To:           All Insurance Companies Licensed to Write Property & Casualty Insurance in Missouri

From:      Susan M. Schulte, Property & Casualty Section Chief

Re:          Bulletin 99-01, Y2K Coverage and Endorsements

Date:       June 30, 1999

The Missouri Department of Insurance (Department) issued Bulletin 99-01 on January 15, 1999. Since then, many insurers have called to discuss various compliance issues, usually technical in nature. By-and-large, a significant number of insurers seem to be in a position to help the Department monitor the Y2K issue by complying with the requirements of this Bulletin.

However, some insurers have indicated they are unable to or have difficulty complying with certain aspects of the Bulletin. The P&C Section accepted the invitation of the Missouri Insurance Coalition (Coalition) to discuss these concerns. The Coalition held a meeting at its offices on February 26, 1999. As a result of that meeting and subsequent communications, the P&C Section is issuing the following modifications to Bulletin 99-01.

  • Regarding multi-year policies, an insurer may endorse a multi-year policy at the policy's annual anniversary date.
  • Regarding the data reporting requirements:
    • Insurers can protect the confidentiality of the reports by stamping them "Confidential" as set forth in Regulation 20 CSR 10-2.400(8)(B).
    • If an insurer cannot provide the data as requested for whatever reason (e.g., their computer system cannot be so modified, they do not have a method of "flagging" Y2K claims in their system, etc.) they should explain those reasons in a written document to be filed as a supplement with the report. In addition, insurers should provide as high a level of good faith compliance as is possible under their unique circumstances. For example, if the insurer's computer system cannot track Y2K claims, it should have its claims staff estimate the claims. If data cannot be provided on the various lines of coverage, it should be provided in the aggregate. Remember that the Department is trying to obtain enough information to provide a rough estimate of what is actually occurring in the market regarding Y2K; the informed opinion of company personnel will be useful to the Department even if the company's computer system cannot track the information.
    • The reporting form attached to the Bulletin can be annotated as necessary.
    • Only Missouri-specific information is being sought.
    • Some entries on the report will be "zeros"; this is to be expected, especially on the first report.
  • Finally, for those insurers who indicate they are not using Y2K exclusionary endorsements, please keep track of Y2K-related claims information and report this to the Department on the December report.

If you have any questions regarding this notice, please feel free to contact Susan Schulte, Property & Casualty Section Chief, Missouri Department of Insurance, P.O. Box 690, Jefferson City, MO 65102, (573) 751-3365 or fax (573) 526-4839.