Reporting Developments Affecting the Insurance and Reinsurance Industries
The long-awaited amendments to the California Consumer Privacy Act of 2018 (CCPA) have finally become law. On October 11, 2019—two days before the October 13 deadline—California Governor Gavin Newsom announced that he signed all of the California Legislature’s September 2019 amendments to the CCPA: AB-25, AB-874, AB-1146, AB-1355, and AB-1564.
Read MoreIdaho has seen an impressive surge of surplus lines business over the last year, reporting a 15.7% increase from mid-year 2018 to mid-year 2019, and is now proposing new laws to further drive the growth of its surplus lines market.[1] Pursuant to the Governor’s Executive Order 19-02, (the “Red Tape Reduction Act”), Idaho is rolling out revised regulations for public hearing on October 16, 2019, that provide updated procedures for the placement of surplus lines insurance in the state of Idaho.
Read MoreThe Illinois Department of Insurance has implemented new rules governing life and annuity insurer conduct upon receipt of a death notice, and for interaction with its Lost Policy Finder service for consumers (50 Ill. Adm. Code 920 et seq.). These rules were drafted in response to requirements in the Illinois Unclaimed Life Insurance Benefits Act, which went into effect in 2017 in the aftermath of the national controversy related to how some life and annuity carriers were making use of the Social Security Administration’s Death Master File.
Read MoreThe end of summer and the beginning of fall is usually a sleepy time for insurance regulation. This year, however, a series of bill signings by Illinois Governor JB Pritzker on the same day merit the attention of insurance industry insiders.
Read MoreThe Surplus lines market has traditionally been a method for insurance placement available to property and casualty products only, although states are increasingly opening up other lines of insurance to the nonadmitted market. For example, a growing number of states have either expressly or indirectly allowed for accident and health coverage to be written through the surplus lines market, and the National Association of Insurance Commissioners released guidance earlier this year advising the states on how to effectively legislate for the expansion of insurance lines that may be written on a surplus lines basis.
Read MoreThe Texas Department of Insurance (“TDI”) has issued a warning about certain unauthorized insurance and the liability that can attach to third-party administrators (“TPAs”) and insurance agents that are involved in unauthorized insurance transactions, even when those parties hold valid TDI licenses.
Read MoreThe U.S. Senate Committee on Banking, Housing and Urban Affairs met on September 12, 2019 for the purpose of discussing areas of concern regarding the regulation and supervision of the global insurance industry. In addition to Committee members, representatives of Team USA (NAIC, Federal Reserve and Federal Insurance Office) provided commentary.
Read MoreInsurance agency acquisitions and deal values are near an all-time high and all expectations are that deal flow in 2019 will match or exceed last year’s numbers. And while reported numbers tend to skew towards larger agency transactions there are many agency deals that involve small, local firms that do not appear in industry reports.
Read MoreAs reported in the Insurance Journal, the surplus lines industry is expanding at an approximately 13% faster rate than it was during this time in 2018. Stamping offices are indicating that premium has already hit $18 billion, a 12.7% growth over mid-year 2018 reports. All surplus lines service office states except for Nevada have reported a growth in premiums generated by the surplus lines market. Some of the major coverages that are being increasingly written in the surplus lines space and are contributing to this growth are construction, professional and general liability coverages.
Read MoreRhode Island has recently obtained federal approval for its application for a state innovation waiver under section 1332(c)(1) of the Patient Protection and Affordable Care Act (PPACA). Section 1332 of PPACA allows states to apply for a waiver from certain requirements of the PPACA (set forth in section 1332(a)(2) of the PPACA) in order to develop alternative strategies to provide residents with health insurance.
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