Regulatory Updates

Effective August 4, 2024, South Carolina’s Governor Henry McMaster declared a state of emergency due to Hurricane Debby. For the next 120 days, nonresident adjusters or motor vehicle physical damage appraisers will be permitted to enter the state to handle adjustments without being required to be licensed in South Carolina. Please see the attachment for more information.

Effective June 17, 2024, Michigan updated rules surrounding charging a responsible fee to cover unique expenses to surplus lines. Please see the attachment for more information

On August 2, 2024, Washington proposed a rule change for producer and adjuster licensing requirements. Please see the attachment for more information. - Simplify the licensing process for limited-line credit insurance by automatically including it for producers already licensed for life, disability, property or casualty insurance - Allow insurance agencies to designate a new responsible licensed producer (DRLP) during license renewal if the current DRLP is inactive, fixing an issue identified by NIPR. - Simplify the fee structure for the cancellation of producer licenses. This will simplify fee calculations and prevent delays in implementing new NIPR features. - Remove outdated language that exempted crop adjusters from continuing education (CE) requirements, aligning with a 2022 rule that mandated CE for all licensed resident adjusters. - Remove references to pre-licensing education (PLE) to follow a 2023 law that abolished the PLE requirement. - Remove references to specific dates for electronic submissions, as all licensing processes are now fully electronic.

Update: The rule takes effect on November 4, 2024. Attached final copy of the changes.

Maine will begin using CE Home State Approval letters. This shows if the course is approved after review by the Maine Bureau of Insurance Continuing Education Advisory Committee. Please see the attachment for more information.

On August 1, 2024, Pennsylvania announced a change to their surplus lines reporting requirements which will be effective September 6, 2024.  

Effective January 1, 2025, California revised information related to variable life-specific training requirements: - This bill would require a life agent, licensed on or after January 1, 2024, who engages in the sale of specified life insurance policies on or after January 1, 2025, to complete specified hours of life insurance training courses before soliciting consumers to sell these life insurance policies.  - The bill would require any life agent, who engages in the sale of variable life insurance policies, to complete specified hours of training before renewing their license. The bill would apply these training provisions to licenses that are issued or renewed on or after January 1, 2025. Please see the attachment for more information

On July 30, 2024, the Louisiana Department of Insurance issued a news release to announce they have adopted a measure to incorporate a “best-interest” standard of care for insurance professionals in recommending annuities to consumers. Louisiana joins 45 other states that have implemented “best interest of consumer enhancements” per the National Association of Insurance Commissioners’ Suitability in Annuity Transactions Model Regulation. Please see the attachments for more information

Effective July 1, 2024, Illinois made resident and nonresident producer license fee, and car rental limited license fee changes.  Illinois removed the following citation information on their department website, and “IL Insurance Licensing Examination Handbook”.

The Department verifies licensure in the previous state using the producer database.  A letter of clearance less than 90 days old is still required for producers who are moving to Illinois.

Illinois also updated the following verbiage within the examination handbook. - _The exam fee is $92.00.  The exam fee must be paid at_ _the time of reservation._ - _Applicants must complete pre-licensing education before_ _taking the exam._ Please see the attachment for more information

On July 26, 2024, Arkansas posted bulletin No. 12-2024 to clarify previous bulletins regarding underwriting expenses for surplus lines brokers. All new policies and renewals with an effective date of January 1, 2025, and after will be expected to comply with these fees. Please see the attachment for more information. 

Effective July 2, 2024, North Carolina removed the references below for resident adjuster pre-exam requirements in the North Carolina Licensing Examination Candidate Guide. - A property, casualty, or personal lines producer licensee may apply for an adjuster license without taking the adjuster examination if the individual applies for the adjuster license within 60 days of surrendering the producer license with the casualty, personal lines, or property lines of authority. - An adjuster licensee may apply for a producer license with a casualty, personal lines, or property lines of authority without taking the producer examination if the individual applies for the producer license within 60 days after surrendering the adjuster license.