On September 24, 2019, the U.S. Department of the Treasury (“Treasury”) proposed regulations to expand considerably the scope of transactions subject to review by the Committee on Foreign Investment in the United States (“CFIUS”), to now include certain transactions in the insurance industry, where “sensitive personal data” could become accessible to a foreign person.
Read More Locke Lord QuickStudy: New CFIUS Regulations Foreshadow an Increased Impact on the Insurance Industry
All placements of insurance in the United States are generally subject to state premium taxation, but the responsible taxpayer depends on the type of insurance policy issued. Premium tax is usually payable by the insurer on admitted insurance policies (insurance issued by a carrier licensed in the jurisdiction where the policy is delivered).
Read More Developments In State Taxation Of Nonadmitted Insurance
Since January 1, 2019 there have been approximately 20 spinoff transactions announced. And to date there have been a number of instances of litigation arising out of spinoffs, some of which have insurance-related issues in dispute.
Read More Insurance Considerations Arising From Spinoff Transactions
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 More CCPA Amendments Are In! Draft CCPA Regulations Are Out!
The 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 More New Illinois Department of Insurance Rules Clarify Use of Life Policy Finder and How Insurers Must Conduct Searches After Receiving a Death Notice
The 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 More Flurry of Late Summer Regulatory Activity Will Affect Illinois Insurers
The 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 More LL Surplus Lines Series (Entry 16): Expert Analysis – Disability Insurance in the Surplus Lines Market and Recent Legislative Updates
The 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 More Texas Department of Insurance Warns Insurance Agents and TPAs About Unauthorized Insurance Liability
As 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 More LL Surplus Lines Series (Entry 15): Mid-Year 2019 Report Shows Impressive Surplus Lines Growth
Ben Sykes will serve as a panelist at the Insurtech on the Silicon Prairie conference on Oct. 22. His topic is insurtech/innovation and regulatory modernization. The annual conference is a one-day event bringing national experts, companies, and regulators together to discuss the rapidly changing insurance landscape.
Read More Ben Sykes to Speak at Insurtech on the Silicon Prairie