Zoning In - Summer 2026
Northeast Zone
Connecticut
Effective October 1, 2026, HB 5373 amends agent termination reporting requirements under § 38a-708. The newly added provision addresses termination for cause: “If a company terminates an agent's appointment for cause, such termination shall be reported to the commissioner not later than thirty calendar days after such termination.”
Maryland
Bulletin 26-19, dated July 13, 2026, reminds insurers and other carriers about the requirement of including interest in restitution payments. The Bulletin references Section 4-113(d)(2) of the Insurance Article that addresses required interest and further notes that “there are statutes that provide for specific interest amounts, such as § 15-1005, but when an amount is not specified in statute, the interest shall be paid in the amount of six percent per annum, in accordance with MD Constitution Art. 3, § 57. Interest accrues from the date of a violation of the law to the date that payment is issued.”
New York
The Department of Financial Services (“DFS”) recently published its “Premium Change Explanations (Section 2356)” notice which includes the following summary of some key provisions in the new law which is effective August 24, 2026.
Section 2356(a) requires authorized insurers to provide a notice accompanying a premium bill that includes the amount of the premium increase from the prior policy period and a written explanation for the premium increase, including the primary rating factors causing the premium increase, when the total premium increase is more than 10% (exclusive of any premium increase due to insured value added) for a policy covering a private passenger automobile policy, including motorcycles and motorhomes, and a policy covering real property used predominantly for residential purposes that consists of not more than four dwelling units, other than hotels and motels.
Section 2356(b)(1) requires that for policies covering motor vehicles and real property used predominantly for residential, an authorized insurer must include a prominent notice accompanying the premium bill that states that “Policyholders receiving an increase to their premiums at renewal may request a written explanation, including the primary rating factors causing the increase, by contacting their insurers in writing” and must provide the insurer's contact information. This provision does not apply when a notice is provided pursuant to subsection (a).
Section 2356(b)(2) states that upon a policyholder's written request at policy renewal, an authorized insurer must provide a written explanation for the increased premiums, including the primary rating factors causing the increase, for a policy described in subsection (b)(1), within 20 days of such request.
Section 2356(c) gives examples of primary rating factors, such as individual claims history, policy changes, anticipated losses in the rating territory, and increased claims costs.
Section 2356(d) requires an authorized insurer that reduces premiums for private passenger automobile insurance, including insurance for motorcycles and motorhomes, due to the reforms of the 2026-2027 state fiscal year budget, to give notice to the policyholder of the rate reduction and indicate that the reduction is due to the budget reforms.
Additionally, the notice provides answers to industry questions about “Premium Change Explanations” addressed in Section 2356 and indicates that the “DFS will monitor compliance with Insurance Law Section 2356 as part of its market conduct examinations and data collection processes and may provide additional guidance in the future.”
Rhode Island
HB 7520, effective April 1, 2027, addresses uninsured and underinsured motorist coverage. Section 27-7-2.1 is amended by adding a new subsection (c) as follows: “An insurer shall offer for purchase underinsured motorist property damage coverage for private passenger automobiles. Underinsured motorist property damage coverage may be offered together with uninsured motorist property damage coverage. No insured shall be obligated to purchase underinsured motorist property damage coverage, but any insured without collision coverage shall have the option to reject underinsured motorist property damage coverage in writing.”
Southeast Zone
Kentucky
Bulletin 2026-04, dated July 20, 2026, provides information regarding the requirements of HB 627 which amends KRS 304.39-130 by raising the basic reparation benefits payable for work loss, survivor's economic loss, replacement services loss, and survivor's replacement services loss from $200 to $500 per week. This amendment became effective July 15, 2026. The Department of Insurance indicates it is pursuing an amendment to 806 KAR 39:030 to update the Kentucky No-Fault Rejection Form. However, in the interim, the Department has provided an updated Kentucky No-Fault Rejection Form as an attachment to this Bulletin. The Department encourages all insurers issuing auto insurance in Kentucky to use the “updated form until 806 KAR 39:030 is formally amended through regulation promulgation process, to ensure compliance with HB 627. Insurers, licensees, and registered entities are charged with notifying their agents and employees of the provisions of HB 627, the amendment to KRS 304.39-130, and the recommended use of the updated form.”
Tennessee
SB 1667 revises the “motor vehicle financial responsibility and enforcement framework by increasing penalties for insurance noncompliance, expanding insurer reporting and verification requirements, conditioning certain civil damage recoveries on compliance with insurance laws, and authorizing limited data collection and public awareness measures.” Newly enacted Section 56-1-111 requires the Department to conduct semiannual data calls to insurers authorized to write automobile liability insurance in Tennessee, requesting aggregated data on automobile liability policies cancelled within sixty days of issuance due to policyholder request or nonpayment of premium from January 1, 2027, through December 31, 2028.
Midwest Zone
Indiana
The Indiana Department of Insurance has issued Bulletin 279 “Reporting of Ownership Information – Second Notice” dated June 26, 2026. This bulletin is directed to “all insurers, third party administrators (“TPAs”), and pharmacy benefit managers (“PBMs”), as defined in Public Law 239-2025 (HEA 1666), doing business in Indiana. The purpose of this bulletin is to notify insurers, TPAs, and PBMs of new reporting requirements set forth in Pub. L. 239-2025.” Beginning July 1, 2025, and each July 1 thereafter, each insurer, TPA, and PBM doing business in Indiana shall file with the Department a report that includes the information outlined in this Bulletin.
Michigan
Bulletin 2026-20-INS, issued July 29, 2026, sets forth the “Annual Adjustment of the Maximum Work Loss Benefit and Survivors’ Loss Benefits Payable Under Policies of Personal Protection Insurance,” superseding Bulletin 2025-18-INS. As indicated in the Bulletin, “each adjustment is to be effective on October 1 of that year and is to apply only to benefits arising out of accidents occurring after the date of change in the maximum. Accordingly, the new work loss and survivors’ loss benefit payable, effective October 1, 2026, through September 30, 2027, shall not exceed $7,455 per single 30-day period. This maximum shall apply pro rata to any lesser period of work loss. The maximum work loss and survivors’ loss benefits per single 30-day period for recent years are as follows: October 1, 2025, through September 30, 2026 ---- $7,201 October 1, 2024, through September 30, 2025 ---- $7,014 October 1, 2023, through September 30, 2024 ---- $6,811.”
Oklahoma
Bulletin No. 2026-02, dated July 26, 2026, provides summaries of the Department’s rule changes for 2026. The rule change summaries are included below, with details provided in the Bulletin.
Property and Casualty – Chapter 15: The change made to Chapter 15 increases the timeframe for notification from an insurer to a policyholder regarding the non-renewal of a homeowners insurance policy or any other personal residential insurance coverage.
Other Licensees – Chapter 25: The amendments to Chapter 25 remove outdated provisions related to a discontinued long-term care insurance program and modernize the Department’s redomestication and insurance holding company filing requirements.
Health Maintenance Organizations (“HMOs”) – Chapter 40: The amendments to Chapter 40 modernize the filing requirements applicable to health maintenance organizations and remove forms from the regulatory appendices. Applicable HMO filing templates and instructions, including HMO Forms A and B, will instead be maintained and published on the Oklahoma Insurance Department website.
Western Zone
Idaho
Bulletin No. 26-12, dated July 29, 2026, advises insurers of the revised policyholder notice periods for nonrenewals and cancellations of policies subject to Idaho Code §§ 41-1842 and 41-2401, as enacted by HB 562 (2026). These revised notice periods apply to policies issued or renewed with an effective date of issuance or renewal on or after January 1, 2027 and insurers must file conforming forms with the Department before January 1, 2027.
Commercial property, commercial liability, and commercial multiperil policies subject to § 41-1842, the notice period for nonrenewal is sixty (60) days before the expiration date, and the notice period for a for-cause cancellation under § 41-1842(3)(a)(ii) through (vii) is sixty (60) days.
Standard fire policies subject to § 41-2401, which include all personal homeowners, dwelling fire, and renters’ coverage, the notice period for nonrenewal or cancellation is sixty (60) days. The ten (10) day notice period for cancellation due to nonpayment of premium is unchanged. Also added to § 41-2401 is a notice-content requirement: both the sixty (60) day nonrenewal notice and the sixty (60) day cancellation notice must be accompanied by a statement of the reason for the nonrenewal or cancellation. The Department interprets this requirement to mean that the stated reason must identify the specific basis for the company's decision with enough particularity to inform the policyholder why the action is being taken. A general reference to underwriting or company guidelines, without more detail, does not satisfy this requirement.
Bulletin No. 26-13, dated July 29, 2026, provides the “Rate of Interest on Deferred Payment of Cash Surrendered Benefits” effective July 1, 2026. “Effective July 1, 2026, insurers must pay a minimum interest rate of 8.875% on deferred payment of cash surrender values, pursuant to Idaho Code §§ 41-1927(3) and 41-1927A(3)(b). The interest rate is calculated annually by the Idaho State Treasurer, in accordance with Idaho Code § 28-22-104(2), and is effective July 1, 2026, through June 30, 2027.”
Nevada
Bulletin 2026-002, dated July 9, 2026, addresses concerns regarding how insurers are conducting property inspections for new homeowner policy business. The Nevada Division of Insurance references an increase in reports of insurers canceling newly issued homeowner policies within the first 70 days of inception based on their property inspection results, with those cancellations often occurring late in the 70-day underwriting period. The Division further reminds all insurers that “their practices must comply with Nevada's statutes pertaining to unfair trade practices, including the provisions of NRS 686A.020. Insurers must ensure that their underwriting and inspection processes are conducted in a manner that is fair, transparent, and not misleading to consumers.” Specific guidance on conducting property inspections for new Homeowner policy business is as follows:
Insurers should conduct property inspections prior to binding coverage whenever practicable
If a pre-binding inspection is not feasible, inspections should be completed within a very short period after binding.
Insurers should avoid relying on inspections conducted late in the 70-day underwriting period as the basis for cancellation unless newly discovered information could not reasonably have been obtained earlier.
Written communications to applicants and policyholders should clearly explain any pending inspection requirements and the potential implications of the inspection results.
Insurers should review and, where appropriate, revise their underwriting workflows to ensure that inspection timing does not create avoidable consumer harm.
Oregon
Bulletin No. DFR 2026-5, dated July 14, 2026, addresses Paid Leave Oregon as an “Other Benefit” that reduces short-term disability benefits and provides updated guidance on the Division of Financial Regulation's (“DFR”) expectations of insurers who write Short Term Disability (“STD”) policies. Specific Guidance for insurers in the Bulletin includes: If the terms of an STD policy allow the insurer to reduce STD benefits due in any part to the availability of Paid Leave Oregon benefits, all plan documents must clearly and conspicuously inform consumers that:
The consumer might be eligible for leave benefits under the Paid Leave Oregon program;
The consumer is not required to apply for or accept Paid Leave Oregon benefits in order to receive STD benefits;
If a consumer does not apply for Paid Leave Oregon, the insurer may estimate a consumer's Paid Leave Oregon benefit amount; and
The insurer will reduce the consumer's STD benefits on account of Paid Leave Oregon benefits received or eligible to be received by the consumer.
The Bulletin further reminds insurers that effective September 1, 2026, “insurers must submit updated plan documents for DFR approval within 18 months of this bulletin's date or at renewal, whichever is earlier. Alternatively, when appropriate, insurers may file an endorsement notice included with their renewal. Further, DFR expects all insurers to continue to offer actuarially sound rates that factor all reductions in STD benefits, including those made to account for availability of Paid Leave Oregon benefits.”
Kathy Donovan is Senior Compliance Counsel, Insurance with Wolters Kluwer Financial Services. Kathy has more than two decades of experience in insurance compliance. Her expert commentary on legal and regulatory issues affecting the insurance industry is widely published, and she is a regular presenter at various industry events.
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