This post is part of a series sponsored by AgentSync.
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.
4 Los Angeles area residents, 3 cars, and a… bear?
No, it’s not the lead-up to a terrible joke, but as far as insurance fraud goes, this one is pretty funny. According to a Nov. 13, 2024 news release from the California Department of Insurance, four LA residents were arrested after allegedly committing an insurance fraud scheme 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, and caused interior damage to the vehicle. The men were lucky enough to capture a video of the proposed attack, which they provided in their claim. However, upon viewing the footage, the insurer came to a shocking discovery.
It appeared the car assailant in question wasn’t 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 suspicion, detectives brought in a biologist from the California Department of Fish and Wildlife to review the three videos. The biologist agreed all three videos showed what was clearly a human in a bear suit entering and damaging the vehicles. And in case that wasn’t enough evidence, one final piece of the puzzle confirmed it. After searching the suspects’ home, 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 won’t be receiving the $141,839 in auto damages they tried to swindle their insurers out of. But no matter the outcome of the case, it seems these fraudsters will just have to grin and bear it.
Oh deer! Missouri reminds drivers to watch out for wildlife
The Missouri Department of Commerce and Insurance (DCI) sent out a reminder for drivers to be aware of the increased deer movement along roadways during the upcoming winter months.
In 2023, the state recorded over 3,500 car accidents 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 collision” and to “always be cautious 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’ll need comprehensive car insurance to cover any injuries or damage caused to your vehicle from 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 as the days get darker for longer.
Does your homeowners policy cover a burning turkey?
If you’ll be spending some extra time in the kitchen this holiday season cooking up a turkey, a tofurkey, or whatever floats your boat, then now might be a good time to review your homeowners insurance policy. The state of Maryland sent out a newsletter reminding its residents to consider the added risks associated with this time of year and to ensure they have the right levels of coverage in place in case their feast goes up in flames.
Beyond spending extra time in the kitchen, Maryland’s newsletter emphasized a few other risks that could be covered by an insurance policy, including increased travel and safeguarding holiday purchases. So whether you’re packing the kids up for a flight to grandma’s or escaping the winter cold with a sunny beach vacation, you might want to consider protecting your trip with a travel insurance policy. And if you’re planning on gifting generously this year, talk to your agent about whether porch piracy is covered in your homeowners or renters insurance policy.
For insurance producers, now’s a good time to reach out to your clients about these coverages and to provide them with resources and recommendations for staying safe and protecting themselves and the things that matter most to them during the holiday season.
Other state regulatory changes
California Insurance Commissioner Recardo Lara announced an impending action aimed at helping protect communities affected by the Mountain Fire in Ventura County. Once the fire’s perimeter is determined, Lara will issue a Bulletin protecting homeowners in certain areas from policy non-renewal or cancellation as a result of wildfire risk. The protections, which will last for one 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 stages of implementing the FAIR Plan in the state. Currently, the only opening is for the Producer seat, which expires on Jan. 1, 2025, but the state encourages individuals to apply for all positions to maintain a diverse and qualified pool of candidates going forward. Interested individuals can apply using this form.
Delaware reduced its nonresident license appointment fees from $50 to $25 effective Nov. 1, 2024. Nice!
Florida announced that starting Nov. 18, 2024, all Surplus Lines Information Portal (SLIP) users 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 increased its retaliatory fee from $16 to $20 effective Nov. 18, 2024.
Kansas updated its application fees for resident agents, nonresident agents, and public adjusters effective Jan. 1, 2025. The new fees are as follows:
- Resident agent: $15
- Nonresident agent: $50
- Public adjuster: $100
Massachusetts will begin validating exams for nonresident Public Adjuster and Adviser applicants effective Dec. 13, 2024. Applicants who’ve not passed their exams will be unable to apply electronically.
New Hampshire announced significant changes to the regulation of consumer guaranty contracts aimed at expanding protections for individuals purchasing service contracts related to homes, vehicles, and other products. The changes, which go into effect Jan. 1, 2025, were driven in large part by an increase in consumer complaints regarding the lack of clarity and consistency in how service contracts are regulated within the state. We love to see these kinds of positive, consumer-led changes!
Oklahoma issued a bulletin reminding insurers that any decisions or actions impacting consumers that are made or supported by AI must comply with all applicable insurance laws and regulations, including those that address unfair trade practices and discrimination. The bulletin sets the Department’s expectations on how insurers will govern the use of certain AI technologies and advises insurers of the type of data and documentation the Department might request in the event of an investigation involving the use of AI.
Pennsylvania is removing their requirements for pre-license education credits for resident licensees. The state is also adding ethics and flood requirements for renewal. Beginning April 29, 2025, all licensed producers in the state will need at least three of their 24 CE credits to cover ethics and at least two to cover flood insurance.
Vermont implemented new transaction types to process designated responsible licensed producers (DRLPs). Effective Nov. 15, 2024, transaction type code 17 will represent DRLP. You can find a refresher on DRLP responsibilities and best practices, here.
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.
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