News & Notes

DELAWARE CRAB FEAST

Thank you to everyone who attended IA&B's Crab Feast in Smyrna, DE. The annual event has become a Delaware insurance community tradition – and certainly one of our favorites!

MARYLAND’S NEW EIUM OPT-OUT FORM

The new Enhanced Underinsured Motorist (EUIM) selection form will be required for all new personal auto policies in Maryland, effective July 1, 2024. The Maryland Insurance Administration created the form due to the passage of House Bill 128 earlier this year, which establishes EUIM as an opt-out coverage for automobile policies.

During the legislative session, IA&B vigorously lobbied against the passage of HB 128 but was ultimately unsuccessful. However, we did secure two amendments that limit its scope:

▲ The new EUIM requirement only applies to new business issued on or after July 1, 2024. Policy renewals are unaffected.

▲ The requirement will sunset on June 30, 2029, at which point EUIM will return to being an opt-in coverage.

In July, IA&B submitted comments to the MIA on a draft version of the new selection form. The final draft of the form includes several revisions that IA&B requested, including a clearer listing of the options available and a notice to consumers that they may be able to achieve increased protection against uninsured motorists at a lower cost by opting out of EUIM and raising their policy’s liability coverage limit.

PENNSYLVANIA EXPERIENCE RATING METHODOLOGY CHANGES

Effective April 1, 2024, the Pennsylvania Compensation Rating Bureau (PCRB) will modify its experience rating methodology. The changes are meant to improve the predictive accuracy of the rating plan and to incentivize worker safety. Of note:

▲ Eligibility for experience rating will drop from $10,000 to $5,000 in premiums.

▲ Variable split points will be introduced to act as a per-accident limit for actual primary losses.

▲ Annual caps are changing through a transition period.

According to the PCRB during talks with IA&B, projections show that smaller risks especially are expected to receive markedly higher credibility.

This change is an excellent opportunity to revisit your and your staff’s familiarity with experience rating in general and mod worksheets in particular. Agents understanding the modification may have a competitive edge over those who don’t.

Learn more by attending IA&B's Dec. 13 webinar. Register: IABforME.com/ eventregistrations/?eventId=6744

DELAWARE WC RATES DROP

The Delaware Department of Insurance this fall approved the Delaware Compensation Rating Bureau Amended Filing No. 2304, with overall changes of -13.85% in residual market rates and -10.03% in voluntary market loss costs. The filing takes effect Dec. 1, 2023.

DCRB.com