MIDWEST REGIONAL NEWS
The Wisconsin Office of the Commissioner of Insurance (OCI) has promulgated an administrative rule mandating that insurance agents notify OCI in writing of the following within 30 days of the particular event: any formal administrative action against the agent taken by any other state's insurance regulatory agency; any pretrial hearing date related to any criminal prosecution of the agent taken in any jurisdiction, other than a misdemeanor charge related to the use of a motor vehicle or the violation of a fish and game regulation; any felony conviction or misdemeanor in any jurisdiction, other than a misdemeanor conviction related to the use of a motor vehicle or violation of fish and game regulation; and any lawsuits filed against the agent or the agent's business in which there are allegations of "misrepresentation, fraud, theft or embezzlement" involving the agent or the agent's business.
According to the Independent Insurance Agents of Wisconsin, the first three items are restatements (with some broadening) of current state law. However, the last requirement relating to the reporting of civil lawsuits against an agent is new. Any lawsuit brought by an insured against the agent, as well as any lawsuit brought by any third party, where the claims are based upon the agent's misrepresentation, fraud, theft or embezzlement, must be reported to OCI.
Agents who are subsequently sued and in instances where the allegations in the lawsuit relate to misrepresentation, fraud, theft or embezzlement, prompt reports must be made to OCI. Agents who are currently involved in civil litigation that is based upon similar allegations should notify their attorneys about the new rule and obtain advice as to whether or not OCI must be so informed.
Area News
Illinois and Michigan sign producer licensing bills
Illinois and Michigan have joined 38 other states in enacting laws or adopting regulations to address producer licensing reciprocity requirements outlined in the Gramm-Leach-Bliley Act (GLBA). Michigan's National Association of Insurance Commissioners (NAIC) Model Producer Licensing Act became effective on March 1; Illinois' Producer Licensing Act was effective on January 1. At press time, California, Washington D.C., Florida, Massachusetts, New York, Ohio, Pennsylvania, South Carolina, Tennessee, Vermont and West Virginia had not passed legislation addressing this issue.
Illinois
State Legislative Day scheduled
The Professional Independent Insurance Agents of Illinois (PIIAI), along with the Illinois Association of Insurance and Financial Advisors, the Illinois State Association of Health Underwriters, and the Illinois Insurance Association will jointly host "Insurance Industry Legislative Day" at the state capitol on April 23. The agenda includes numerous high profile political speakers, an issues briefing, and reception at the governor's mansion. For more information, visit the PIIAI Web site (www.piiai.org) or call the association at (217) 793-6660.
Terrorism exclusion endorsement approved
Effective January 1, the Illinois Department of Insurance approved policy exclusions filed by ISO for acts of terrorism. The exclusionary endorsements do not apply to personal lines or workers compensation policies. The DOI will accept exclusions only from companies that provide proof of loss of adequate terrorism reinsurance for the lines of coverage to which the exclusion applies, and all companies must continue to comply with Illinois laws regarding cancellation of commercial insurance policies (215 ILCS 5/143.14, 143.16, 143.16a and 143.23) and non-renewal of commercial policies and commercial renewals, advance notice of any changes in coverage, deductibles or increases in premium (143.17a, i.e. SB 1200). For additional information and details of the endorsement, go to www.state.il.us/ins/cb/cb0111.htm to review the entire DOI Bulletin (CB #2001-11) on the subject. The endorsements were scheduled to sunset on March 31, in anticipation of Congress enacting some kind of federal backstop. If Congress fails to act, the endorsements and bulletin will be extended for another period.
Ohio
New car rental insurance rules passed
The Ohio Department of Insurance has enacted new rules governing the sale of car rental insurance. Counter workers who rent the vehicles and also sell rental coverage are now required to have product training and cannot advise consumers about auto insurance or advise as the whether the rental coverage is needed.
Indiana
Flood seminars planned
The Independent Insurance Agents of Indiana (IIAI) is sponsoring one-day National Flood Insurance Program seminars this month. The seminars feature the new-look Standard Flood Insurance Policy, a review of significant coverage changes, FEMA's revised elevation certificate, and other updates. The meetings will be held April 16 at the IIAI conference center in Indianapolis; April 17 at Don Hall's Guesthouse in Fort Wayne; and April 18 at Avalon Manor in Merrillville. For more information, contact IIAI at (800) 438-4424. *