(Editor's Note: Kathy Donovan is senior compliance counsel for Insurance Compliance Solutions at Wolters Kluwer Financial Services and a regular contributor to PC360.) 

The end of yet another year gives all of us an opportunity to review recent legislative and regulatory initiatives and then pause to consider what the next year might bring. As one would expect, 2012 most definitely provided property and casualty (P&C) insurance compliance professionals many new and revised requirements across multiple functional areas. A quick recap of some key updates can assist in identifying the current legislative and regulatory focus and perhaps provide some insight into what 2013 may have in store. 

Underwriting Undergoes Changes
Insurers' underwriting departments, of course, deal with many existing requirements, which often vary widely from state to state. Adding to those requirements are new ones such as those included in California's AB 2303. Beginning Jan. 1, 2013, the state has effectively deleted the "new business" underwriting period for personal automobile insurance as it pertains to permitted reasons to cancel such a policy. Insurers will now be restricted to using the specific reasons listed in Ins. §661 when issuing a cancellation notice for a policy which has been in existence for less than 60 days.