Compliance Alerts

November & December 2021

 

Effective State Changes

 

ILLINOIS

House Bill 1796 was signed into law by Governor J B Pritzker on November 16, 2021. This new law introduces the Reimagining Electric Vehicles in Illinois Act. Among other provisions, the Department of Commerce and Economic Opportunity shall provide financial incentives and tax credits to eligible manufacturers of electric vehicles, component parts, and power supply equipment. Effective immediately.

The document preparation fee in the State of Illinois rises from $303.60 to $324.24. Effective January 1, 2022.

 

INDIANA

Published in Bulletin 262 on November 30, 2021, the Indiana Insurance Commissioner adjusted credit life rates effective January 1, 2022. The discount rate used for credit life is 1.82%. The discount rate used for accident and health is 1.42%.

Credit life prima facie rates for monthly outstanding balance are increased to:

  • $0.81 per month per $1000 of outstanding insured debt on single life
  • $1.35 per month per $1000 of outstanding insured debt on joint life

The A&H rates will remain the same as the those established in Bulletin 246. The 12-month rate per $100 of Initial Insured Indebtedness will be as follows:

  • 14 Retro:  $1.50
  • 14 Elim:    $1.05
  • 30 Retro:  $1.03
  • 30 Elim:    $0.77

Effective January 1, 2022.

 

MICHIGAN

House Bill 4117 would allow the Secretary of State to issue vehicle registrations for two years if requested by the vehicle owner. Effective October 1, 2022.

 

NEW JERSEY

Senate Bill 324 directs the Chief Administrator of the New Jersey Motor Vehicle Commission to promulgate rules and regulations in order to create electronic registration certificates. Effective May 1, 2023.

 

SOUTH CAROLINA

On October 1, 2021, the South Carolina Department of Insurance adopted Orders 2021-02, 2021-03, and 2021-04 confirming Prima Facie Credit A&H and Credit Property rates for 2022. Under 2021-02, the Credit A&H rates for insurance sold in conjunction with consumer credit transactions in 2022 will decrease from their current rates in 2021. The 12-month rate for $100 of Initial Insured Indebtedness will be as follows:

  • 14-day Retro: $1.38
  • 30-day Retro: $1.30

Under Order 2021-03, Credit Property rates for Automobile Fire and Theft, Automobile Collision, and Household Goods – Dual Interest, have decreased. Household Goods – Single Interest remains the same. Under Order 2021-04, the 3-day retroactive A&H rate for insurance sold in conjunction with loans will decrease to $0.25 per $5.00 of monthly indemnity. Effective January 1, 2022.

 

Effective Federal Changes     

 

CFPB - ANNUAL REGULATION M & Z ADJUSTMENTS

The Consumer Financial Protection Bureau (“CFPB”) published its annual Truth in Lending Act threshold adjustment, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For 2022 the exemption threshold amount for Regulation M and Z will remain the same at $61,000. Effective January 1, 2022.

 

Reminders

 

VIRGINIA

In August, we reported on Virginia’s adjustment of the prima facie rates which were adopted for a three-year period. The Accident & Sickness rates for 2022 were updated. The 12-month rate for $100 of Initial Insured Indebtedness will be as follows:

  • 14-day Retro: $1.56

  • 30-day Retro: $1.12

Pursuant to Case No. INS-2021-00023, the credit life insurance rates will be $0.6672 per month per $1,000.00 of outstanding insured indebtedness if premiums are payable on a monthly outstanding balance basis. The rate per $100.00 of initial indebtedness repayable in 12 equal monthly installments is $0.4259. Effective January 1, 2022.