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Certificates of Insurance Law

certificate of insurance lawThe Massachusetts Division of Insurance (DOI) issued a bulletin to provide guidance on the implementation of Massachusetts General Laws Chapter 175L, concerning the issuance of certificates of insurance.

Chapter 175L was signed into law on Jan. 7, 2015, by then-Gov. Deval Patrick and became effective on April 7, 2015. The DOI stated in its bulletin 2015-02 on May 8 that the purpose of this new law is to regulate and standardize the practice of using certificates of insurance.

Chapter 175L defines a certificate of insurance as “a document or instrument, regardless of how titled or described, that is prepared or issued by an insurer or insurance producer as evidence of property or casualty insurance coverage.” The bulletin notes that the term shall not include a policy of insurance, insurance binder, policy endorsement or automobile insurance identification or information card. Chapter 175L explicitly regulates certificates of insurance for the first time in Massachusetts.

The new law codifies the long-time rule that insurance certificates may not modify the terms or conditions of the underlying insurance policies that they evidence. In this regard, Chapter 175L requires that all certificates of insurance must be both true and accurately reflect the policy they represent, and mandates that no one may knowingly prepare, issue or require the issuance of a certificate of insurance that contains any false or misleading information or that alters, amends or extends the coverage provided by the underlying referenced policy.

The new law applies to all certificates issued in connection with property, operations or risks located in Massachusetts, regardless of where the certificate holder, policyholder, insurer, or insurance agent is located.

The bulletin further stated that a certificate of insurance that violates the requirement of Chapter 175L will be deemed to be null and void. Under the law, the insurance commissioner is authorized to examine and investigate the activities of any person that the commissioner reasonably believes has been or currently is engaged in an act prohibited by Chapter 175L. Additionally, Chapter 175L grants the commissioner the authority to enforce the law by imposing a fine of up to $500 per violation.

Key provisions of Chapter 175L are as follows:

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Study: Opioid-Related Deaths Cut by 25% in Medical Marijuana States

Medical Marijuana InsuranceOpioid-Related Deaths Cut by 25% in Medical Marijuana States according to a new multi-institutional study, published in JAMA Internal Medicine and led by researchers at the Perelman School of Medicine at the University of Pennsylvania, which examined the rate of deaths caused by opioid overdoses between 1999 and 2010. Results reveal that on average, the 13 states allowing the use of medical marijuana had a 24.8 percent lower annual opioid overdose mortality rate after the laws were enacted than states without the laws, indicating that the alternative treatment may be safer for patients suffering from chronic pain related to cancer and other conditions.

Opioid analgesics, such as OxyContin, Percocet and Vicodin, are prescribed for moderate to severe pain, and work by suppressing a person’s perception of pain. Approximately 60 percent of all deaths resulting from opioid analgesic overdoses occur in patients who have legitimate prescriptions. Additionally, the proportion of patients in the United States who are prescribed opioids for non-cancer pain has almost doubled over the past decade, indicating the need to do a more focused examination on the safety and efficacy of these and other treatment options. In states allowing the use of medical cannabis, the drugs may be prescribed as an alternative to opioids.
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Report: New Emerging Risks

Report New Emerging RisksSwiss Re has released a report – ”New emerging risk insights,” which is based on the reinsurer’s SONAR process, described as a “unique tool which uses Swiss Re’s internal risk management expertise to observe and evaluate new and emerging risks.”

Some of the other emerging risks examined in the SONAR report includes the following:

  • Cloud computing security
  • Contagious emerging market crisis
  • Eurozone crisis leading to deflation
  • Short-termism of macro-policy measures
  • Air pollution as mortality driver
  • Concussion crisis in sports
  • Democratisation of genetic testing
  • Digital slander
  • E-cigarettes
  • Financial consumer protection regulation
  • From closed to open business models
  • Food and water safety: trade-offs with growthRead More »Report: New Emerging Risks

Soft Insurance Rate Landing

U.S. property/casualty insurers’ and brokers’ operating earnings are expected to modestly improve in 2014, and the overall insurance rate increases will “probably moderate into 2015,” said investment and research firm Keefe, Bruyette & Woods (KBW) in its new report.

According to the report, the returns are no longer either poor enough to sustain the recent pace of insurance pricing improvement or rich enough to stimulate meaningful rate softness outside of a few lines. KBW published its report, titled “2014 Outlook: Prepare for a Soft Insurance Rate Landing,” on Dec. 10.

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Coverage options for your barber and beauty business

Beauty Salon Parlor InsuranceCoverage for barber and beauticians professional liability is automatically included for your “employees” under the commercial general liability coverage form. We have the ability to provide professional liability coverage for barbers and beauticians that are independent contractors – this optional coverage is available for $25 per independent operator under the Additional Insured-Independent Operators form -CG T567 (11-03).

The form does require each operator be scheduled. For additional information, contact us via email or call 877-239-0067

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Faulty Workmanship Coverage Endorsement

What is the Faulty Workmanship Coverage Endorsement? Contractors Faulty Workmanship Coverage is a new and unique endorsement that provides a $10,000 limit to protect your clients against claims arising out of faulty workmanship, materials or products. These claims would otherwise be excluded by the “business risk” exclusions found in every standard ISO Commercial General Liability policy. In states that require a contractors license bond, claims arising out of faulty workmanship, materials or products may also be made against the contractor’s license bond. If the bonding company pays any such claim, the contractor must repay the bonding company. The contractor’s failure… Read More »Faulty Workmanship Coverage Endorsement

FEMA National Preparedness Report 2013

Presidential Policy Directive 8: National Preparedness, requires an annual National Preparedness Report (NPR) that summarizes national progress in building, sustaining and delivering the 31 core capabilities outlined in the National Preparedness Goal. The 2012 NPR highlighted preparedness accomplishments in the decade since the September 11, 2001 attacks and the 2013 NPR focuses on accomplishments either achieved or reported on during 2012. The 2013 NPR presents an opportunity to reflect on the progress that whole community partners—including all levels of government, private and nonprofit sectors, faith-based organizations, communities and individuals—have made in strengthening national preparedness and to identify where preparedness gaps… Read More »FEMA National Preparedness Report 2013

No-Fault Auto Insurance Reform

According to a recent statewide poll commissioned by the Coalition for Auto Insurance Reform (CAIR), an overwhelming number of Michigan voters believe their auto insurance premiums are too high and support no-fault reform legislation that would lower their auto insurance costs. The poll revealed that voters are concerned about the high cost auto insurance – 70 percent said their auto insurance premiums were too high. The belief that auto insurance rates are too high is shared by voters across all age groups, political parties and beliefs, especially among the following demographics: 88 percent of Detroiters 75 percent blue collar workers… Read More »No-Fault Auto Insurance Reform

2013 Hurricane Prediction

The Colorado State University team is predicting an above-average 2013 Atlantic basin hurricane season with 18 named storms and a 72 percent chance one will make landfall somewhere along the entire Eastern seaboard. Nine of those 18 named storms are expected to become hurricanes and four of those major hurricanes (Saffir/Simpson category 3-4-5) with sustained winds of 111 mph or greater. The activity will be due primarily to anomalous warming of the tropical Atlantic and expected lack of an El Nino event, the researchers said. The hurricane forecast team’s probabilities for a major hurricane making landfall on U.S. soil in… Read More »2013 Hurricane Prediction

Workers Comp. Requirements in North Carolina

Workers’ compensation insurance is required in all 50 states, and North Carolina law requires businesses with three or more employees to buy insurance to cover expenses related to workplace injuries. The North Carolina Industrial Commission is tasked with administering the Workers’ Compensation Act. Despite the statutory requirements, an April 2012 Raleigh News & Observer investigation revealed that at least 30,000 North Carolina businesses are not providing the required workers’ comp coverage required. Employee misclassification and the misuse of workers’ comp ghost policies have become topics of concern among state regulators, government officials, the business community and the public. So-called “ghost” policies are… Read More »Workers Comp. Requirements in North Carolina