltwater makes the lithium ion batteries prone to sudden, intense flame that poses a danger to drivers, passengers, bystanders, and first responders.

Now, Patronis is warning rioters and malcontents against damaging Teslas. 

“This week, I warned Tesla owners and first responders about the heightened dangers of electric vehicle (EV) fires, in light of recent targeted arson attacks on Tesla vehicles and dealerships. I want to be clear — if you commit arson in Florida, you will be caught, and you will be thrown in jail. Our state has zero tolerance for this reckless, violent activity that we’ve seen at Tesla dealerships around the country and targeting Tesla owners on the streets. If you do this in Florida, we will throw the book at you, and you could face up to 30 years in prison.”  

Other state regulatory changes

Alabama announced Nicole Boswell is the new Accounting Director for the Department of Insurance. Nicole was previously the Accounting Manager of Financial Operations and Assistant Financial Officer for the department. Congrats, Nicole!

Arkansas will soon allow producers to process individual primary name changes via NIPR.

Colorado has adopted a bulletin clarifying health insurance carrier obligations under HB23-1136, a state law that requires insurer coverage for prosthesis that allow people to engage in recreational athletic activities. There’s some debate about whether the state must defray the cost of coverage—the state says no, carriers say yes, and the U.S. Department of Health and Human Services says 🤷.

Connecticut has moved to a new license renewal cycle for claims adjusters and motor vehicle physical damage (MVPD) appraisers. The state issued a fun FAQ sheet about new deadlines and processes. For everyone renewing after Oct. 1, 2024, that deadline will be two years after the last day of your birth month, starting with your birth month that came before the Oct. 1, 2024 reset. … For AgentSync users, it’s whenever the data feed says it is. 

Delaware announced the National Association of Insurance Commissioners (NAIC) renewed the Department of Insurance’s accreditation after a thorough review. We do love to see those passing grades.

Florida premiums are still on the increase, but they’re climbing at a markedly slower pace than previous years. Yet the tort reforms state regulators credit with dampening social inflation for reinsurers and carriers are in jeopardy as constituents say their legal rights have been curtailed. Florida, man. Florida CFO Jimmy Patronis also won in a special election the House of Representatives seat that previously belonged to ex-Rep. Matt Gaetz.

Iowa will process DRLP changes via NIPR. 🌈

Kansas legislators voted to eliminate fees for producer appointments, and to allow the Kansas Insurance Commissioner discretion to lower (but not raise!) fees for more than 100 other items below their statutory-set rates. Another bill will create a database to verify auto insurance coverage in real time by requiring car insurance carriers to report their insureds to the state. Commissioner Vicki Schmidt also issued a statement calling for the federal government to disband the Federal Insurance Office. It’s been an eventful legislative session for the Wheat State. 

Louisiana can now process primary name changes via NIPR for people whose names are on their business entity license.

Michigan is revoking a license for a producer who was dually licensed for insurance and with FINRA. In 2023, FINRA requested additional information from him in regard to his FINRA license and he ghosted them, so they suspended him and then permanently barred him from using his securities license. Michigan’s Department of Insurance and Financial Services (DIFS) then reached out to him for failing to report that FINRA had taken action against him. He also ghosted DIFS. So, to clarify: You can ghost randos online. You might even be able to ghost your mom. But if you ghost securities and insurance agencies, there are consequences.

Montana Insurance Commissioner James Brown announced the DOI will be at the Investing in Montana event in Bozeman, Montana, June 12, 2025.

New Mexico now processes DRLP changes via NIPR. 🧑‍🍳

Oklahoma Commissioner Glen Mulready issued a reminder to Congress and consumers that, if Congress fails to extend certain tax subsidies, those who buy health insurance through the Affordable Care Act federal health exchange could see massive increases in premiums. The state also expanded its pilot for home-strengthening grants to two new ZIP codes.

Ohio will allow business entities (aka agencies) to update contacts via NIPR.

Pennsylvania Surplus Lines Association staff reiterated a bulletin that requires producers to use the newer affidavit to swear that they have made a diligent search for admitted coverage before selling consumers a nonadmitted policy. The new affidavit is in effect as of December 2024—the state will no longer accept older versions (there are fewer fields to fill out on the new one, yay!).

Virgin Islands will join the states that allow primary name changes via NIPR.

Washington Office of the Insurance Commissioner staff spent a day at the capitol to record the OIC Answers podcast with Sen. Bob Hasegawa about a bill that’d let the OIC study how insurance carriers use credit histories to inform their underwriting.

West Virginia announced the state’s appointment renewal season. Terminations must be made by May 31, 2025, and companies’ appointment renewal invoices will be open at NIPR from June 6 to Aug. 31, 2025. 

Stay on top of regulatory changes with AgentSync

While these points of interest aren’t comprehensive, our knowledge of insurance producer and variable lines broker license and compliance maintenance is. See how AgentSync can help make you look smarter today; head over to the Compliance Library and wrastle up some state-by-state regulation and more jurisdictional updates. If you’re looking for a solution that builds regulations like these into your distribution channel management workflows automatically, AgentSync can help. See us in action or talk to one of our experts today.