On March 10, 2016, the Texas Department of Insurance (TDI) will hold a stakeholders meeting to seek input on the preparation of the Department’s next report to the Texas Legislature. Pursuant to Texas Insurance Code Section 32.022, TDI is required to provide a report to the Legislature by December 31st
Testing the Limits – Cyber Coverage Litigation Update
Posted in Privacy/Data Security/Cyber Risk
The growing percentage of businesses that purchase cyber security and data privacy insurance portends a growing number of claims and, inevitably, litigation over some of those claims. Wells Fargo’s 2015 Cyber Security and Data Privacy Survey: How Protected Are You? indicates that nearly half (44%) of companies with $100 to…
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A Common Standard for Evaluating Cyber Risk – Insurers Walk the Walk
Posted in Privacy/Data Security/Cyber Risk
Insurers have struggled to find a common baseline to measure cyber risks. Changes in technology, hacking and other data security risks and the shifting legal landscape concerning liability for data breaches have made the terrain particularly uncertain. Because of the unique and changing nature of cyber risks, current risk models…
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Proposed Illinois Bill would Prohibit the Use of Price Optimization by Illinois Insurers
By Troutman Pepper Locke on
Posted in Illinois Developments, Regulatory
The Illinois Legislature has a bill pending in the House Rules Committee that would ban the use of price optimization by insurers. Price Optimization is the practice of setting premiums based on factors that are not tied to expected losses. House Bill 5719 was introduced on February 10, 2016, and…
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Draft Legislation Would Impose New Requirements Applicable to Negotiation of International Insurance Agreements
By Troutman Pepper Locke on
Posted in Federal Legislative Developments
According to media reports, Rep. Blaine Luetkemeyer (R-Mo.) is expected to introduce legislation that will create new requirements applicable to government officials negotiating international capital standards for insurers. Media reports indicate that the bill, which is still in the drafting stages, would prohibit the U.S. from agreeing to an international…
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Barbara Richardson Appointed as Commissioner of the Nevada Division of Insurance
By Troutman Pepper Locke on
Beginning in March, Barbara Richardson will start her appointment as Commissioner of the Nevada Division of Insurance after the long recruitment to fill the vacancy following Scott Kipper’s resignation in July 2015.
For the past 11 years Richardson served as the Director of Operations and Fraud with the New Hampshire…
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Louisiana Adopts Domestic Surplus Lines Legislation – More States On The Way
By Zachary Lerner & Troutman Pepper Locke on
Posted in Excess and Surplus Lines
Effective August 1, 2015, Louisiana became the 9th state in the United States to adopt legislation permitting the establishment of a domestic surplus lines insurer (“DSLI”). Louisiana now joins Illinois, Oklahoma, Arkansas, Delaware, New Hampshire, New Jersey, North Dakota and Missouri as the states that permit a DSLI to write…
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Leslie Hess Appointed as the Interim Director of the Arizona Department of Insurance
By Troutman Pepper Locke on
Posted in Industry Developments, Regulatory
On February 9, 2016, Arizona Governor Doug Ducey appointed Leslie Hess as the Interim Director of the Arizona Department of Insurance. Hess has more than 25 years of experience in both public and private sectors of the insurance and financial service industries. Prior to being appointed as the Interim Director…
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NAIC Promotes Officers, Elects New Secretary-Treasurer
By Troutman Pepper Locke on
Posted in Industry Developments
On February 7, 2016 during the Plenary meeting of the NAIC, members elected Wisconsin Commissioner Ted Nickel to fill the vacant President-Elect position.
Sharon P. Clark resigned as Kentucky Insurance Commissioner on January 11, 2016. As a result, Tennessee Insurance Commissioner Julie Mix McPeak was elected as NAIC Vice President…
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Reorganization of Texas Lloyd’s Plan
Posted in Regulatory, Texas Developments
Locke Lord LLP recently represented a national platform client in connection with a unique internal reorganization and simplification of their Texas insurance company subsidiary organizational chart. The principal objective on this engagement was to eliminate a legacy Texas Lloyd’s Plan (“TLP”) entity. TLP entities are seen by some as historical…
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