Last month, the New York Department of Financial Services (“NYDFS”) proposed an amendment to 11 NYCRR 80-1.6 (the “Regulation”), which would augment the application process to acquire a domestic insurer by potentially limiting the amount of information that must be provided in connection therewith.

The proposals to the Regulation allow…
Read More New York Proposes Regulation to Amend Form A Process

Hurricane Harvey has caused significant exposure for those owning habitational accounts in London’s direct and facultative (“D&F”) market. Habitational coverage insures commercial residential properties, and each habitational account could cover hundreds of properties. Before Hurricane Harvey, many underwriters believed Texas habitational premiums were underpriced, which in turn led to reinsurers…
Read More London Direct and Facultative Market Affected by Harvey

As victims of Hurricane Harvey try to assess their (often catastrophic) damages, many business owners are finding that their traditional coverages do not adequately cover the scope of their losses.  The National Flood Insurance Program (“NFIP”), the primary governmental flood insurance option, has traditionally provided adequate coverage for homeowners, but…
Read More Harvey Shining Limelight on Business Interruption Insurance Industry

As we reported here in May, the Texas Legislature recently passed legislation (House Bill 1774, a copy of which can be found here) which amends Chapter 542 of the Texas Insurance Code—Texas’s general prompt pay statute for insurance claims.  Most of the new law’s provisions are aimed at addressing…
Read More Uncertainty Surrounds New Texas Insurance Law: Divergent Views Emerge on the Impact of the Texas “Hail Storm Bill” on Hurricane Harvey Claims

A primary use case for drones in the insurance industry is the safer, quicker and more accurate adjustment of claims.  With displaced insureds, flooded streets, and significant property damage that could remain inaccessible for extended periods, the ability for insurance companies to quickly and relatively conveniently fly their drones and…
Read More Hurricane Harvey Has and Will be a Test for Many – Including Drones

Hurricane Harvey has brought “500-year” rainfall and flood conditions to Southeastern Texas for the third time in three years, according to the Washington Post. How can insurers and reinsurers prepare for the next unprecedented storm?

Look to the Climate Risk Survey, developed by the National Association of Insurance Commissioners…
Read More Yet another record-breaking storm

Hurricane Harvey made landfall in Texas Friday as the strongest hurricane to hit the United States in a decade, leaving several people dead and tens of thousands more displaced. Additional rain this week could bring the total rain associated with Harvey to 50” in certain areas. Early indications are that…
Read More Hurricane Harvey Cripples Parts of Texas; Insurers Prepare for Billions in Claims

In an action filed by insurance agents working under independent contractor agreements with an insurer, the U.S. District Court for the Northern District of Ohio found the agents were employees who could pursue pension and other employment benefits under the Employee Retirement Income Security Act of 1974 (“ERISA”).  To reach…
Read More Ohio Federal Court Finds Insurance Agents are Employees and Not Independent Contractors

As Hurricane Harvey barrels towards the Gulf, residents of Louisiana and Texas are scrambling to avoid a storm that forecasters currently predict will bring winds of over 110 miles per hour and dangerous flooding.  However, Harvey is creating concern not only for residents of the region, but also for insurers…
Read More With Hurricane Harvey Looming, Insurance and Reinsurance Issues Lurk in the Wings

On August 7, 2017, the NAIC’s Cybersecurity (EX) Working Group met in its continuing effort to develop a model cybersecurity law for the insurance industry.  This effort, which commenced over a year ago, has taken a new direction following the recent promulgation of the New York Department of Financial Services…
Read More NAIC Cybersecurity Progress