Regulatory Roundup: NIPR Service Expands, Compliance Matters, States Collab for NAIC Climate Report

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 as, instead, 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. 

NIPR service expansion in Washington and New York

We’re a tad biased, but we love to see the National Insurance Producer Registry (NIPR) expand its offerings really any time. As the central data spot for the entire industry, when NIPR wins, we all win!

The newest expansion of NIPR service is in Washington and New York, which both will now process resident and nonresident business entity licenses and renewals via NIPR. 

As a news release from NIPR notes, “This expansion marks a significant milestone, as NIPR now provides licensing services for major lines in all 50 states and four U.S. territories.”

For agencies that work across the U.S., these additions will make maintaining data and compliance easier. This data will also now be reflected in the compliance ecosystems of everyone who uses AgentSync.

“The collaboration between NIPR and both New York and Washington emphasizes our strong, trust-based relationships with regulators allowing us to better serve the insurance industry together,” said NIPR CEO Karen Stakem Hornig in the news release. “Insurance professionals can now fully leverage NIPR for business entity licensing and renewals in all states.”

State administrative actions remind us: compliance matters 

Some states are quite transparent about their administrative actions when it comes to the producers and agencies that violate insurance department rules and state laws. While many months the lists are fairly banal and full of licenses that are stripped for failure to file taxes, sometimes there are some eyebrow-raisers.

For instance, Michigan took action against an agent who, while accused of other things, ultimately admitted to having written business without being properly appointed. 

Another Michigan action concerned a nonresident agent who failed to disclose to the Michigan Department of Insurance and Financial Services (DIFS) that he’d been convicted of negligent homicide in Maricopa County, Arizona. Granted, there’s a good chance he had things on his mind other than his insurance license compliance.

If you ever find yourself in a similar position of needing to report criminal charges or convictions to your resident or nonresident state, refer to our comprehensive guide on reporting administrative actions. 

Wisconsin’s March list of administrative actions was also full of revocations and fines against companies and individuals who failed to disclose administrative actions against them in other states.

As a reminder, the states talk! If you find yourself on the wrong end of any state’s criminal or administrative processes, disclose it quick, because in a digitally connected world, the other states will find out.

NAIC Climate Resilience Strategy for Insurance

The National Association of Insurance Commissioners (NAIC) recently adopted the first National Climate Resilience Strategy for Insurance. The Climate and Resiliency Task Force, formed by commissioners from across America, wrote the strategy, which was recently adopted, according to a news release from the Connecticut Insurance Department.

The CID news release offered perspective and commentary from state Commissioner and NAIC President Andrew Mais. 

“Closing the protection gap and ensuring insurance availability and reliability are paramount in the face of climate risks”, said Commissioner Andrew N. Mais. “The National Climate Resilience Strategy provides a crucial blueprint for state insurance regulators to strengthen communities and enhance resilience.”

Connecticut is also one of the states that’s adopted the NAIC’s Climate Disclosure Survey, which all insurance carriers in the state must submit each year.

The Resilience Strategy outlines areas the commissioners aim to improve on, like data gathering and analysis, policyholder prep, and developing tests to assess resilience before disasters happen. While the document serves as an insight into legislative and regulatory priorities, it may also be beneficial for insurance carriers looking to stay ahead of government expectations.

Other state regulatory changes

Colorado has adopted a new bulletin on reimbursement rates for hospitals and providers. The aim is for new reimbursement rates to support the premium rate reduction goals the state is imparting for the Colorado Option Standardized plans.

Georgia has proposed revisions to its rules governing continuing education. The new provisions will end half credits for certain classes and will clarify the requirements for online courses.

Louisiana Commissioner Tim Temple issued a statement about another large insurer’s exit from the California marketplace and what it means to him as the commissioner of a state with a difficult property insurance market.

Maryland issued a bulletin April 1, 2024, that was no joke, harmonizing the Maryland Insurance Administration rules to legislation passed in 2022. The bulletin clarifies mandatory reporting for title agencies, title insurers, and title insurance producers who suspect malfeasance from their partners.

Michigan has issued a bulletin with new minimums for the three-year claims payment history for home insurance underwriting. The CPI-adjusted numbers were effective as of Jan. 1, 2024. 

New Hampshire adopted new annuity requirements effective in February 2024. The state joins many, many others in adopting the NAIC’s Suitability in Annuity Transactions model law.

Ohio announced its appointment renewal cycle. Carriers should terminate producers they don’t want to renew by June 30, 2024. Appointment invoices will be open beginning in August 2024.

Oklahoma Insurance Commissioner Glen Mulready issued a bulletin to alert property and casualty producers that a new law allows teens age 14 to 17 to apply for a farm permit authorizing them to operate Class D motor vehicles. The commissioner’s bulletin reminded insurance carriers and producers that, while teens may apply for permits and coverage, carriers aren’t currently required to offer coverage for teens operating this equipment on farms.

Washington Office of the Insurance Commissioner is trying to improve its website and is offering $125 to people who qualify (see if that’s you!) to join their 90-minute usability study.

Wyoming has issued its legislative wrap-up, with several insurance-relevant laws, from prior authorization regulations to health insurer’s reimbursements of overpayments, protections for organ transplant recipients, pharmacy claims, annuity regulations, standards for customer data protection, and others. Get the scoop with Commissioner Jeffrey Rude’s write-up on the state website.

SILA announced the Securities and Insurance Licensing Administration’s newest SILA-A designees: Amy Green, Lockton Companies; Natalie Ingle, American Specialty Insurance & Risk Services; Kim Nelson, Permanent General Assurance Corporation; Colleen Pulkowski, Integrity Mar. Congratulations!

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.