Join Troutman Pepper Locke Partners John Emmanuel and Zachary Lerner as they kick off Surplus Lines 360, a series that demystifies the evolving landscape of surplus lines insurance. In this video, discover what surplus lines are (and are not), how eligibility works for both domestic and alien insurers, the regulatory dynamics between state and federal oversight, and the expanding reach of surplus lines into other coverage areas.Read More Introducing Surplus Lines 360

This article provides an excellent overview of the challenges insurers face in drafting policy language that keeps pace with the fast-evolving use of artificial intelligence. The author discusses how multiple insurers faced the challenge of defining what is “artificial intelligence” or “generative AI” by consulting with various industry sources. I…

Read More AI Definitions a Challenge for Liability Insurers’ Exclusions

This article was originally published on Insurance Journal and is republished here with permission as it originally appeared on November 3, 2025.

Anyone in the insurance brokerage world generally knows the three magic words that require an insurance producer license: the “sale,” “solicitation,” or “negotiation” of insurance. For too many, this is the end of the equation. Most state insurance codes do not expand on what these words truly mean beyond providing general definitions derived in whole or in part from the Producer Licensing Model Act (PLMA) promulgated by the National Association of Insurance Commissioners (NAIC). As a result, the market is saturated with inconsistent treatment of licensing practices, both at the individual and entity levels.Read More Practical Licensing Challenges & Solutions for Producers, Brokers, Adjusters & Other Intermediaries

Key Point: All businesses struggle with cybersecurity risks presented by their service providers. New guidance from the NY DFS applies to all DFS regulated entities, but the guidance would assist any business in any industry in addressing these risks.

On October 21, 2025, the New York Department of Financial Services (the “DFS”) issued important guidance for covered entities (including all DFS licensees) for managing their cybersecurity risk related to third-party service providers (“TPSPs”). Industry Letter – October 21, 2025: Guidance on Managing Risks Related to Third-Party Service Providers | Department of Financial Services specifically includes the covered entity’s use of cloud, file transfer, AI and fintech providers (“Guidance”). According to the DFS, the “Guidance does not impose new requirements or obligations . . ..” Rather, “it is intended to clarify regulatory requirements, recommend industry best practices . . ., and promote compliance . . ..” The Guidance highlights that managing the cybersecurity risk presented by TPSPs “remains a crucial element of a Covered Entity’s cybersecurity program,” and notes that it applies to all covered entities, regardless of size.Read More Important Guidance on Third-Party Service Provider Cyber Risk

On October 10, 2025, the Connecticut Department of Insurance (the Department) issued Bulletin SL-6 (the Bulletin) to restate the requirements generally applicable to surplus lines placements, and to advise that the diligent effort exception established by Public Act 25-87, effective October 1, 2025, only applies to surplus lines brokers when they procure insurance coverage through an unaffiliated wholesale broker. The Bulletin additionally supersedes and rescinds Connecticut Bulletins SL-3 and SL-5.Read More When Surplus Lines Brokers Are Off the Hook: Connecticut Department Issues Bulletin on New Diligent Effort Exception

On October 10, 2025, the Illinois attorney general, on behalf of the Illinois insurance director, filed a complaint in the Circuit Court of Cook County, Chancery Division, Case No. 2025 CH 10454, against a large group of Illinois domestic property and casualty insurers (insurer), alleging that the insurer failed to comply with Illinois insurance laws by refusing to provide information about the homeowners policies the insurer has issued nationwide. A copy of the complaint is found here. In particular, the insurance director has asserted that the insurer’s refusal to provide the information on a nationwide basis in the context of a targeted financial examination violates the following insurance examination statutes (collectively, the examination laws): (a) Conduct of examinations; appointment of examiners (215 ILCS 5/132.4(b)); (b) Market conduct examinations (215 ILCS 5/132(d)); (c) Insurance Holding Company System Act – Examination of registered insurers (215 ILCS 5/131.21(1.5)); and Unfair Methods of Competition and Unfair and Deceptive Acts and Practices – Examinations and investigations (215 ILCS 5/425). The alleged violations arise under a targeted financial exam warrant issued to the insurer in November 2024 (warrant). The warrant references the insurance director’s statutory authority under the examination laws, as well as the insurance director’s general powers and enforcement authority. The court has scheduled a hearing for December 15, 2025. The insurance director is seeking declaratory relief from the court that would require the insurer to provide the nationwide information requested.Read More Can Illinois Insurance Regulators Request Nationwide Homeowners Policy Information Under Examination Laws?

In a press release dated September 19, 2025, Commissioner Ricardo Lara announced proposed changes to California’s rate review and intervenor system. The state’s intervenor system, initially established by Proposition 103 in 1988 and last updated in 2006, currently authorizes “intervenors” to participate in rate review. The system allows intervenors to recover costs, expenses, and attorneys’ fees related to their intervention from insurers. By law, insurers are permitted to pass these costs on to consumers.Read More California Commissioner Announces Proposed Changes to Proposition 103 and Intervenor Process

On September 26, 2025, Governor Kathy Hochul of New York signed into law AB 5600 (the Bill), which amends N.Y. Ins. Law §7425 to address the treatment of voidable transfers involving Federal Home Loan Banks (FHLBs), as well as the conduct of parties to delinquency proceedings against New York domiciled insurer-members of an FHLB. FHLBs are government-sponsored entities that lend to members on a fully secured basis at a low interest rate. According to the legislative findings accompanying the Bill (the Legislative Findings), FHLBs were created during the Great Depression to provide easy liquidity for banks and insurance companies and to provide a stabilizing mechanism in times of economic uncertainty.[1] Insurance companies and depository institutions must apply for membership, subject to approval by the Federal Housing Finance Agency, and purchase a certain amount of stock in the FHLB to avail themselves of member benefits.[2]Read More New York Amends Voidable Transactions Law for Application to Federal Home Loan Banks

New York Governor Kathy Hochul announced today that Adrienne Harris will step down as superintendent of the New York State Department of Financial Services (NYDFS), effective October 18. Following Harris’s departure, Hochul has appointed Kaitlin Asrow to serve as acting superintendent.Read More NYDFS Announces Leadership Change: Adrienne Harris to Step Down, Kaitlin Asrow Named Acting Superintendent

What Happened

In a press release published August 25, New York Senators James Skoufis, Jamaal Bailey, and Brian Kavanagh announced a joint investigation into residential property insurance. The purpose of the investigation is “to identify the causes of reported increases in premiums and other obstacles to insuring new and existing single- and multi-family homes, including those occupied by homeowners and renters, and to identify legislation and policy changes that New York State should implement.”Read More New York Legislators Investigate Residential Property Insurance