New York Department of Financial Services (DFS) released its climate change guidance New York domestic insurers for comment on March 26, 2021. The Guidance, found here, seeks to support domestic insurers in managing the financial risks associated with climate change.
New York Developments
The New York Department of Financial Services Seeks to Promote a Culture of Diversity, Equity and Inclusion
By Alan Levin & Troutman Pepper Locke on
Posted in New York Developments, United States
On March 16, 2021, the New York Department of Financial Services issued Circular Letter No. 5 “Diversity and Corporate Governance,” which notifies all insurers of the need for increased prioritization of diversity in C-Suite leadership and corporate governance more generally.…
New York State’s Legislature Looks to Introduce Covid-19 Related Changes in the Insurance Industry
By Troutman Pepper Locke on
On January 13, 2021, the New York Assembly introduced Assembly Bill A1937, which nullifies policy provisions denying claims for loss or damage to property based on virus, bacterium or other microorganisms. The bill covers businesses with fewer than 250 employees working at least 25 hours a week and provides that insurers, including excess lines insurers, which indemnify insureds who file claims based on losses due to virus, bacterium or other microorganisms, may apply to the Department of Financial Services for financial relief and reimbursement. The bill further authorizes the Department of Financial Services to collect from insurers, including excess lines insurers, amounts necessary to cover such requests for financial relief and reimbursement.…
LL Surplus Lines Series (Entry 24): Excess Line Association of New York Weighs in on “Surplus Lines Agents”
On June 16, 2020, the Excess Line Association of New York (“ELANY”) issued Bulletin No. 2020-35, promulgating ELANY’s new issue of “ELANY Elaborates” (the “EE”). This issue of EE (available here) focuses primarily on the classification of “surplus lines agents” in New York and elsewhere.…
New York Adopts Rule Authorizing the Superintendent to Act as the Group-Wide Supervisor for Internationally Active Insurance Groups
By Troutman Pepper Locke on
Posted in New York Developments, United States
The New York Department of Financial Services (“DFS”) adopted final rule, 11 NYCRR 82.1,4,5, and 6 (Insurance Regulation 203)(the “Amendments”), authorizing the Superintendent to act as the Group-Wide Supervisor (“GWS”) for an Internationally Active Insurance Group (“IAIG”) having a nexus to New York, effective June 3, 2020.…
LL Surplus Lines Series (Entry 23): Sampling of COVID-19 State and NAIC Insurance Updates Applicable to the Surplus Lines Industry
COVID-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.…
NY DFS Issues Guidance to Regulated Entities for Cybersecurity in the Remote Work Environment
Reminding NY DFS regulated entities that its Cybersecurity Regulation (23 NYCRR Part 500) requires assessment of cybersecurity risk, and the reporting of certain cybersecurity events within 72 hours, the DFS issued guidance specific to the current COVID-19 pandemic. The DFS guidance is appropriate for any business, whether or not subject to the NY Regulation.…
New York Bill to Change Business Interruption Cover for Covid-19 Amended and Clarified
On March 27, 2020, a pair of New York State Assembly members introduced a bill that was aimed at requiring insurance carriers that issued a loss of use or business interruption policy to retroactively cover the losses resulting from Covid-19.…
New York Department of Financial Services Issues Circular Letter No. 7 Urging Regulated Entities to do Their Part to Support Consumers, Including Actions to Avoid Cancellation or Non-Renewal of Policies
By Troutman Pepper Locke on
On March 19th, the New York Department of Financial Services (“DFS”) issued Circular Letter No. 7 (2020) (the “Letter”) urging all regulated entities to do their part to alleviate the adverse impact caused by COVID-19 on consumers and small businesses.…
New York Mayor de Blasio Issues Emergency Executive Order 100 Imposing Restrictions on Gatherings and Businesses
By Troutman Pepper Locke on
On March 16th, New York Mayor Bill de Blasio issued Emergency Executive Order No. 100 (the “Order”), imposing restrictions on gatherings and businesses during the COVID-19 State of Emergency. The Order, amongst other things, ordered the temporary closure of all entertainment venues, commercial gyms, and adult congregate centers. The Order also limits restaurants, bars and cafes to take-out and delivery orders only.…