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QUARTERLY UPDATE - JULY 2023

STATE SPECIFIC UPDATES

Florida: FIGA Approves Emergency 1.00% Assessment

On April 10, 2023, Florida OIR (Office of Insurance Regulation) approved the FIGA Board of Directors certification levying a 1.00% emergency assessment on premium written on all new and renewal account policies issued between October 1, 2023 and September 30, 2024 or until the bonds for this assessment have been paid in full.  



As a result, Canal will be passing this additional FIGA surcharge of 1.00% through to policyholders beginning October 1, 2023, which will apply to Cargo and General Liability lines of business. It will be displayed as a line item on the IL 02, IG 01, IM 01 and Quote Summaries.


There will be a period of time when FIGA surcharges overlap. For ease, Compliance has created a helper sheet (linked here) which outlines the assessments and how Canal is recouping from insureds.

Michigan: Proof of Qualified Health Coverage Required for Certain PIP Limits

All policies with one of the following PIP medical coverage selections MUST PROVIDE current updated documentation every year for Medicaid, Medicare, or other Qualified Health Coverage as applicable to the chosen coverage:


  • $250,000 with some or all persons excluded (Option 4 on A-101 MI SUPP - Individuals)
  • $50,000 per person per accident (Option 5 on A-101 MI SUPP - Individuals)
  • No PIP medical coverage (Option 6 on A-101 MI SUPP - Individuals)


Examples of acceptable forms of QHC documentation can be found here for reference. **Please note, this reference sheet does not encompass all acceptable forms. Feel free to reach out to Compliance with any questions.


**Documentation for QHC should be sent to underwriting@canal-ins.com**

North Carolina: Commercial Auto Loss Recoupment Surcharge Update 2023

Effective October 1, 2023, the North Carolina Reinsurance Facility (NCRF) will be increasing the commercial auto loss recoupment surcharge from 1.17% to 2.16%. Agent commission of 10% is applicable to the surcharge, resulting in a total charge of 2.40%. The surcharge applies to all commercial auto policies containing liability, UM, UIM or Med Pay coverages, whether ceded to the NCRF or retained as voluntary business by Canal Insurance Company.


By law, the surcharge must be combined with and displayed as premium on the declarations page and any billing statement sent to the insured. As a result of the updated amount, the surcharge will automatically be added to all policies effective on or after 10/1/2023 through 9/30/2024, including all premium bearing transactions.

Texas: Increase to Motor Vehicle Crime Prevention Authority Fee (MVCPA)

Texas Senate Bill 224, which received the Governor's approval on May 29, 2003, increases the Motor Vehicle Crime Prevention Authority Fee from $4.00 to $5.00. As a result, Canal will pass this updated fee onto policyholders effective 10/1/2023 for new business and renewal business.

HELPFUL REMINDERS & INFORMATION

Friendly Reminder: To ensure any questions or requests for information get answered in a timely manner, please make sure to send all requests to the compliance@canal-ins.com email address.


FORM UPDATES

Fleet - Monthly Unit Reporting Form Update on the Horizon:

  • IL 87 CW 0723 - Monthly Unit Reporting Form - Liability

Please be advised, a new Monthly Unit Reporting Form (IL 87 CW 0723) will be forthcoming. The new version, which will be implemented within the next few months, will now require a signature from the insured when submitting their report each month. A fillable copy of this form has been loaded into the Resource Center on Agent Connect. An additional bulletin will be sent out to all (including agents) once this new form is implemented in the system.

Please see below for recent and upcoming form changes:

Form

Description

Effective Dates & Applicable States

CA 28 04 09 22 - Texas Abuse or Molestation Exclusion For Covered Autos Liability Exposure

ISO Form which excludes liability arising out of the actual alleged or threatened abuse or molestation of any person committed by anyone. 


9/1/2023 NB & RB - TX

CG 40 15 12 20 - Cannabis Exclusion with Hemp Exception

ISO Form which states "cannabis" is property not covered with an exception for a wide variety of goods or products containing or derived from hemp. 

This form is now applicable in the following states:


10/1/2023 NB & RB - FL

A-101 ID SUPP (9-2023) - ID Supplemental Application

The ID Selection/Rejection form has been revised to clarify offset and excess UM coverage.


9/1/2023 NB & RB - ID

IA 90 ID 0923 - ID UM and UIM Coverage Disclosure

New UM and UIM disclosure notice which will print at new and renewal business. No signature required on this form.


9/1/2023 NB & RB - ID

A-101 MI (09-2023) - MI Supplemental Application - Individuals

New version of the MI Selection/Rejection form which has been split into a separate form when business type = Individual.


9/1/2023 NB & RB - MI

A-101 MI - C (09-2023) - MI Supplemental Application - Commercial

New version of the MI Selection/Rejection form which has been split into a separate form when business type = Other than Individual.


9/1/2023 NB & RB - MI

Additional compliance information and state resources can be found in the state specific compliance manuals which are located in the Resource Center on Agent Connect.

As always, if you have any questions please email Compliance@canal-ins.com.