As of June 1, 2008, new
windstorm or hail exclusions will be in effect
in Alabama and Mississippi under the AAIS
Artisans, Businessowners, and Commercial
Properties programs. The exclusions and
corresponding rating information were recently
approved by the insurance departments of the
respective states.
In both states, exclusions allow insurers of
commercial property to exclude coverage for direct damage to buildings
and personal property by wind or hail. In Mississippi, one option allows
insurers to exclude coverage for loss of income, as well. In Alabama,
companies must follow special advance notice requirements before
attaching the exclusion to a renewal policy.
Minnesota Gov. Tim Pawlenty
recently signed a
law requiring annual disclosures to homeowners
policyholders concerning coverage for flood losses.
(The requirement extends to mobile-homeowners
policies, which are included under the definition of
"homeowners insurance" in Minnesota.)
As of Aug. 1, 2008, insurers in Minnesota must
provide an annual notice to each homeowners and mobile-homeowners
policyholder indicating that the policy does not cover loss due to flood.
The notice may inform the policyholder that the company offers flood
insurance through the National Flood Insurance Program's "Write Your
Own" program.
Since the exact requirements for the
notice--including title, type size, and wording--are specified in the
statute and do not have to be filed, AAIS is not taking action on this
matter.
AAIS will submit filings in Georgia to withdraw uninsured motorist coverage endorsements and
related rejection notices under the AAIS Personal Umbrella, Commercial
Umbrella, and Farm Umbrella programs.
The endorsements and notices were originally filed
in the wake of an August 2006 court ruling which held that uninsured
motorist coverage had to be included in all policies that provided
excess auto liability insurance. Recently, however, Gov. Sonny Perdue
signed a new law exempting umbrella and excess policies from any
requirement to provide uninsured motorist coverage.
AAIS maintains uninsured motorist coverage under its
umbrella programs only when the coverage is required by statute,
regulation, or case law. Thus, AAIS will file to withdraw the endorsements
and notices in Georgia. The filings will have a proposed advisory effective
date of Jan. 1, 2009.
Kansas Gov. Kathleen Sebelius recently signed a
"Flex Rating Regulatory Improvement Model Act" based on the National
Conference of Insurance Legislators' Flex-Rating Model Act. The act
takes effect July 1, 2008.
The act will allow property/casualty insurers
operating in Kansas to increase or decrease rates up to 12% without
regulatory approval. The bill also preserves the insurance department's
authority to stop a rate filing if it is deemed inadequate or unfairly
discriminatory..
