Join Locke Lord, InsurTechNY and InsurTech Hartford for their next InsurTech Legal Academy webinar series on common licensing issues that InsurTechs face when starting up or expanding their insurance-related activities. Expectations differ between the various states, as well as the NAIC, regarding what activities do and do not require insurance producer and surplus lines broker licensure (both on an individual and entity level). Moreover, even if an InsurTech is not making a final decision on whether to accept or deny a claim, it may “cross the line” into licensable activity as well. Zach and Moya will also touch on nuances in the reinsurance intermediary space as well, which differ substantially from insurance producer licensing standards in a number of states.
Moya McKenna
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Texas Reduces Surplus Lines Stamping Fee
By Moya McKenna on
Posted in Excess and Surplus Lines, United States
The Texas Department Insurance (“TDI”) Commissioner Cassie Brown issued an order decreasing the surplus lines stamping fee from .075% to .04% of gross premium resulting from surplus lines insurance contracts. The decrease will apply to new or renewal surplus lines policies with an effective date on or after January 1, 2024.…
Texas Legislature to ESG: Don’t Mess With Texas
By Moya McKenna on
Posted in Texas Developments, United States
The 88th Regular Session (2023) of the Texas Legislature voted to enact Senate Bill 833 (“SB 833”), which aims to prohibit insurers operating in Texas from using environmental, social, or governance (“ESG”) models, scores, factors, or standards to charge different rates to businesses or risks in the same class facing essentially the same hazards. Because of the divergent approach states have taken regarding ESG issues, SB 833 may present unique challenges for insurance companies operating across multiple jurisdictions. To navigate this complex landscape, insurance companies need to develop flexible strategies that can accommodate the contrasting regulatory expectations in the states coined “anti-ESG” versus the “pro-ESG” states. This scenario not only involves managing legal and compliance risks but also managing reputational risks.…