Montana amended its insurance code to revise certain definitions and update certain provisions relating to surplus lines insurance effective March 7, 2019; the amendments can be found here.  Section 33-2-301(3)(t)(i) of the Montana insurance code amended its definition of “surplus lines insurance” to include inland marine insurance.
Read More LL Surplus Lines Series (Entry 3): Revisions to Montana’s Surplus Lines Laws

You are executing on your strategic plan; you have a fully developed product; you have ‎expanded your team; you have deployed ALL the proceeds from your initial Convertible Notes; ‎and you need additional capital to further scale the Entity.‎…
Read More What Every InsurTech Entrepreneur Should Anticipate in Issuing Series A Preferred Stock

The Financial Stability Oversight Council Improvement Act of 2019 (the “Act”) was recently introduced in the United States Senate. Under existing law, the Financial Stability Oversight Council (“FSOC”) can subject certain nonbanks designated as systemically important financial institutions (“SIFIs”) to significant supervision by under Federal Reserve. Under the Act, FSOC would be required to explore alternative approaches before designating nonbanks as SIFIs. The Act, which is supported by members of both major parties, does not reduce FSOC’s emergency designations authority, but rather encourages FSOC to find potential alternatives to SIFI designations, and the significant regulatory and administrative responsibilities that come with the SIFI designation.
Read More Senate Bill Proposes to Revise FSOC Designation Process

One of the hallmarks of surplus lines regulation throughout the United States is the “diligent search” requirement whereby the surplus lines broker (or retail producer) must attempt to place insurance coverage in the admitted market before exporting such coverage to an eligible, unauthorized surplus lines insurer.
Read More LL Surplus Lines Series (Entry 2): New York to Consider Elimination of Diligent Search Requirement for Certain Commercial Policies

We are happy to provide the 2019 edition of our Excess and Surplus Lines Law Manual. This edition reflects all of the pertinent changes in the surplus lines laws and regulations of the 50 states and U.S. territories during the past year.
Read More Excess and Surplus Lines Law Manual 2019 Update

Locke Lord’s Regulatory & Transactional Insurance Practice Group Invites You to a Cocktail & Hors d’oeuvre Reception During the NAIC National Spring Meeting in Orlando, FL…
Read More You’re Invited – NAIC Spring National Meeting Cocktail Reception – April 7

You have a strategic plan; You have an MVP; You have a Team; and You have an Investor!

Both you and the Investor believe in the potential of the Entity. What the exact “potential” is, however, still a matter under discussion.

You hope that the Entity will grow quickly and you will need to sell less equity for the cash you need to scale; the Investor wants to maximize its return – including being well compensated for investing early on and providing essential early-stage funding and support.

However, the truth is that you need money NOW!

What to do?
Read More What Every InsurTech Entrepreneur Should Know About Convertible Promissory Notes and SAFE Agreements