Bulletin 2013-2: Notification of Fee Increase (Effective 6/15/2013)

insurance.ca.gov disclaimer: content considered public domain; gate-zero CA-a

STATE OF CALIFORNIA                                                             Dave Jones, Insurance Commissioner
DEPARTMENT OF INSURANCE
ADMINISTRATION AND LICENSING SERVICES BRANCH
300 CAPITOL MALL, SUITE 1600
SACRAMENTO, CA 95814
(916) 492-3500
(916) 327-3482 (FAX)
www.insurance.ca.gov

      BULLETIN NO.           2013-2

      DATE:                  March 15, 2013

      TO:                    All Admitted Insurers and Other Interested Parties

      SUBJECT:               Notification of Fee Increase

      In accordance with Insurance Code Section 12978, we respectfully notify you that the
      California Department of Insurance is increasing fees by 10 percent for all insurance
      producers, bail agents, insurance adjusters, and insurers operating in the State of
      California. The increase will be effective June 15, 2013. As an example, an insurance
      agent or broker will see an increase of only $12 for each biennial license or renewal, which
      amounts to only $6 per year.

      This will be the first increase of these fees in almost a decade, as the last increase
      implemented by the Department was in January 2004. In fact, since January 2004, these
      fees were decreased by 12 percent. Even with a 10 percent increase, fees will still be
      below 2004 levels.

      The Department has worked diligently to create operational efficiencies and control costs
      while striving to improve service levels. For example, in the Licensing area:

          •   License applicants can now obtain their license in two to three weeks compared to
              the two to three month timeframe previously experienced.
          •   Through enhanced automation, the Department achieved significant savings by
              sending license renewal notices via email and enabling licensees to instantaneously
              download their new and renewed licenses on its website.
          •   License applicants are able to take their qualifying examination at 21 locations
              statewide, including evenings and weekends, compared to only four locations
              previously provided.
          •   The Department recently converted its licensing process to exam-first from
              application-first, thus reducing initial licensure costs to applicants and industry.
              While positively impacting applicants and industry, this change significantly reduced
              the Department’s revenue in fiscal year 2012-13.

      Pursuant to Insurance Code Section 12978, the Department has the responsibility to set
      fees that provide sufficient revenue to support the Department's budget and meet critical
      workload demands to protect California's insurance consumers as well as to ensure the

                      Consumer Hotline (800) 927-HELP • Producer Licensing (800) 967-9331
solvency of the Insurance Fund. The Department will continue to monitor the Fund in order
to ensure its financial integrity.

The new fee schedule is available for your reference. If you have any questions, please
contact our Producer Licensing Bureau at (800) 967-9331.

PLEASE BE SURE THIS INFORMATION IS DISSEMINATED TO ALL YOUR
APPOINTED AGENTS IN CALIFORNIA.

ERIKA SPERBECK
Deputy Commissioner
Administration & Licensing Services Branch

Attachment


Bulletin 2012-2: Stranger-Originated Annuity Transactions

STATE OF CALIFORNIA
                               DEPARTMENT OF INSURANCE
                                  45 FREMONT STREET
                                SAN FRANCISCO, CA 94105

                                                                           BULLETIN NO. 2012-2
                                                                               MARCH 15, 2012

TO: ALL INSURERS SELLING LIFE INSURANCE OR ANNUITIES IN CALIFORNIA

SUBJECT: STRANGER-ORIGINATED ANNUITY TRANSACTIONS

Insurance companies are encouraged to put safeguards in place to prevent or limit their exposure
to stranger-originated annuity transactions (STOAs).

Like stranger-originated life insurance transactions (STOLI), in stranger-originated annuity
transactions (STOAs), some producers and/or investors offer an individual, who is usually a
“stranger” to the producer and/or investor, a nominal fee for the use of the individual’s identity
as the annuitant, or measuring life, in an investment-oriented annuity. Typically, individuals
targeted to serve as annuitants are in extremely poor health and are not expected to live beyond
the first year of the policy. In order to find individuals who meet the aforementioned criteria,
these producers and/or investors have been known to take out advertisements in papers as well as
solicit individuals residing in nursing homes or hospice.

Once an individual has agreed to the set of conditions posed, the producer will complete the
annuity application, ensuring that particular riders, such as a bonus rider or a guaranteed
minimum death benefit, are in place to maximize the rate of return for those financing the
transaction. Depending on the number of companies the producer represents and the commission
policies in effect, the producer may seek to use multiple policies from various companies.

To avoid added scrutiny of the policy or detection of the scheme, producers involved in STOAs
will often take precautions to ensure that the dollar amount of the annuity falls below specific
underwriting guidelines. A trust or an organization may additionally be named as beneficiary of
the annuity in order to hide the true identity of those who will benefit from the annuitant’s death.

As the financial implications of STOA transactions could be detrimental to both companies and
consumers, it is suggested that companies:

Review chargeback policies and consider reserving the right to adjust commissions if a
policy is annuitized or a death benefit is paid within its first policy year and the facts indicate the
policy was used to facilitate STOA transactions.

Create detection methods to identify STOA transactions and those producers who may be
involved in facilitating such transactions, including controls to flag questionable applications.
Revisit annuity application processes to ensure that specific questions are posed with regard
to the relationship between the annuitant and contract owner, and the manner in which the
contract is being funded.

Report actual and potential STOA transactions to the California Department of Insurance.

Inquiries regarding this Bulletin may be directed to:

       Jennifer Chambers
       Senior Staff Counsel
       California Department of Insurance
       45 Fremont Street, 24th Floor
       San Francisco, CA 94105
       (415) 538-4145
       Jennifer.Chambers@insurance.ca.gov

                                                        DAVE JONES
                                                        Insurance Commissioner


Bulletin 2014-4: Life and Annuity Consumer Protection Fund

STATE OF CALIFORNIA
                              DEPARTMENT OF INSURANCE
                                    45 Fremont Street
                              San Francisco, California 94105

                                                                        BULLETIN NO. 2014-4
                                                                               May 14, 2014

TO:          All Admitted Life Insurance Companies and Other Interested Persons

SUBJECT:     LIFE AND ANNUITY CONSUMER PROTECTION FUND

The purpose of this Bulletin is to inform affected licensees and interested members of the
public of the revisions made to Section 10127.17 of the Insurance Code.

Effective January 1, 2014, SB 476 (Chapter 347, Statutes of 2013) made two substantive
revisions to Section 10127.17 of the Insurance Code. The requirement that each individual life
insurance policy and each individual annuity product have a value of $15,000 or more in order
for the special assessment to apply was deleted. The assessment applies to all newly issued
individual life insurance policies and individual annuity products. Additionally, the date of
repeal of the Life and Annuity Consumer Protection Fund was deleted.

Self-assessments containing data related to each individual life insurance policy and
each individual annuity product issued to a resident of California will begin with the
January-June 2014 reporting period (due July 10, 1014). Self-assessments are to continue
to be submitted semi-annually (by January 10th and July 10th) via the California Department of
Insurance Internet Life & Annuity Data Collection Application - - ILAD.

Questions regarding this Bulletin may be directed to:

Rachelle Gunther
Life & Annuity Program Analyst
California Department of Insurance
45 Fremont Street, 23rd Floor
San Francisco, CA 94105
(415) 538-4359
Rachelle.Gunther@insurance.ca.gov

                                                DAVE JONES
                                                Insurance Commissioner


Bulletin 2013-3: Notification of Fee Increase (Effective 3/17/2014)

Bulletin 2013-3: Notification of Fee Increase Effective March 17, 2014

  -->

  -->

  Skip to Main Content

 Search this site:

  File a Complaint
  Consumers

  File a Complaint
 Ask a question or file a complaint

  Check License Status
 Check License Status

  Types of Insurance
 Understand different types of insurance

  Health Insurance Information
 Learn about health insurance

  Company and Agent/Broker Information
 Find information about insurance companies, agents and brokers

  Laws & Regulations
 Search insurance laws and regulations

  Virtual Viewing Room
 This virtual viewing room allows you to see insurance company rate filings, examination reports, and related information.

  Dealing with Catastrophes
 Prepare for natural disasters

  Administrative Hearings and Public Programs
 Learn about administrative hearings and other public programs

  Cannabis and Insurance
 Find out more about Cannabis and Insurance.

  Bail Bonds
 Learn more about surety bail bonds

  Climate Change
 Climate Change and Insurance

  Information Guides
 Information Guides

  Wildfire Response and Readiness
 Wildfire Response and Readiness

  Seniors

  Alerts
 Review important Alerts, Advisories & Press Releases that impact Seniors.

  Before You Buy Insurance
 Things you should know before you buy insurance.

  Health Coverage
 Health plans are important for Seniors. Please review this important information.

  Long Term Care
 Find out if Long Term Care insurance is something for you.

  Information Guides
 Read information guides specifically designed for seniors.

  Other Resources
 We are providing additional information that you may find helpful.

  Agents & Brokers

  Check a License
 Search for license status information based on license number or name.

  Licensing Online Services
 Convenience & Security at your Fingertips: Apply for an Insurance License, Schedule Examination, License Renewal, Change Your Address, and more.

  Applying for a License
 How to apply for a license for individual resident license, individual non-resident license, and business entity licenses.

  Seeking Prelicensing / Continuing Education
 Prelicensing and continuing education is required by law. Find how and where to get prelicensing and continuing education in this section.

  Licensing Background Information
 Information relating to licensing, background issues and information for producer license applicants regarding Proposition 64, the “Adult Use of Marijuana Act”.

  Check License Application Status Service (CLASS)
 Check License Application Status Service (CLASS)

  Licensing Forms
 List of necessary qualifications, requirements, fees and interactive forms for producer licensing. Plus prelicensing/continuing education forms.

  Licensing Fees
 Licensing Fees

  Resident License Renewal
 All you need to know about renewing your license.

  Non-Resident License Renewal
 All you need to know about renewing your non-resident license.

  Print or Download Your License
 Print or download license

  Updating Licensee Info
 Report a change of address, email address, add an endorsee to a business entity, and producer licensing background review guidelines.

  Licensing Services Division Frequently Asked Questions
 Producer Licensing Frequently Asked Questions

  Applying to Become an Approved Education Provider
 Education provider on-line programs to assist education providers in processing rosters and class schedules and in filing for provider status, course approval, and course development.

  Agent & Broker ALERT
 Agent & Broker ALERT Provided by California Insurance Commissioner's office

  What’s New in the Licensing Services Division
 Major changes in the Licensing Services Division since 2010 including regulations, programs, fees, etc.

  Licensing Services Division Notices
 Licensing Services Division Notices since 2010.

  Mailing List for Producer
 Mailing lists for active individuals, agencies, and insurance companies and order forms.

  Insurers

  Insurers
 Insurers Applications, Forms and Filings, Bulletins & Notices, Programs, Officially Filed Reports of Examination

  Electronic Funds Transfer (EFT) Programs
 Convenient method for the payment of Invoices and Premium Tax remittances. Separate enrollment is required for the Invoice Payments EFT Program and Tax EFT Program.

  OASIS
 Online Assistance System for Insurer Submittals (OASIS)

  Legal Information
 Insurance Code and Regulations, Proposed Regulations, Decisions and Rulings, Hearing Calendar.

  Data & Reports
 Market Share Reports, Consumer Complaint Study,Residential and Commercial Earthquake Insurance Coverage Study, Annual Report of the Commissioner, and More.

  COIN
 California Organized Investment Network (COIN) Is a Collaborative Effort Between the California Department of Insurance, the Insurance Industry, Community Affordable Housing and Economic Development Organizations, and Community Advocates.

  Insurance Diversity Initiative
 IDI is an effort to encourage Supplier Diversity and Governing Board Diversity within California’s insurance industry

  P&C Rate Filing
 Prior Approval Regulations, Workers' Compensation Rate Filings, Public Notices of Rate Filings.

  CRC
 Company Complaint Response Center

  LRS
 Auto Body Repair Labor Rate Survey Tool

  Climate Risk Carbon Initiative
 Interactive database that provides information on insurers' investments in fossil fuel

  Climate Risk Disclosure Survey
 View the Climate Risk Disclosure Survey Results

  Fraud

  Fraud Division Overview
 The Fraud Division investigates suspected fraud committed by consumers or organized criminal elements perpetrated against insurance companies.

  Investigation Division Overview
 The Investigation Division investigates suspected fraud committed by insurance agents, brokers, public adjusters, bail agents, insurance companies and other individuals and entities transacting the business of insurance who perpetrate fraud against consumers.

  File a Commendation or Complaint
 Professional Standards Unit Civilian Commendation/Complaint Forms

  Report Fraud
 Link to CDI’s two suspected insurance fraud reporting systems – 1) Insurance Company Suspected Fraud Reporting Portal and, 2) Consumer Suspected Fraud Reporting Portal.

  Insurance Fraud Grant Programs
 Insurance Fraud Grant Programs

  News

  Press Releases
 Official announcements, news releases.

  Advisories
 Advising media events and activities

  CA Consumer Alerts
 CA Consumer Alerts

  Consumer Success Stories
 Consumer success stories

  Featured Topics
 Provides links to featured topics

  Studies, Reports & Publications
 Market share reports, consumer complaint study, residential and commercial earthquake insurance coverage study, annual report of the commissioner, and more.

  Multimedia
 Video press conferences, public service announcements, hearings and public forums

  About Us

  Meeting Requests
 Scheduling an appointment with Commissioner Lara

  About the Commissioner
 Information about the Commissioner

  About the Department
 Information about the Department's history and organization

  Commissioner Appointments
 Information about the Commissioner's  Appointments to Boards and Committees

  Career Opportunities
 Employment opportunities within the Department of Insurance

  Contact Us
 Contact information for offices and entities

             Maintenance Notice    -->

 Insurers Overview
/
 Insurers
/
 Bulletins & Notices
/
 Bulletins, Notices and Commissioners Opinions
/ Bulletin 2013-3: Notification of Fee Increase Effective March 17, 2014

 Bulletin 2013-3: Notification of Fee Increase Effective March 17, 2014
        Bulletin No.  2013-3
  Date:  December 16, 2013
  To:  All Admitted Insurers and Other Interested Parties
  Subject:  Notification of Fee Increase
 In accordance with Insurance Code Section 12978, we are providing notification that the California Department of Insurance is increasing fees by 10 percent for all insurance producers, bail agents, insurance adjusters, and insurers operating in the State of California effective March 17, 2014. As an example, an insurance agent or broker will see an increase of only $14 for each biennial license or renewal, which amounts to just $7 per year.
 Pursuant to Insurance Code Section 12978, the Department has the responsibility to set fees that provide sufficient revenue to support the Department's budget and meet critical workload demands to protect California's insurance consumers as well as ensure the solvency of the Insurance Fund. The Department works diligently to create operational efficiencies and control costs while improving service levels; however, Fees an License revenue has not kept pace with the cost of doing business. Expenditures in recent years, most outside of the Department's control, continue to outpace revenue growth. For example, employee compensation and statewide administrative costs have increased. Additionally, several newly enacted legislative mandates have increased the Department's workload and required additional resources. Therefore, this increase, only the second in a decade, is necessary to ensure revenues are sufficient to support expenditures. As always, the Department will continue to monitor the Insurance Fund in order to ensure its financial integrity.
 The  new fee schedule is available  for your reference. If you have any questions, please contact our Producer Licensing Bureau at (800) 967-9331.
  Please be sure this information is disseminated to all your appointed agents in California .

 Erika Sperbeck
Deputy Commissioner
Administration & Licensing Services Branch
  A printable version of this Bulletin is available .

   Insurers Overview

 Insurers
 Applications, Forms & Filings  Bulletins & Notices  Programs  Officially Filed Reports of Examination

 Electronic Funds Transfer (EFT) Programs

 OASIS

 Legal Information

 Data & Reports

 COIN

 Insurance Diversity Initiative

 P&C Rate Filing

 CRC

 LRS

 Privacy Policy
 ADA Compliance
 Site Map
 Career Opportunities
 Internships
 Free Document Readers
 Scheduled Site Maintenance

Copyright © California Department of Insurance

   Google™ Translation Disclaimer
  X
 This Google™ translation feature is provided for informational purposes only.
 The Department of Insurance is unable to guarantee the accuracy of this translation and is therefore not liable for any inaccurate information resulting from the translation application tool.
 The Department of Insurance is also unable to guarantee the same page layout for all the languages. Depending on the languages, the page layout may look strange from the original.
 Please consult with a translator for accuracy if you are relying on the translation or are using this site for official business.
 A copy of this disclaimer can also be found on our  Disclaimer  page.
 Select a Language Below /  Seleccione el Idioma Abajo

 Close this box or use the [X]


Bulletin 2013-1: Export List

STATE OF CALIFORNIA
                            DEPARTMENT OF INSURANCE
                                45 FREMONT STREET
                             SAN FRANCISCO, CA 94105

                                                                 Bulletin No. 2013- 1
                                                                 January 8, 20f3

TO:     All Surplus Line Brokers, Admitted Insurers, and Other Interested Persons

SUBJECT: Export List

Pursuant to Insurance Code Section 1763.1, the Commissioner may by order declare
eligible for placement with a nonadmitted insurer and exempt from all the requirements
of Section 1763, except the filing of a confidential written report, any type of insurance
coverage or risk for which he finds after a public hearing that there is not a reasonable
or adequate market among admitted insurers.

This year the Department held a public hearing and comment period regarding the
annual renewal of the list as required by the statute. There is one new item added to
the list and the item is liability coverage for Physician/Medical Group/Hospital Billing
Errors and Omissions.

The Department reminds you that risks and coverages not appearing on this list may
still be exportable but subject to the full documentation of the diligent search being
performed with respect to insurance issued to a home state insured as required by
Insurance Code Section 1763.

A public hearing will be held annually or more often at the Commissioner's discretion
regarding the attached export list. The Commissioner or his designee shall notify all
surplus line brokers of any removal from the list. The contact person is
Carol Frair, Senior Staff Counsel, Department of Insurance, 45 Fremont Street, San
Francisco, CA 94105, (415) 538-4408.

                                 DAVE JONES
                                 Insurance Commissioner

                              By;V ~
                                 Nettie Hoge, chiefoStaff

#756704v1
EXPORT LIST 2013

ACCIDENT /DISABILITY

   BRIDGE PLAN .!.

  HIGH LIMITS DISABILITY .!.,!_

  INTERNATIONAL MAJOR MEDICAL

AUTOMOBILES

  EXOTIC/CLASSIC/ANTIQUE AUTOS WITH A VALUE IN EXCESS OF $100,000

AVIATION

  AVIATION EXCESS LIABILITY

  SHORT TERM MEDIA/ENTERTAINMENT NON-OWNED CONTINGENT AIRCRAFT
  LIABILITY (FILM/ENTERTAINMENT PRODUCTIONS)

CRIME

  EXCESS CRIME

  KIDNAP & RANSOM

FIRE & ALLIED LINES

  AMUSEMENT PARKS/CARNIVALS AND AMUSEMENT DEVICES

  COMMERCIAL DIC/STAND ALONE EARTHQUAKE

  DISASTER INCOME PROTECTION

  EXCESS FLOOD

  EXPLOSIVE MANUFACTURING/SALES/STORAGE

  HAY IN THE OPEN

  HOMEOWNERS EARTHQUAKE/EXCESS LIMITS OR DEDUCTIBLE BUYBACK

  INDIVIDUAL INSUREDS WITH LARGE SCHEDULES WHERE THE TIV(TOTAL
  INSURED VALUES)AR E IN EXCESS OF $500 MILLION

  SAWMILLS

  VACANT BUILDINGS

GENERAL LIABILITY

  AMBULANCE SERVICES INCLUDING PROFESSIONAL LIABILITY

  AMUSEMENT PARKS/CARNIVALS/DEVICES

  BLASTING CONTRACTORS

#756941v2
  : BUILDING MOVING

   CLINICAL AND SIMILAR TESTS OF PHA_RMACEUTICAL, MEDICAL, BIOLOGICAL &
   OTHER SIMI LAR PRODUCTS                                 .

   CONTRACTORS ENGAGED IN CONSTRUCTION OF NEW TRACT HOMES AND/OR
   NEW CONDOMINIUMS

   CRANE & RIGGING CONTRACTORS

   DEMOLITION CONTRACTORS

   EMPLOYMENT PRACTICES LIABILITY

   ENVIRONMENTAL IMPAIRMENT REMEDIATION AND POLLUTION LIABILITY

   EXCESS LIABILITYWHERE PART OF UNDERLYING rs. NONADMITTED

   EXPLOSIVES INCLUDING MANUFACTURING/SALES/STORAGE

   FIREWORKS DISPLAYS

   FOSTER FAMILY (OCCURRENCE BASED ONLY)

   HOT AIR BALLOON

  LIMITS THAT ATTACH IN EXCESS OF $150 MILLION

  OILFiELD CONTRACTORS

  OUTFITTERS AND GUIDES

  PATENT/TRADEMARK/COPYRIGHT INFRINGEMENT

  PRO.DUCTS RECALL

  PRODUCTS/COMPLETED OPERATIONS(WRITTEN ON A STAND ALONE BASIS)

  SEASONAL OR MOBILE FAIRS, CONCESSIONAIRES,- VENDORS AND FAIRS, WITH
  OR WITHOUT LIQUOR LIABILITY .

  SECURITY GUARD SERVICES

  SHORT TERM MEDIA/ENTERTAiNMENT RAILROAD PROJECTIVE LIABILITY
  (FILM/ENTERTAINME NT PRODUCTIONS)

  SHORT TERM SPECIAL EVENTS (EXCLUDING HOLE-IN-ONE)

  TATTOO AND BODY PIERCING SHOPS

INLAND MARINE

  ALL VESSELS IN EXCESS OF 30 FEET AND RATED WITH A MAXIMUM SPEED OF
  45 MPH

  ANY VESSEL/WITH A MAXIMUM RATED SPEED IN EXCESS OF 55 MPH

  EXCESS MOTOR TRUCK CARGO

  PERSONAL ARTICLES FLOATERS WRITTEN ON A STAND ALONE BASIS WHERE
  THE VALUE-OF THE SCHEDULE IS IN EXCESS OF·$1M OR CONTAINS A SINGLE
  ITEM(S) OVER $100,000

#756941v2
  MISCELLANEOUS

     EVENT CANCELLATION

     POLITICAL RISKS INCLUDING EXPROPRIATION, CONFISCATION, UNFAIR
     CALLING

     PRIZE INDEMNIFICATION (EXCLUDING HOLE-IN-ONE COVERAGE)

     SHORT TERM MEDIA/ENTERTAINMENT FAILURE TO SURVIVE FOR $5 MILLION
     AND OVER (FILM/ENTERTAINMENT PRODUCTIONS)

  PROFESSIONAL LIABILITY /ERRORS & OMISSION

     ARCHITECTS & ENGINEERS/CONDO COVERAGE ONLY

     CAMPAIGN TREASURERS

     CREDITORS' COMMITTEES

     PHYSICIAN/MEDICAL GROUP/HOSPITAL BILLING E/0

     TATTOO & BODY PIERCING SHOPS E/0

* The Bridge Plan covers 65 year old people who must wait a certain period before they can enroll
in Medicare. These people either 1) failed to meet the residency requirement of Medicare and
must wait 5 years to meet the residency requirement or 2) failed to enroll during the proper
Medicare enrollment period and now must wait a brief period before they are eligible to enroll.
** High Limits Disability is coverage that offers benefit amounts over the admitted market
maximum issue and participation limits and/or includes occupations which are not eligible.

  #756941v2


Bulletin 2012-3: Fraud General Annual Assessment Adjustment

STATE OF CALIFORNIA                                                       Dave Jones, Insurance Commissioner
DEPARTMENT OF INSURANCE
ADMINISTRATION & LICENSING SERVICES BRANCH
300 CAPITOL MALL, SUITE 1600
SACRAMENTO, CA 95814
(916) 492-3500
(916) 327-3482 (FAX)
www.insurance.ca.gov

        BULLETIN NO.:            2012-3

        DATE:                    March 30, 2012

        TO:                      All Insurers

        SUBJECT:                 Fraud General Annual Assessment Adjustment

        Pursuant to Insurance Code Sections 1872.86 and 12978, this bulletin is informing all
        affected parties that the Fraud General Annual Assessment will be adjusted from
        $2,100 to $4,200 effective July 1, 2012. This assessment was adjusted from $5,100 to
        $2,100 three years ago by the prior Insurance Commissioner, who kept vacant fraud
        enforcement positions open, thereby reducing the Department’s fraud enforcement
        efforts and operational expenditures such that the fee could be lowered. A partial
        restoration of this assessment to $4,200 is necessary at this time to ensure the
        Department has sufficient revenue to fully fund its existing, authorized, and critical fraud
        enforcement activities.

        There will be no change to your annual billing process. You should anticipate receiving
        an invoice in July/August 2012. Please contact Dennis Dunbar at (916) 854-5748 for
        fraud prevention program operations, or Theresa Li at (916) 492-3237 for billing related
        inquiries.

        ERIKA SPERBECK
        Deputy Commissioner
        Administration & Licensing Services Branch

                       Consumer Hotline (800) 927-HELP * Producer Licensing (800) 967-9331


Bulletin 2014-6: Notification of Fee Increase (Effective 3/1/2015)

Bulletin 2013-3: Notification of Fee Increase Effective March 17, 2014

  -->

  -->

  Skip to Main Content

 Search this site:

  File a Complaint
  Consumers

  File a Complaint
 Ask a question or file a complaint

  Check License Status
 Check License Status

  Types of Insurance
 Understand different types of insurance

  Health Insurance Information
 Learn about health insurance

  Company and Agent/Broker Information
 Find information about insurance companies, agents and brokers

  Laws & Regulations
 Search insurance laws and regulations

  Virtual Viewing Room
 This virtual viewing room allows you to see insurance company rate filings, examination reports, and related information.

  Dealing with Catastrophes
 Prepare for natural disasters

  Administrative Hearings and Public Programs
 Learn about administrative hearings and other public programs

  Cannabis and Insurance
 Find out more about Cannabis and Insurance.

  Bail Bonds
 Learn more about surety bail bonds

  Climate Change
 Climate Change and Insurance

  Information Guides
 Information Guides

  Wildfire Response and Readiness
 Wildfire Response and Readiness

  Seniors

  Alerts
 Review important Alerts, Advisories & Press Releases that impact Seniors.

  Before You Buy Insurance
 Things you should know before you buy insurance.

  Health Coverage
 Health plans are important for Seniors. Please review this important information.

  Long Term Care
 Find out if Long Term Care insurance is something for you.

  Information Guides
 Read information guides specifically designed for seniors.

  Other Resources
 We are providing additional information that you may find helpful.

  Agents & Brokers

  Check a License
 Search for license status information based on license number or name.

  Licensing Online Services
 Convenience & Security at your Fingertips: Apply for an Insurance License, Schedule Examination, License Renewal, Change Your Address, and more.

  Applying for a License
 How to apply for a license for individual resident license, individual non-resident license, and business entity licenses.

  Seeking Prelicensing / Continuing Education
 Prelicensing and continuing education is required by law. Find how and where to get prelicensing and continuing education in this section.

  Licensing Background Information
 Information relating to licensing, background issues and information for producer license applicants regarding Proposition 64, the “Adult Use of Marijuana Act”.

  Check License Application Status Service (CLASS)
 Check License Application Status Service (CLASS)

  Licensing Forms
 List of necessary qualifications, requirements, fees and interactive forms for producer licensing. Plus prelicensing/continuing education forms.

  Licensing Fees
 Licensing Fees

  Resident License Renewal
 All you need to know about renewing your license.

  Non-Resident License Renewal
 All you need to know about renewing your non-resident license.

  Print or Download Your License
 Print or download license

  Updating Licensee Info
 Report a change of address, email address, add an endorsee to a business entity, and producer licensing background review guidelines.

  Licensing Services Division Frequently Asked Questions
 Producer Licensing Frequently Asked Questions

  Applying to Become an Approved Education Provider
 Education provider on-line programs to assist education providers in processing rosters and class schedules and in filing for provider status, course approval, and course development.

  Agent & Broker ALERT
 Agent & Broker ALERT Provided by California Insurance Commissioner's office

  What’s New in the Licensing Services Division
 Major changes in the Licensing Services Division since 2010 including regulations, programs, fees, etc.

  Licensing Services Division Notices
 Licensing Services Division Notices since 2010.

  Mailing List for Producer
 Mailing lists for active individuals, agencies, and insurance companies and order forms.

  Insurers

  Insurers
 Insurers Applications, Forms and Filings, Bulletins & Notices, Programs, Officially Filed Reports of Examination

  Electronic Funds Transfer (EFT) Programs
 Convenient method for the payment of Invoices and Premium Tax remittances. Separate enrollment is required for the Invoice Payments EFT Program and Tax EFT Program.

  OASIS
 Online Assistance System for Insurer Submittals (OASIS)

  Legal Information
 Insurance Code and Regulations, Proposed Regulations, Decisions and Rulings, Hearing Calendar.

  Data & Reports
 Market Share Reports, Consumer Complaint Study,Residential and Commercial Earthquake Insurance Coverage Study, Annual Report of the Commissioner, and More.

  COIN
 California Organized Investment Network (COIN) Is a Collaborative Effort Between the California Department of Insurance, the Insurance Industry, Community Affordable Housing and Economic Development Organizations, and Community Advocates.

  Insurance Diversity Initiative
 IDI is an effort to encourage Supplier Diversity and Governing Board Diversity within California’s insurance industry

  P&C Rate Filing
 Prior Approval Regulations, Workers' Compensation Rate Filings, Public Notices of Rate Filings.

  CRC
 Company Complaint Response Center

  LRS
 Auto Body Repair Labor Rate Survey Tool

  Climate Risk Carbon Initiative
 Interactive database that provides information on insurers' investments in fossil fuel

  Climate Risk Disclosure Survey
 View the Climate Risk Disclosure Survey Results

  Fraud

  Fraud Division Overview
 The Fraud Division investigates suspected fraud committed by consumers or organized criminal elements perpetrated against insurance companies.

  Investigation Division Overview
 The Investigation Division investigates suspected fraud committed by insurance agents, brokers, public adjusters, bail agents, insurance companies and other individuals and entities transacting the business of insurance who perpetrate fraud against consumers.

  File a Commendation or Complaint
 Professional Standards Unit Civilian Commendation/Complaint Forms

  Report Fraud
 Link to CDI’s two suspected insurance fraud reporting systems – 1) Insurance Company Suspected Fraud Reporting Portal and, 2) Consumer Suspected Fraud Reporting Portal.

  Insurance Fraud Grant Programs
 Insurance Fraud Grant Programs

  News

  Press Releases
 Official announcements, news releases.

  Advisories
 Advising media events and activities

  CA Consumer Alerts
 CA Consumer Alerts

  Consumer Success Stories
 Consumer success stories

  Featured Topics
 Provides links to featured topics

  Studies, Reports & Publications
 Market share reports, consumer complaint study, residential and commercial earthquake insurance coverage study, annual report of the commissioner, and more.

  Multimedia
 Video press conferences, public service announcements, hearings and public forums

  About Us

  Meeting Requests
 Scheduling an appointment with Commissioner Lara

  About the Commissioner
 Information about the Commissioner

  About the Department
 Information about the Department's history and organization

  Commissioner Appointments
 Information about the Commissioner's  Appointments to Boards and Committees

  Career Opportunities
 Employment opportunities within the Department of Insurance

  Contact Us
 Contact information for offices and entities

             Maintenance Notice    -->

 Insurers Overview
/
 Insurers
/
 Bulletins & Notices
/
 Bulletins, Notices and Commissioners Opinions
/ Bulletin 2014-6: Notification of Fee Increase Effective March 1, 2015

 Bulletin 2014-6: Notification of Fee Increase Effective March 1, 2015
        Bulletin No.  2014-6
  Date:  December 1, 2014
  To:  All Admitted Insurers and Other Interested Parties
  Subject:  Notification of Fee Increase
 In accordance with Insurance Code Section 12978, we are
providing notification that the California Department of Insurance is
increasing fees by 10 percent for all insurance producers, bail agents,
insurance adjusters, and insurers operating in the State of California
effective March 1, 2015. As an example,
an insurance agent or broker will see an increase of only $16 for each biennial
license or renewal, which amounts to just $8 per year.

Pursuant to Insurance Code Section 12978, the Department
has the responsibility to set fees that provide sufficient revenue to support
the Department's budget and meet critical workload demands to protect
California's insurance consumers as well as ensure the solvency of the
Insurance Fund. The Department works
diligently to create operational efficiencies and control costs while improving
service levels;however, revenue has not kept pace with the cost of doing
business. Expenditures in recent years, most outside of the Department's
control, continue to outpace revenue growth. For example, recent employee compensation increases negotiated by the
Governor and approved by the Legislature, and employer pension contributions
adopted by CalPERS beginning July 1, 2014, significantly increase the
Department's costs, a portion of which must be covered by Fees and Licenses. Therefore, this increase is necessary to
ensure revenues are sufficient to support expenditures. As always, the Department will continue to
monitor the Insurance Fund in order to ensure its financial integrity.

 The  new fee schedule is available  for your reference. If you have any questions, please contact our Licensing Hotline at (800) 967-9331.
  Please be sure this information is disseminated to all your appointed agents in California .

 Erika Sperbeck
Deputy Commissioner
Administration & Licensing Services Branch
  A printable version of this Bulletin is available .

   Insurers Overview

 Insurers
 Applications, Forms & Filings  Bulletins & Notices  Programs  Officially Filed Reports of Examination

 Electronic Funds Transfer (EFT) Programs

 OASIS

 Legal Information

 Data & Reports

 COIN

 Insurance Diversity Initiative

 P&C Rate Filing

 CRC

 LRS

 Privacy Policy
 ADA Compliance
 Site Map
 Career Opportunities
 Internships
 Free Document Readers
 Scheduled Site Maintenance

Copyright © California Department of Insurance

   Google™ Translation Disclaimer
  X
 This Google™ translation feature is provided for informational purposes only.
 The Department of Insurance is unable to guarantee the accuracy of this translation and is therefore not liable for any inaccurate information resulting from the translation application tool.
 The Department of Insurance is also unable to guarantee the same page layout for all the languages. Depending on the languages, the page layout may look strange from the original.
 Please consult with a translator for accuracy if you are relying on the translation or are using this site for official business.
 A copy of this disclaimer can also be found on our  Disclaimer  page.
 Select a Language Below /  Seleccione el Idioma Abajo

 Close this box or use the [X]


Bulletin 2014-5: New Mortality Table for use in Determining Minimum Reserve Liabilities for Individual Annuity and Pure Endowment Contracts

STATE OF CALIFORNIA
                               DEPARTMENT OF INSURANCE
                                 300 Capitol Mall 17th Floor
                                Sacramento, California 95814

                                         Bulletin 2014-5
                                        October 30, 2014

TO:            All Admitted Life Insurers and Other Interested Parties

SUBJECT:       New Mortality Table for use in Determining Minimum Reserve Liabilities
               for Individual Annuity and Pure Endowment Contracts

Section 1. Authority

This bulletin is issued under the authority of Insurance Code § 10489.3.

Section 2. Purpose

For individual annuity and pure endowment contracts issued and proceeds applied on or after
January 1, 2015, this bulletin requires use of the 2012 Individual Annuity Reserving (2012 IAR)
Table, recently adopted by the National Association of Insurance Commissioners (NAIC), for
use in determining the minimum standard of valuation for individual annuity and pure
endowment contracts, and withdraws approval of previously adopted valuation standards.

Section 3. Definitions

(a) “Period Table” means a table of mortality rates applicable to a given calendar year (the
Period).

(b) “Generational mortality table” means a mortality table containing a set of mortality rates that
decrease for a given age from one year to the next based on a combination of a Period Table and
a projection scale containing rates of mortality improvement.

(c) “2012 Individual Annuity Mortality (2012 IAM) Period Table” means the Period Table
containing loaded mortality rates for calendar year 2012. This table contains rates, qx2012+n,
developed by the Society of Actuaries Committee on Life Insurance Research and is shown in
Appendices I - II.

                                                 1
(d) “Projection Scale G2 (Scale G2)” is a table of annual rates, G2x, of mortality improvement
by age for projecting future mortality rates beyond calendar year 2012. This table was developed
by the Society of Actuaries Committee on Life Insurance Research and is shown in Appendices
III - IV.

(e) “2012 IAR Table” means that generational mortality table developed by the Society of
Actuaries Committee on Life Insurance Research and containing rates, qx2012+n, derived from a
combination of the 2012 IAM Period Table and Projection Scale G2, using the methodology
stated in Section 4.

Section 4. 2012 IAR Mortality Table

The 2012 IAR Mortality Table shall be used for determining the minimum standard of valuation
for any individual annuity or pure endowment contract issued or proceeds applied on or after
January 1, 2015.

In using the “2012 IAR Mortality Table,” the mortality rate for a person age x in year (2012 + n)
is calculated as follows:

                qx2012+n =qx2012 (1 – G2x) n

The resulting qx2012+n shall be rounded to three decimal places per 1,000, e.g., 0.741 deaths per
1,000. Also, the rounding shall occur according to the formula above, starting at the 2012 Period
Table rate.

For example, for a male age 30, qx2012= 0.741.
qx2013= 0.741 * (1 – 0.010) ^ 1 = 0.73359, which is rounded to 0.734.
qx2014= 0.741 * (1 – 0.010) ^ 2 = 0.7262541, which is rounded to 0.726.

It is incorrect to use the rounded qxn to calculate qxn+1.

Section 5. Contracts issued and proceeds applied prior to January 1, 2015

For contracts issued and proceeds applied prior to January 1, 2015 the mortality tables in effect
at the issuance of the annuity or pure endowment contract will continue to be applicable. See
Bulletin Numbers 85-14, 91-12, and 98-1. Approval for use of such tables for individual annuity
contracts issued and proceeds applied on or after January 1, 2015 is hereby withdrawn.

Section 6. Effective Date

This bulletin is effective January 1, 2015.

                                                   2
Section 7. Questions

Questions regarding this bulletin may be referred to:

Ahmad Kamil, FSA, FIA, MAAA
Senior Life Actuary
California Department of Insurance
300 South Spring St., 14th Floor
Los Angeles, CA 90013
Phone: (213) 346-6147
E-mail: Ahmad.Kamil@insurance.ca.gov

                                             DAVE JONES
                                             Insurance Commissioner

                                             By: __________________________
                                                 GEOFFREY F. MARGOLIS
                                                 Deputy Commissioner & Special Counsel

                                                3
                                APPENDIX I
                             2012 IAM Period Table
                           Female, Age Nearest Birthday

Age   1000·qx 2012   Age    1000·qx 2012       Age    1000·qx 2012   Age   1000·qx 2012

 0    1.621          30      0.300             60      3.460         90      88.377
 1    0.405          31      0.321             61      3.916         91      97.491
 2    0.259          32      0.338             62      4.409         92     107.269
 3    0.179          33      0.351             63      4.933         93     118.201
 4    0.137          34      0.365             64      5.507         94     130.969
 5    0.125          35      0.381             65      6.146         95     146.449
 6    0.117          36      0.402             66      6.551         96     163.908
 7    0.110          37      0.429             67      7.039         97     179.695
 8    0.095          38      0.463             68      7.628         98     196.151
 9    0.088          39      0.504             69      8.311         99     213.150
10    0.085          40      0.552             70      9.074         100    230.722
11    0.086          41      0.600             71      9.910         101    251.505
12    0.094          42      0.650             72     10.827         102    273.007
13    0.108          43      0.697             73     11.839         103    295.086
14    0.131          44      0.740             74     12.974         104    317.591
15    0.156          45      0.780             75     14.282         105    340.362
16    0.179          46      0.825             76     15.799         106    362.371
17    0.198          47      0.885             77     17.550         107    384.113
18    0.211          48      0.964             78     19.582         108    400.000
19    0.221          49      1.051             79     21.970         109    400.000
20    0.228          50      1.161             80     24.821         110    400.000
21    0.234          51      1.308             81     28.351         111    400.000
22    0.240          52      1.460             82     32.509         112    400.000
23    0.245          53      1.613             83     37.329         113    400.000
24    0.247          54      1.774             84     42.830         114    400.000
25    0.250          55      1.950             85     48.997         115    400.000
26    0.256          56      2.154             86     55.774         116    400.000
27    0.261          57      2.399             87     63.140         117    400.000
28    0.270          58      2.700             88     71.066         118    400.000
29    0.281          59      3.054             89     79.502         119    400.000
                                                                     120   1000.000

                                           4
                                     APPENDIX II
                               2012 IAM Period Table
                              Male, Age Nearest Birthday

 Age    1000·qx 2012   Age   1000·qx 2012        Age       1000·qx 2012   Age    1000·qx 2012

 0     1.605           30    0.741                60        5.096          90        109.993
 1     0.401           31    0.751                61        5.614          91        123.119
 2     0.275           32    0.754                62        6.169          92        137.168
 3     0.229           33    0.756                63        6.759          93        152.171
 4     0.174           34    0.756                64        7.398          94        168.194
 5     0.168           35    0.756                65        8.106          95        185.260
 6     0.165           36    0.756                66        8.548          96        197.322
 7     0.159           37    0.756                67        9.076          97        214.751
 8     0.143           38    0.756                68        9.708          98        232.507
 9     0.129           39    0.800                69       10.463          99        250.397
10     0.113           40    0.859                70       11.357          100       268.607
11     0.111           41    0.926                71       12.418          101       290.016
12     0.132           42    0.999                72       13.675          102       311.849
13     0.169           43    1.069                73       15.150          103       333.962
14     0.213           44    1.142                74       16.860          104       356.207
15     0.254           45    1.219                75       18.815          105       380.000
16     0.293           46    1.318                76       21.031          106       400.000
17     0.328           47    1.454                77       23.540          107       400.000
18     0.359           48    1.627                78       26.375          108       400.000
19     0.387           49    1.829                79       29.572          109       400.000
20     0.414           50    2.057                80       33.234          110       400.000
21     0.443           51    2.302                81       37.533          111       400.000
22     0.473           52    2.545                82       42.261          112       400.000
23     0.513           53    2.779                83       47.441          113       400.000
24     0.554           54    3.011                84       53.233          114       400.000
25     0.602           55    3.254                85       59.855          115       400.000
26     0.655           56    3.529                86       67.514          116       400.000
27     0.688           57    3.845                87       76.340          117       400.000
28     0.710           58    4.213                88       86.388          118       400.000
29     0.727           59    4.631                89       97.634          119      400.000
                                                                           120     1000.000

                                            5
                             APPENDIX III
                          Projection Scale G2
                      Female, Age Nearest Birthday

Age    G2x    Age    G2x              Age        G2x   Age    G2x

 0    0.010   30    0.010              60      0.013    90   0.006
 1    0.010   31    0.010              61      0.013    91   0.006
 2    0.010   32    0.010              62      0.013    92   0.005
 3    0.010   33    0.010              63      0.013    93   0.005
 4    0.010   34    0.010              64      0.013    94   0.004
 5    0.010   35    0.010              65      0.013    95   0.004
 6    0.010   36    0.010              66      0.013    96   0.004
 7    0.010   37    0.010              67      0.013    97   0.003
 8    0.010   38    0.010              68      0.013    98   0.003
 9    0.010   39    0.010              69      0.013    99   0.002
10    0.010   40    0.010              70      0.013   100   0.002
11    0.010   41    0.010              71      0.013   101   0.002
12    0.010   42    0.010              72      0.013   102   0.001
13    0.010   43    0.010              73      0.013   103   0.001
14    0.010   44    0.010              74      0.013   104   0.000
15    0.010   45    0.010              75      0.013   105   0.000
16    0.010   46    0.010              76      0.013   106   0.000
17    0.010   47    0.010              77      0.013   107   0.000
18    0.010   48    0.010              78      0.013   108   0.000
19    0.010   49    0.010              79      0.013   109   0.000
20    0.010   50    0.010              80      0.013   110   0.000
21    0.010   51    0.010              81      0.012   111   0.000
22    0.010   52    0.011              82      0.012   112   0.000
23    0.010   53    0.011              83      0.011   113   0.000
24    0.010   54    0.011              84      0.010   114   0.000
25    0.010   55    0.012              85      0.010   115   0.000
26    0.010   56    0.012              86      0.009   116   0.000
27    0.010   57    0.012              87      0.008   117   0.000
28    0.010   58    0.012              88      0.007   118   0.000
29    0.010   59    0.013              89      0.007   119   0.000
                                                       120   0.000

                                6
                                  APPENDIX IV
                                Projection Scale G2
                            Male, Age Nearest Birthday

Age   G2x     Age     G2x                 Age       G2x   Age   G2x

0     0.010   30    0.010                 60     0.015    90    0.007
1     0.010   31    0.010                 61     0.015    91    0.007
2     0.010   32    0.010                 62     0.015    92    0.006
3     0.010   33    0.010                 63     0.015    93    0.005
4     0.010   34    0.010                 64     0.015    94    0.005
5     0.010   35    0.010                 65     0.015    95    0.004
6     0.010   36    0.010                 66     0.015    96    0.004
7     0.010   37    0.010                 67     0.015    97    0.003
8     0.010   38    0.010                 68     0.015    98    0.003
9     0.010   39    0.010                 69     0.015    99    0.002
10    0.010   40    0.010                 70     0.015    100   0.002
11    0.010   41    0.010                 71     0.015    101   0.002
12    0.010   42    0.010                 72     0.015    102   0.001
13    0.010   43    0.010                 73     0.015    103   0.001
14    0.010   44    0.010                 74     0.015    104   0.000
15    0.010   45    0.010                 75     0.015    105   0.000
16    0.010   46    0.010                 76     0.015    106   0.000
17    0.010   47    0.010                 77     0.015    107   0.000
18    0.010   48    0.010                 78     0.015    108   0.000
19    0.010   49    0.010                 79     0.015    109   0.000
20    0.010   50    0.010                 80     0.015    110   0.000
21    0.010   51    0.011                 81     0.014    111   0.000
22    0.010   52    0.011                 82     0.013    112   0.000
23    0.010   53    0.012                 83     0.013    113   0.000
24    0.010   54    0.012                 84     0.012    114   0.000
25    0.010   55    0.013                 85     0.011    115   0.000
26    0.010   56    0.013                 86     0.010    116   0.000
27    0.010   57    0.014                 87     0.009    117   0.000
28    0.010   58    0.014                 88     0.009    118   0.000
29    0.010   59    0.015                 89     0.008    119   0.000
                                                          120   0.000

                                     7


Bulletin 2014-2: Transaction of Insurance in Other States and Territories

STATE OF CALIFORNIA
                                        Department of Insurance
                                        45 Fremont Street, 24th Floor
                                        San Francisco, CA 94105

BULLETIN NO. 14-2
February 28, 2014

TO:             ALL DOMESTIC INSURERS AND RECIPROCAL STATES AND TERRITORIES

SUBJECT:        TRANSACTION OF INSURANCE IN OTHER STATES AND TERRITORIES

Please take notice that, pursuant to the provisions of Section 706.7 of the California Insurance Code, the
following States and Territories of the United States are hereby recognized as "reciprocal States" within
the meaning of said Section:

 1.     ALASKA (Sec. 21.69.420, Alaska Statutes)
 2.     COLORADO (Sec. 10-1-117, Colorado Revised Statutes)
 3.     DELAWARE (Title 18, Sec. 4925, Delaware Code)
 4.     FLORIDA (Title 37, Sec. 628.291, Florida Statutes)
 5.     HAWAII (Sec. 431:4-127, Hawaii Revised Statutes)
 6.     IDAHO (Sec. 41-2851, Idaho Code)
 7.     KANSAS (Sec. 40-214, Kansas Statutes)
 8.     LOUISIANA (Sec. 22:1905, Louisiana Revised Statutes)
 9.     MAINE (Title 24-A, Sec. 3421, Maine Revised Statutes)
10.     MARYLAND (Sec. 3-128, Maryland Ins. Code Annotated)
11.     MICHIGAN (Sec. 500.5208(1), Michigan Compiled Laws )
12.     MISSISSIPPI (Sec. 83-19-69, Mississippi Code Annotated)
13.     MONTANA (Sec. 33-3-502, Montana Code Annotated)
14.     NEBRASKA (Sec. 44-2501, Nebraska Revised Statutes Annotated)
15.     NEW HAMPSHIRE (Sec. 402:54, New Hampshire Revised Statutes Annotated)
16.     NEW MEXICO (Sec. 59A-34-33, New Mexico Statutes Annotated)
17.     NORTH CAROLINA (Sec. 58-14-5, North Carolina General Statutes)
18.     NORTH DAKOTA (Sec. 26.1-05-34, North Dakota Ins. Code)
19.     OHIO (Sec. 3905.44, Ohio Revised Code Annotated)
20.     OREGON (Title 56, Sec. 731.454, Oregon Revised Statutes)
21.     PUERTO RICO (Title 26, Sec. 2932(3), Laws of Puerto Rico Annotated)
22.     SOUTH DAKOTA (Sec. 58-5-100, South Dakota Codified Laws)
23.     UTAH (Sec. 31A-5-602, Utah Code Annotated)
24.     VIRGIN ISLANDS (Title 22, Sec. 314, Virgin Islands Code)
25.     VIRGINIA (Sec. 38.2-3102, Virginia Code Annotated [Life & Annuities Only])
26.     WASHINGTON (Sec. 48.07.150, Revised Code of Washington)
27.     WEST VIRGINIA (Sec. 33-4-19, West Virginia Code)
28.     WYOMING (Sec. 26-24-140, Wyoming Statutes)

Please take further notice that this Department has notified the respective Insurance Commissioners,
Directors or Superintendents of the above-named States and Territories that their jurisdictions constitute
"reciprocal States" under the provisions of said Section, and has requested such Commissioners, Directors
or Superintendents to notify this Department of any and all violations by any of our domestic insurers
with respect to the above-captioned matter occurring in their respective jurisdictions.

                                                                   DAVE JONES
                                                               Insurance Commissioner
                                     California Insurance Code
                                          Section 706.7

   As used in this Section, the term “reciprocal State” means a State the laws of which prohibit
an insurer domiciled therein from insuring the lives or persons of residents of, or property or
operations located in, the State of California unless it then holds a valid and subsisting certificate
of authority issued by the Insurance Commissioner of this State. Such prohibition may be subject
to the exceptions herein set forth.

  Subject to the exceptions herein set forth, a domestic insurer shall not enter into a contract of
insurance upon the life or person of a resident of, or property or operations located in, a
reciprocal State unless it is authorized pursuant to the laws of that State to transact such
insurance therein. The Commissioner shall, every four years, mail notice to every domestic
insurer, specifying the reciprocal States.

The exceptions to the provisions of this section are the following:

(a) Contracts entered into where the prospective insurant is personally present in the State
in which the insurer is authorized to transact insurance when he signs the application.

(b) The issuance of certificates under a lawfully transacted group life or group disability
policy, where the master policy was entered into in a State in which the insurer was  then
authorized to transact insurance.

(c)    The renewal or continuance in force, with or without modification, of contracts
otherwise lawful and which were not originally executed in violation of this section.


Bulletin 2014-1: Export List

STATE OF CALIFORNIA
                            DEPARTMENT OF INSURANCE
                                45 FREMONT STREET
                             SAN FRANCISCO, CA 94105

                                                                  Bulletin No. 2014- 1
                                                                  January 8, 2014

TO:     All Surplus Line Brokers, Admitted Insurers, and Other Interested Persons

SUBJECT: Export List

Pursuant to Insurance Code Section 1763.1, the Commissioner may by order declare
eligible for placement with a nonadmitted insurer and exempt from all the requirements
of Section 1763, except the filing of a confidential written report, any type of insurance
coverage or risk for which he finds after a public hearing that there is not a reasonable
or adequate market among admitted,insurers.

This year the Department held a public hearing and comment period regarding the
annual renewal of the list as required by the statute. No changes were made to the
Export List.

The Department reminds you that risks and coverages not appearing on this list may
still be exportable but subject to the full documentation of the diligent search being
performed with respect to insurance issued to a home state insured as required by
Insurance Code Section 1763.

A public hearing will be held annually or more often at the Commissioner's discretion
regarding the attached export list. The Commissioner or his designee shall noJify all
surplus line brokers of any removal from the list. The contact person is
Carol Frair, Senior Staff Counsel, Department of Insurance, 45 Fremont Street, San
Francisco, CA 94105, (415) 538-4408.

                                 DAVE JONES
                                 Insurance Commissioner

                              By,/-!,-:.:......=.l£_-=~----+-_,,,~--
                                 Nettie Hoge

#824191v1
EXPORT LIST 2014

ACCIDENT/DISABILITY

  BRIDGE PLAN .!

  HIGH LIMITS DISABILITY ~

  INTERNATIONAL MAJOR MEDICAL

AUTOMOBILES

  EXOTIC/CLASSIC/ANTIQUE AUTOS WITH A VALUE IN EXCESS OF $100,000

AVIATION

  AVIATION EXCESS LIABILITY
  SHORT TERM MEDIA/ENTERTAINMENT NON-OWNED CONTINGENT AIRCRAFT
  LIABILITY (FILM/ENTERTAINMENT PRODUCTIONS)

CRIME

  EXCESS CRIME

  KIDNAP & RANSOM

FIRE & ALLIED LINES

  AMUSEMENT PARKS/CARNIVALS AND AMUSEMENT DEVICES
  COMMERCIAL DIC/STAND ALONE EARTHQUAKE

  DISASTER INCOME PROTECTION

  EXCESS FLOOD
  EXPLOSIVE MANUFACTURING/SALES/STORAGE
  HAY IN THE OPEN
  HOMEOWNERS EARTHQUAKE/EXCESS LIMITS OR DEDUCTIBLE BUYBACK

  INDIVIDUAL INSUREDS WITH LARGE SCHEDULES WHERE THE TIV(TOTAL
  INSURED VALUES)AR E IN EXCESS OF $500 MILLION

  SAWMILLS

  VACANT BUILDINGS

GENERAL LIABILITY

  AMBULANCE SERVICES INCLUDING PROFESSIONAL LIABILITY

  AMUSEMENT PARKS/CARNIVALS/DEVICES

   BLASTING CONTRACTORS

#824192v1
    BUILDING MOVING

  . CLINICAL AND SIMILAR TESTS OF PHARMACEUTICAL, MEDICAL, BIOLOGICAL &.
    OTHER SIMI LAR PRODUCTS

   CONTRACTORS ENGAGED IN CONSTRUCTION OF NEW TRACT HOMES AND/OR
   NEW CONDOMINIUMS

   CRANE& RIGGING CONTRACTORS

   DEMOLITION CONTRACTORS

   EMPLOYMENT PRACTICES LIABILITY

   ENVIRONMENTAL IMPAIRMENT REMEDIATION AND POLLUTION LIABILITY

   EXCESS LIABILITYWHERE PART OF UNDERLYING IS NONADMITTED

   EXPLOSIVES INCLUDING MANUFACTURING/SALES/STORAGE

   FIREWORKS DISPLAYS

   FOSTER FAMILY (OCCURRENCE BASED ONLY)

   HOT AIR BALLOON

   LIMITS THAT ATTACH IN EXCESS OF $150 MILLION

   OILFIELD CONTRACTORS

   OUTFITTERS AND GUIDES

   PATENT/TRADEMARK/COPYRIGHT INFRINGEMENT

   PRODUCTS RECALL

   PRODUCTS/COMPLETED OPERATIONS(WRITTEN ON A STAND ALONE BASIS)

   SEASONAL OR MOBILE FAIRS, CONCESSIONAIRES, VENDORS AND FAIRS, WITH
   OR WITHOUT LIQUOR LIABILITY

   SECURITY GUARD SERVICES

   SHORT TERM MEDIA/ENTERTAINMENT RAILROAD PROTECTIVE LIABILITY
   (FILM/ENTERTAINMENT PRODUCTIONS)

   SHORT TERM SPECIAL EVENTS (EXCLUDING HOLE-IN-ONE)

  TATTOO AND BODY PIERCING SHOPS

INLAND MARINE

  ALL VESSELS IN EXCESS OF 30 FEET AND RATED WITH A MAXIMUM SPEED OF
  45 MPH

  ANY VESSEL/WITH A MAXIMUM RATED SPEED IN EXCESS OF 55 MPH

  EXCESS MOTOR TRUCK CARGO

  PERSONAL ARTICLES FLOATERS WRITTEN ON A STAND ALONE BASIS WHERE
  THE VALUE OF THE SCHEDULE IS IN EXCESS OF $1M OR CONTAINS A SINGLE
  ITEM(S) OVER $100,000

#824192vl
     MISCELLANEOUS

       EVENT CANCELLATION

       POLITICAL RISKS INCLUDING EXPROPRIATION, CONFISCATION, UNFAIR
       CALLING

       PRIZE INDEMNIFICATION (EXCLUDING HOLE-IN-ONE COVERAGE)

       SHORT TERM MEDIA/ENTERTAINMENT FAILURE TO SURVIVE FOR $5 MILLION
       AND OVER (FILM/ENTERTAINMENT PRODUCTIONS)

     PROFESSIONAL LIABILITY /ERRORS & OMISSION

       ARCHITECTS & ENGINEERS/CONDO COVERAGE ONLY

       CAMPAIGN TREASURERS

       CREDITORS' COMMITTEES

       PHYSICIAN/MEDICAL GROUP/HOSPITAL BILLING E/O

       TATTOO & BODY PIERCING SHOPS E/O

* The Bridge Plan covers 65 year old people who must wait a certain period before they can enroll
in Medicare. These people either 1) failed to meet the residency requirement of Medicare and
must wait 5 years to meet the residency requirement or 2) failed to enroll during the proper
Medicare enrollment period and now must wait a brief period before they are eligible to enroll.
**High Limits Disability is coverage that offers benefit amounts over the admitted market
maximum issue and participation limits and/or includes occupations which are not eligible.

    #824192v1


Bulletin 2011-2: Implementation of Reinsurance Provisions of the Federal Nonadmitted and Reinsurance Reform Act

STATE OF CALIFORNIA
                              DEPARTMENT OF INSURANCE
                                     45 Fremont Street
                               San Francisco, California 94105

                                                                         BULLETIN NO. 2011-2
                                                                               April 11, 2011

TO:            All Admitted Insurers and Other Interested Persons

SUBJECT:       IMPLEMENTATION OF REINSURANCE PROVISIONS OF THE
               FEDERAL NONADMITTED AND REINSURANCE REFORM ACT

The purpose of this Bulletin is to inform admitted insurers and other interested persons of the
initial response by the California Department of Insurance ("Department") to the enactment of
provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-
Frank Act") relating to reinsurance transactions, in order to provide legal clarity on these matters
for the California insurance market.

Introduction

President Barack Obama signed the Dodd-Frank Act on July 21, 2010. Title V of the Dodd-
Frank Act includes, as a separate subtitle, the Nonadmitted and Reinsurance Reform Act
("NRRA"). Under its terms, the reinsurance provisions of the NRRA, § 531 et seq, will become
effective on July 21, 2011.

The NRRA requires that changes be made to the prevailing state-based system governing the
regulation of reinsurance. Under the NRRA no state may deny financial statement credit for
reinsurance, if the credit is recognized by the ceding insurer's state of domicile. It also provides
that the laws of nondomestic states, except those with respect to taxes and assessments on
insurance companies, are preempted to the extent they apply to reinsurance agreements. The
NRRA further provides that for a defined category of insurers principally engaged in the
business of reinsurance (hereafter "Professional Reinsurers"), the state of domicile shall be solely
responsible for regulating solvency. Finally, non-domestic states are specifically prohibited from
requiring Professional Reinsurers to provide financial information other than the financial
information required by their domiciliary states.

The NRRA limits its reinsurance preemption provisions to states that are accredited by the
National Association of Insurance Commissioners ("NAIC") or that meet requirements that are
"substantially similar" to the NAIC’s financial solvency requirements. Currently all states meet
this threshold requirement.
The Department intends to pursue any necessary legislation and regulations reconciling
California law to the reinsurance provisions of the NRRA in a deliberate and thorough manner,
with due consideration to developments at the NAIC and in sister states.

California Law

The Department has undertaken a review of the California Insurance Code ("CIC") and Title 10
§ 2303 of the California Code of Regulations ("CCR") to identify key provisions that regulate
admitted non-domestic insurers' reinsurance transactions or statutory financial statement credit
for ceded reinsurance. The Department acknowledges that this review may not be exhaustive.
With respect to any statutes or regulations not specifically addressed below, the Department
invites insurers to address any assertions of NRRA preemption to the Department, in writing, for
individual analysis.

Key Provisions

Commencing July 1, 2011, the effective date of this Bulletin, the Department intends to exercise
its regulatory discretion in the following manner:

1.     CIC § 717(d) and CIC § 700(c)

Sections 717 and 700(c) reference license requirements for domestic and foreign insurers that
operate in California on an admitted basis. Section 717(d) requires the Department to consider
an insurer’s reinsurance arrangements in deciding whether to grant or continue a certificate of
authority to transact insurance in California. Section 700(c), and its implementing regulation, 10
CCR § 2303.15(q), require an admitted insurer to continue to meet the requirements of CIC §
717. In considering reinsurance arrangements under these code Sections, the Department will
not deny financial statement credit for reinsurance that has been recognized by a ceding insurer’s
domestic state regulator.

2.     CIC § 922.6

Subdivision (b) of this statute, and the implementing regulation found at 10 CCR § 2303.10,
provide the Department discretion to disallow financial statement credit claimed by a non-
domestic insurer. The Department will not exercise that discretion for reinsurance that has been
recognized by a ceding insurer’s domestic state regulator. Therefore, the statutory statement
credit oversight authority contained in 10 CCR §§ 2303.3, 2303.11, 2303.12, 2303.13 and
2303.19 will be exercised only as regards domestic insurers, pursuant to the Department's
reserved discretion in 10 CCR § 2303.1.

3.     CIC § 1011

Subdivision (c) of this statute gives the Department discretion to conserve any insurer which has
entered into certain reinsurance transactions without obtaining the Department’s prior consent.
The subject reinsurance transactions are defined and the requirements set forth in 10 CCR §
2303.15 (c) through (f).) The Department will not exercise its discretion to conserve a non-

                                                2
domestic insurer for failure to obtain prior consent to such reinsurance transactions; and,
pursuant to its retained discretion in 10 CCR § 2303.1, the Department will not apply the related
regulations, 10 CCR § 2303.15 (c) through (f), to non-domestic insurers.

However, non-domestic insurers remain subject to the CIC § 1011(c) provisions regarding prior
consent to mergers, consolidations and sale transactions. And, all provisions of CIC § 1011(c)
and 10 CCR § 2303.15 remain applicable to domestic insurers.

4.     CIC § 1215.5(b)(3)

Under CIC § 1215.13, non-domestic insurers meeting the definition of "commercially domiciled
insurer" are generally made subject to compliance with the California Insurance Holding
Company System Regulatory Act ("HCA") as if they were California domestic insurers. Section
1215.5(b)(3) of the HCA in effect requires prior consent to reinsurance agreements or
modifications thereto among affiliated insurers in excess of specified thresholds.

Subdivision (b) of CIC § 1215.13 gives discretion to the California Insurance Commissioner
(“Commissioner”) to exempt commercially domiciled insurers from some or all of these
requirements under "circumstances that he or she deems appropriate." The Commissioner
intends to exercise that discretion and, commencing July 1, 2011, will deem commercially
domiciled insurers to be exempt from compliance with CIC § 1215.5(b)(3).

5.     10 CCR §§ 2303.11 and 2303.12

These Sections implement CIC § 922.3 and set forth risk transfer requirements to permit
statement credit for reinsurance. As explained in Paragraphs 1 and 2 above, the Department will
not deny financial statement credit for reinsurance that has been recognized by an insurer’s
domestic state regulator, and therefore these Sections will apply only to domestic insurers.

6.     10 CCR § 2303.14

This Section implements CIC § 717(d) and sets forth requirements for contract provisions in
reinsurance agreements for which statement credit is claimed, and, where an agreement is
nonconforming, gives the Commissioner discretion under specified circumstances to find that the
insurer’s reinsurance arrangements are materially deficient for purposes of CIC § 717 and 700(c).
The Commissioner will not exercise his discretion to make such a finding concerning the
reinsurance agreements of a non-domestic insurer.

7.     10 CCR § 2303.15

Subdivision (b) of this Section implements CIC § 717(d) and gives the Commissioner discretion
to find an insurer’s reinsurance arrangements materially deficient if the insurer does not retain at
least 10% of direct premium written per line of business ceded to a non-affiliate. The
Commissioner will not exercise his discretion to make such a finding concerning a non-domestic
insurer.

                                                 3
Subdivisions (e) and (f) of this Section implement CIC § 1011(c) and set forth requirements for
cessions of 75% or more of direct premium written. For the reasons explained in Paragraph 3 of
this Bulletin, Subdivisions (e) and (f) will be applied only to domestic insurers.

Subdivision (f) of this Section (to be applied only to domestic insurers) implements CIC §
1011(c) and conditions the Commissioner’s consent for a 100% cession of direct premium
written on prospective business to an inter-company pool upon the retrocession of an amount not
less than 10% of the direct written premium. Pursuant to the Department’s reserved discretion in
10 CCR § 2303.1, the Commissioner will not deny consent for a cession to an admitted affiliate
solely on the basis that the agreement does not include a retrocession to or retention by the
ceding insurer. As a result, 100% cessions to admitted affiliates will generally be permitted.

Subdivision (g) of this Section implements CIC § 730, which gives the Commissioner discretion
to require an examination of any scope or nature. Subdivision (g) is an expression of that
discretion and requires certain licensees to submit for prior review certain reinsurance
transactions which comprise 50% or more of the licensee’s premium or liabilities. Pursuant to
the Department's reserved discretion in 10 CCR § 2303.1, examination filings under Subdivision
(g) will no longer be required for any insurer.

Subdivision (i) of this Section implements CIC § 717(d) and gives the Commissioner discretion,
for agreements filed pursuant to Subdivisions (e) and (g), to require contract provisions as
necessary to protect the ceding insurer when specific collateral is not provided for the cession.
As explained in Paragraph 3 of this Bulletin, Subdivision (e) will apply only to domestics; and as
explained in this Paragraph 7, the Department will no longer require filings under Subdivision
(g). Therefore, Subdivision (i) will apply only to domestic insurers.

Subdivision (j) of this Section implements CIC § 1011(c) and states conditions for the
Commissioner’s consent to agreements filed under Subdivisions (e) and (g), where payments are
to be made through a reinsurance intermediary. As explained in Paragraph 3 of this Bulletin,
Subdivision (e) will apply only to domestics; and as explained in this Paragraph 7, the
Department will no longer require filings under Subdivision (g). Therefore, Subdivision (j) will
apply only to domestic insurers.

8.     10 CCR § 2303.19

This Section states the procedures applicable to a denial of statement credit. As explained in
Paragraphs 1 and 2 of this Bulletin, the Department will not deny financial statement credit for
reinsurance that has been recognized by an insurer’s domestic state regulator.

9.     10 CCR § 2303

The California Reinsurance Oversight Regulations include many provisions which are not
expressly applicable to financial statement credit or reinsurance agreements. Unless a provision
is modified by this Bulletin, the provision remains in effect as to all licensees.

                                                4
Bulletin Effective Date

This Bulletin shall be effective July 1, 2011. Reinsurance transactions executed prior to July 1,
2011 are subject to all CIC and CCR standards and prior approval requirements. Statement
credit for ceded reinsurance taken on a financial statement with an “as of” date on or before June
30, 2011 is subject to existing California law.

This Bulletin shall not preclude the acceptance and review of applications voluntarily submitted
by admitted, nondomestic insurers. Nothing in this Bulletin restricts the Department’s statutory
discretion to consider specific circumstances that may be presented.

Questions regarding this Bulletin may be directed to:

                              Arlene Joyce
                              Senior Staff Counsel
                              California Department of Insurance
                              45 Fremont Street, 24th Floor
                              San Francisco, California 94105
                              (415) 538-4424
                              JoyceA@insurance.ca.gov

                                             DAVE JONES
                                             Insurance Commissioner

                                                 ADAM M. COLE
                                                 General Counsel


Bulletin 2012-1: Export List

STATE OF CALIFORNIA
                            DEPARTMENT OF INSURANCE
                                45 FREMONT STREET
                             SAN FRANCISCO, CA 94105

                                                                 Bulletin No. 2012-1
                                                                 January 23, 2012

TO:    All Surplus Line Brokers, Admitted Insurers, and Other Interested Persons

SUBJECT: Export List.

Pursuant to Insurance Code Section 1763.1, the Commissioner may by order declare
eligible for placement with a nonadmitted insurer and exempt from all the requirements
of Section 1763, except the filing of a confidential written report, any type of insurance
coverage or risk for which he finds after a public hearing that there is not a reasonable
or adequate market among admitted insurers.

This year the Department held a public hearing and comment period regarding the
annual renewal of the list as required by the statute. There were no new items added
to the list.

The Department reminds you that risks and coverages not appearing on this list may
still be exportable but subject to the full documentation of the diligent search being
performed with respect to insurance issued to a home state insured as required by
Insurance Code Section 1763.

A public hearing will be held annually or more often at the Commissioner's discretion
regarding the attached export list. The Commissioner or his designee shall notify all
surplus line brokers of any removal from the list. The contact person is
Carol Frair, Senior Staff Counsel, Department of Insurance, 45 Fremont Street, San
Francisco, CA 94105, (415) 538-4408.

                                 DAVE JONES
                                 Insurance Commissioner

                              By~~
                              Nettie Hoge, Chief of Staff
         EXPORT LIST 2012

Automobile
Exotic/Classic/Antique Autos With a Value in Excess of
 $100,000

Aviation
Aviation Excess Liability
Short Term Media/Entertainment Non-Owned Contingent Aircraft Liability
       (Film/Entertainment Productions)

Crime
Excess Crime
Kidnap,& Ransom

Disability
Bridge Plan*
High Limits Disability**
International Major Medical

Event Coverage
Event Cancellation

Fire & Allied Lines
Amusement Parks/Carnivals and Amusement Devices
Commercial DIC/Stand Alone Earthquake
Disaster Income Protection
Excess Flood
Explosive Manufacturing/Sales/Storage
Hay in the Open
Homeowners Earthquake-Excess Limits or Deductible Buyback
Individual Insureds With Large Schedules Where the TIV(Total
  Insured Values)Are in Excess Of $500 million
Sawmills
Vacant Buildings

General Liability
Ambulance Service Including Professional Liability
Amusement Parks/Carnivals/Devices
Blasting Contractors
Building Moving
Contractors Engaged In Construction of New Tract Homes
 And/Or New Condominiums
Clinical and Similqr Tests of Pharmaceutical, Medical, Biological and Other
 Similar Products
        Crane and Rigging Contractors
        Demolition Contractors
        Employment Practices Liability
        Environmental Impairment Remediation and Pollution Liability
        Excess Liability Where Part of Underlying Is Nonadmitted
        Explosives Including Manufacturing/Sales/Storage
        Fireworks Displays
        Foster Family(occurrence based only)
        Hot Air Balloon
        Limits That Attach In Excess of $150 Million
        Oilfield Contractors
        Outfitters & Guides
        Patent/Trademark/Copyright Infringement
        Products/Completed Operations (written on a stand alone basis)
        Products Recall
        Security Guard Services
        Seasonal or Mobile, Concessionaires, Vendors and Fairs, with or without
         Liquor Liability
        Short Term Special Event(excluding hole-in-one-coverage)
        Tattoo and Body Piercing Shops

        Inland Marine
        All vessels in excess of 30 feet and rated with a maximum speed
          of 45 mph
        Any vessel with a Maximum Rated Speed in Excess of 55 mph
        Excess Motor Truck Cargo
        Personal Articles Floaters Written On a Stand Alone Basis where the value of
         the schedule is in excess in of $1,000,000 or contains a single item(s) over
         $100,000

        Political
        Political Risks lnciuding Expropriation, Confiscation, Unfair Calling

        Prize
        Prize Indemnification (excluding hole-in-one-coverage)

        Professional Liability
        Architects & Engineers/Condo coverage only
        Campaign Treasl!.rers
        Creditors' Committees
        Tattoo and Body Piercing Shops

        Railroad
        Short Term Media/Entertainment Railroad Protective Liability (Film/Entertainment
           Productions)

#716160v1
        Miscellaneous
        Short Term Media/Entertainment Failure to Survive Coverage for $5 million and
           over (Film/Entertainment Productions)

        The items in bold:are headings only and not export items in and of themselves.

        *The Bridge Plan ·covers- 65 year old people who must wait a certain period
        before they can enroll in Medicare. These people either 1) failed to meet the
        residency requirement of Medicare and must wait 5 years to meet the res·idency
        requirement or 2) failed to enroll during the proper Medicare enrollment period
        and now must wait a brief period before they are eligible to enroll.

        **High Limits Disability is coverage that offers benefit amounts over the admitted
        market maximum issue and participation limits and/or includes occupations
        which are not eligible through the admitted markets.

#716160v1


OIR-23-05M

floir.gov self-hosted-gov; gate-zero FL-a

INFORMATIONAL MEMORANDUM
                                                  OIR-23-05M
                                                    ISSUED
                                                  August 28, 2023
                                               Florida Office of Insurance Regulation
                                                Michael Yaworsky, Commissioner

         NOTIFICATION TO ALL AUTHORIZED RESIDENTIAL PROPERTY INSURERS

                    ~ Guidance for Tropical Storm Idalia Preparedness and Response ~

As Tropical Storm Idalia approaches the State of Florida, the Florida Office of Insurance Regulation
(OIR) is issuing this Informational Memorandum to all authorized residential property insurers to
provide guidance on hurricane preparedness and response. Insurers are directed to review all aspects of
their disaster preparedness and response plans to ensure they are in compliance with Florida law.

Additionally, OIR expects insurers to be prepared to implement their claims-handling manuals which
meet the requirements of the Florida Insurance Code and meet minimum, usual and customary industry
claims-handling practices. Insurers were required to attest that it maintains adequate resources available
to implement the requirements of its claims-handling manuals at all times, including during natural
disasters and catastrophic events. More information regarding claims-handling manual attestations can
be found here.

Additional information regarding consumer protection legislation signed by Governor DeSantis to
support Florida policyholders when disaster strikes is available here.

Insurance Commissioner Michael Yaworsky and OIR continue to monitor Tropical Storm Idalia’s
projected path and will issue updates to authorized insurers as more information becomes available.

                                            Claims Handling

Insurers are directed to consider all aspects of claims handling within their hurricane preparedness plans
to ensure continuous operation, offer sufficient claims adjustment staff, and provide effective consumer
service resources for policyholders. Section 627.70131(1)(d), F.S., authorizes insurers to use electronic
methods to investigate the loss that is reported in a claim. Insurers are encouraged to use all available
resources to effectively facilitate the claims process for consumers. Methods that may be used include,
but are not limited to:

   •   Electronic photographs;
   •   Video recordings of the loss;

                                               Page 1 of 3
   •   Video conferencing between the adjuster and the policyholder which includes video recording of
       the loss; and
   •   Video recordings or photographs of the loss using a drone, driverless vehicle, or other machine
       that can move independently or through remote control.

An insurer may allow the policyholder to use such electronic methods to assist in the investigation of the
claim. An insurer may assign a licensed adjuster to physically inspect the property even if electronic
methods are used to investigate the loss.

Insurers’ claim handling practices should not only comply with required provisions of Florida law, but
also do everything possible to respond to the needs of affected Floridians, restore a sense of normalcy,
and facilitate restoration and recovery in impacted communities. Policyholders have the right to expect
prompt, efficient, and fair claims adjustment service, especially after a catastrophic loss. Insurers are
encouraged to be responsive to their policyholders and communicate with them throughout the claims
process.

                                          Maintaining Records

Insurers should be prepared to maintain records related to a policyholder's claim in accordance with
applicable Florida Laws. Section 627.70131(4)(b), F.S., requires insurers to maintain the following
records, including:

   •   Any claim-related communication made between the insurer and the policyholder or the
       policyholder’s representative;
   •   The insurer’s receipt of the policyholder’s proof-of-loss statement;
   •   Any claim-related request for information made by the insurer to the policyholder or the
       policyholder’s representative;
   •   Any claim-related inspection of the property made by the insurer;
   •   Any detailed estimate of the amount of the loss generated by the insurer’s adjuster;
   •   The beginning and end of any tolling period; and
   •   The insurer’s payment or denial of the claim.

                                                  Fines

OIR will use the fullest extent of its regulatory authority to ensure policyholders are protected. Section
624.4211(1), F.S., provides that if OIR finds that one or more grounds exist for the discretionary
revocation or suspension of a certificate or authority issued under Chapter 624, OIR may, in lieu of such
revocation or suspension, impose a fine upon the insurer. Upon examination, a violation of the Florida
Insurance Code could result in any of the following:

   •   For nonwillful violations, OIR may issue fines up to $25,000 per violation, up to an
       aggregate amount of $100,000 for all nonwillful violations arising out of the same action, related
       to a covered loss or claim caused by an emergency for which the Governor declared a state of
       emergency pursuant to s. 252.36, F.S.
   •   For all other nonwillful violations arising out of the same action, OIR may issue fines up to
       $12,500 per violation, up to an aggregate amount of $50,000.

                                               Page 2 of 3
   •   For knowing and willful violations of a lawful order or rule of the office or commission or a
       provision of this code, OIR may impose a fine upon the insurer up to $200,000 for each such
       violation, up to an aggregate amount of $1 million for violations arising out of the same action,
       related to a covered loss or claim caused by an emergency for which the Governor declared a
       state of emergency pursuant to s. 252.36, F.S.
   •   For all other knowing and willful violations arising out of the same action, OIR may issue fines
       up to $100,000 per violation, up to an aggregate amount of $500,000.

OIR’s primary concern is that consumers’ issues are properly and timely resolved. Communication is a
critical part of the claims process, and consumers have the right to expect consistent and accurate
information be provided to them as they navigate one of the toughest times in their lives - recovery from
a major catastrophic event. Insurers are directed to use every channel available to them to communicate
with their policyholders to share information and resources during the claims handling process.

If you have questions regarding this memorandum, please contact OIR
at InformationalMemoranda@floir.com.

                                               Page 3 of 3


OIR-16-07M

INFORMATIONAL MEMORANDUM
                                         OIR-16-07M
                                           ISSUED
                                        October 3, 2016
                                      Florida Office of Insurance Regulation
                                         David Altmaier, Commissioner

      To Residential Property Insurers in the State of Florida
 Deductible Applicable to Tropical Storm/Hurricane Hermine Claims

The purpose of this informational memorandum is to remind property insurers that
Tropical Storm/Hurricane Hermine was not declared a hurricane by the National
Hurricane Center of the National Weather Service until Thursday, September 1,
2016, at 1:55 P.M. CDT.

Before Thursday, September 1, 2016, at 1:55 P.M. CDT, Tropical Storm/Hurricane
Hermine was classified as a Tropical Storm. Section 627.4025(2)(a), Florida
Statutes, specifically defines “hurricane coverage” as coverage for loss or
damage caused by the peril of windstorm during a hurricane. Furthermore, (2)(b)
provides “Windstorm” for purposes of paragraph (a) means wind, wind gusts, hail,
rain, tornadoes, or cyclones caused by or resulting from a hurricane which results
in direct physical loss or damage to property and 2(c) defines “Hurricane” for the
purposes of paragraphs (a) and (b) as a storm system that has been declared to be a
hurricane by the National Hurricane Center of the National Weather Service.

Insurers are hereby notified that the hurricane deductible shall not apply to
property losses associated with a Hurricane Hermine damage claim that occurred
prior to Thursday, September 1, 2016, at 1:55 P.M. CDT nor after Monday,
September 5, 2016, at 5:00 A.M. EDT, which is 72 hours following the last
hurricane watch or warning issued for Hermine by the National Hurricane Center.
For these property losses, all insurers must apply the deductible that is unrelated
to hurricane, generally referred to as the “all other perils deductible” or “other
than hurricane deductible.” An insurer that fails to apply the appropriate
deductible is subject to administrative action.

To view information regarding deductibles and other important insurance related
matters, please visit http://www.floir.com/.

If you have any questions regarding this memorandum, please contact Robert
Ridenour, Director of Property and Casualty Financial Oversight, Florida Office of
Insurance Regulation at robert.ridenour@floir.com or 850-413-5227


OIR-16-06M

INFORMATIONAL MEMORANDUM
                                             OIR-16-06M
                                                ISSUED
                                           September 1, 2016
                                          Florida Office of Insurance Regulation
                                             David Altmaier, Commissioner

To All Health Maintenance Organizations (HMOs) participating in the Statewide Medicaid
Managed Care Program Managed Medical Assistance Program (MMA)

The purpose of this memorandum is to provide HMOs with accounting guidance with regard to
receivables owed to a HMO participating in MMA.

In April 2016, the Agency for Health Care Administration (AHCA) informed certain insured plans
that it identified a mismatch between certain Medicaid aid categories and the rate cells to which
they were assigned. The mismatch led to AHCA paying Temporary Assistance for Needy Families
(TANF) rates for certain persons—particularly MEDS-AD recipients over age 55—when it should
have paid Supplemental Security Income (SSI) rates. It began at the outset of the program in May
2014, due to programming that occurred in 2013.

AHCA indicated it is pursuing all necessary authorities to pay all monies owed to participants.

Accounting Guidance:

SSAP No. 84, Paragraph 23, discusses accounting treatment for amounts received under
government issued plans, including amounts over 90 days due. Paragraph 23 states in part as
follows:

       Amounts receivable under government insured plans, including amounts over 90
       days due, that qualify as accident and health contracts in accordance with SSAP No.
       50 – Classifications of Insurance or Managed Care Contracts shall be admitted
       assets. Amounts receivable under government insured plans include but are not
       limited to receivables under Medicare, Medicaid and similarly funded government
       insured plans. Evaluation of the collectability of amounts receivable under
       government insured plans shall be made periodically. If in accordance with SSAP
       No. 5R, it is probable the balance is uncollectible, any uncollectible receivable shall
       be written off and charged to income in the period the determination is made. . . .

SSAP Number 5R, Paragraph 6, Subparagraph a., defines probable as “[t]he future event or events
are likely to occur.”

Beginning with the June 30, 2016, quarterly financial statement and until such time as final
determination is made by AHCA, SSAP No. 84, Paragraph 23, and the following accounting
treatment should be utilized to report the reimbursement payment on financial statements:
      Receivable amounts shall be reported as an admitted asset on the Asset page, line 25-
       Aggregate write-ins for other than invested assets. The description of “Medicaid
       Underpayment” should be provided in the Details of Write-Ins section.
      A disclosure shall be provided in Notes to Financial Statements, Note 28 – Health Care
       Receivables. Companies shall provide a detailed explanation of the Medicaid
       Underpayment as well as including the number of persons affected in its plan.

In order for amounts reported as “Medicaid Underpayment” to be considered an admitted asset,
HMOs are required to provide supporting documentation to the Office of Insurance Regulation
with each financial statement filing that demonstrates amounts owed from AHCA.

Evaluation of the collectability of amounts receivable related to the mismatch shall be made
periodically. If at any time in the future, the receivable amounts are found to be uncollectible in
accordance with SSAP No. 5R, companies will be required to write off any uncollectible
receivable and charge to income in the period the determination is made.

Questions concerning this memorandum may be directed to:

Carolyn Morgan
Director, Life & Health Financial Oversight
850-413-5233
carolyn.morgan@floir.com


OIR-17-02M

INFORMATIONAL
                                                         MEMORANDUM
                                                           OIR-17-02M
                                                              ISSUED
                                                          October 19, 2017
                                                 Florida Office of Insurance Regulation
                                                    David Altmaier, Commissioner

   TO ALL PROPERTY AND CASUALTY INSURERS AUTHORIZED TO DO
                     BUSINESS IN FLORIDA

                   2016 PROFIT AND CONTINGENCY FACTORS

Pursuant to Rule 69O-170.003, Florida Administrative Code, the Office of Insurance Regulation
annually establishes underwriting profit and contingency factors that may be used in rate filings.
Insurers may use the profit and contingency factors referenced below when they are unable to
produce credible profit and contingency factors from their own data.

       LINE OF BUSINESS                                                           2016 FACTOR
       ALLIED LINES                                                                  3.8%
       BOILER & MACHINERY                                                            2.1%
       BURGLARY & THEFT                                                              4.0%
       COMMERCIAL AUTO LIABILITY                                                     0.6%
       COMMERCIAL AUTO PHYSICAL DAMAGE                                               4.9%
       COMMERCIAL MULTIPLE PERIL (BUSINESS OWNERS)                                   1.8%
       CREDIT                                                                        3.9%
       EARTHQUAKE                                                                    3.7%
       FARMOWNERS                                                                    4.2%
       FIDELITY                                                                      2.3%
       FINANCIAL GUARANTY                                                            5.0%
       FIRE                                                                          3.8%
       HOMEOWNERS                                                                    4.2%
       INLAND MARINE                                                                 3.8%
       MEDICAL MALPRACTICE - CLAIMS MADE                                            -2.8%
       MEDICAL MALPRACTICE - OCCURRENCE                                             -7.9%
       MORTGAGE GUARANTY                                                             0.8%
       OTHER LIABILITY - CLAIMS MADE                                                -3.3%
       OTHER LIABILITY - OCCURRENCE                                                 -4.3%
       PRODUCTS LIABILITY - CLAIMS MADE                                             -8.2%
       PRODUCTS LIABILITY - OCCURRENCE                                              -6.3%
       SURETY                                                                        3.3%

If you have questions regarding this memorandum, please contact Joe Boor, Actuary, Property and
Casualty Product Review, Florida Office of Insurance Regulation at Joe.Boor@floir.com or (850)
413-5330.