After weeks of deliberation, the Pandemic Risk Insurance Act, or “PRIA” has been introduced into the U.S. Congress. On May 26th, Rep. Carolyn Maloney, a member of the House Financial Services Committee, introduced H.R. 7011, the “Pandemic Risk Insurance Act of 2020” (the “Current PRIA Bill”).
Read MoreCOVID-19 is impacting all facets of the insurance industry, and while the surplus lines market is somewhat inoculated from the impact of various state orders and emergency regulations, many states as well as the National Association of Insurance Commissioners (“NAIC”) are subjecting surplus lines insurers and brokers to their mandates. This article provides a sample of various state and NAIC requests and orders in recent weeks with applicability to the surplus lines industry, including but not limited to moratoriums on cancellation/nonrenewal, orders to return premium with respect to insurance policies where COVID-19 has altered the nature of the underlying risk, and various data calls.
Read MoreThe COVID-19 pandemic has rocked the United States and the sense of security of its citizenry in a way not seen since the tragedies of September 11th, 2001. The insurance industry, like the rest of us, is reacting in real time to the rapidly-evolving business climate, from managing the flow of claims to responding to federal and state-level mandates.
Read MoreThe insurance industry experienced significant and varied forms of new legislation and regulation during the last decade. Below, we highlight what we view as the top 10 of these legal and regulatory changes.
Read MoreOn 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 MoreOn Monday, the ‘‘Clarifying Law Around Insurance of Marijuana Act’’ or ‘‘CLAIM Act” was introduced before the United States Senate by Sen. Menendez (D-N.J.). The CLAIM Act, which is cosponsored by Sens. Paul (R-Ky.), Merkley (D-Ore.) and Cramer (R-N.D.), would prohibit a federal agency from (i) penalizing or otherwise discouraging insurers from engaging in the business of insurance with a cannabis-related business, or (ii) otherwise terminating or cancelling the policies of an insurer solely because the insurer engaged in the business of insurance in connection with a cannabis-related business.
Read MoreThe 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 MoreLocke Lord’s Insurance & Reinsurance Newsletter provides topical snapshots of recent developments in the fast-changing world of insurance. For further information on any of the subjects covered in the newsletter, please contact one of the members of our Insurance team.
Read MoreOn Tuesday, the Senate passed a four month extension of the National Flood Insurance Program (“NFIP”). President Trump has already signed the extension, which extends authorization for the NFIP and allows it to continue borrowing funds through the end of the 2018 hurricane season.
Read MoreOn Monday, the Centers for Medicare and Medicaid Services (“CMS”) released (1) the Notice of Benefit and Payment Parameters for 2019 final rule (“Final Rule”), (2) the Final Annual Issuer Letter and (3) guidance on hardship exemptions and transitional policies.
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