Iowa Insurance Division Releases Proposed AI Bulletin for Comment
On October 10, 2024, the Iowa Insurance Division released for comment a proposed AI Bulletin based upon the NAIC AI Model Bulletin.
Read MoreOne firm, endless possibilities
Locke Lord and Troutman Pepper will become Troutman Pepper Locke on January 1, 2025.
by Paige Waters | Oct 15, 2024 | Artificial Intelligence, Regulatory | United States
On October 10, 2024, the Iowa Insurance Division released for comment a proposed AI Bulletin based upon the NAIC AI Model Bulletin.
Read Moreby Zachary Lerner and Moya McKenna | Sep 6, 2024 | Excess and Surplus Lines, InsurTech, Regulatory, Reinsurance, State Legislative Developments
Join Locke Lord, InsurTechNY and InsurTech Hartford for their next InsurTech Legal Academy webinar series on common licensing issues that InsurTechs face when starting up or expanding their insurance-related activities. Expectations differ between the various states, as well as the NAIC, regarding what activities do and do not require insurance producer and surplus lines broker licensure (both on an individual and entity level). Moreover, even if an InsurTech is not making a final decision on whether to accept or deny a claim, it may “cross the line” into licensable activity as well. Zach and Moya will also touch on nuances in the reinsurance intermediary space as well, which differ substantially from insurance producer licensing standards in a number of states.
Read Moreby Daniel Barry | Jul 16, 2024 | Regulatory | United States
Last week, both the New York Department of Financial Services (“DFS”) and the National Association of Insurance Commissioners (“NAIC”) acted on official guidance pertaining to accelerated underwriting by life insurance companies. DFS formally adopted Insurance Circular Letter No. 7 (2024), which establishes principles for when insurance carriers use artificial intelligence in underwriting and pricing, and clarifies the pre-existing Insurance Circular Letter No. 1 (2019), which chiefly concerns external data sources and “expedited, accelerated or algorithmic underwriting process[es] in lieu of a traditional medical underwriting.” The NAIC’s Accelerated Underwriting (A) Working Group met the next day to consider comments on its previously exposed Regulatory Guidance and a referral for the Market Regulation Handbook. The working group exposed for public comment a revised guidance document for a two-week comment period that is presumably the final version before adoption at next month’s Summer National Meeting.
Read Moreby Daniel Barry | Jun 26, 2024 | Regulatory | United States
It has been heavily covered in national news media that property & casualty insurers have been withdrawing from certain business lines, in particular homeowners, in states such as California, Florida, Louisiana, and Texas. Other states around the country are also experiencing heightened numbers of insurance carriers exiting some markets. In response states have been addressing different aspects of insurance carrier withdrawal in various ways. For instance, last fall, Connecticut issued a Bulletin which requires property & casualty insurers that discontinue or substantially reduce “writings in a line or subline” to provide prior notice to the state insurance regulator. Earlier this year, Iowa extended the consumer notice period for renewals and non-renewals of personal lines policies from 30 days to 60 days. This spring, the Delaware Department of Insurance (the “Department”) raised the issue of “carriers quietly exiting lines of business” while the New Mexico Office of Superintendent of Insurance (the “OSI”) proposed a regulation which would impose on property & casualty insurers prior notice to OSI when discontinuing products in the state.
Read Moreby Jeffrey Bohn | Jun 3, 2024 | Regulatory | United States
On May 24, 2024, the Massachusetts Division of Insurance (the “Division”) issued Insurance Bulletin 2024-06, “inducements, rebates and affiliated entities” (the “Bulletin”). The Bulletin is addressed to “all licensed insurance companies and insurance producers.” The Division issued the Bulletin to “remind insurance companies, officers thereof, and insurance producers authorized to operate in Massachusetts” that Massachusetts law prohibits, as an unfair or deceptive act or practice in connection with the transaction of insurance business, insurance companies, officers, and producers from “paying, giving, or allowing to pay or give, directly or indirectly, ‘anything of value’ or ‘any valuable consideration’, not specified in the insurance contract, as an inducement to the purchase of insurance or a rebate of insurance premium.” The Bulletin further reminds insurance producers that Massachusetts law also prohibits any “special favor or advantage” to accrue to an such producer that is not specified in the policy. Unlawful rebates or inducements are not solely limited to “reductions on insurance premiums”, but rather such rebates or inducements “include payments, reductions or discounts, not specified in the insurance contract, that would bestow anything of value, valuable consideration, special favor or advantage on the insurance producer.”
Read Moreby Jeffrey Bohn | May 31, 2024 | Regulatory | United States
On May 23, 2024, the New York Department of Financial Services (the “Department”) issued Insurance Circular Letter No. 3 (the “Letter”). The Letter is addressed to “all insurers authorized to write property/casualty insurance in New York State, the New York Property Insurance Underwriting Association [‘NYPIUA’], and rate service organizations.” The purpose of the Letter is to “encourage all insurers authorized to write property/casualty insurance in New York State (‘insurers’) to offer loss mitigation tools and services to insureds for free or a reduced fee…and to encourage insurers, the [NYPIUA], and rate service organizations…to file with the [Department] actuarially appropriate discounts for insureds for the installation of devices or systems that mitigate or prevent losses….” As a result in a rise in the InsurTech space, in 2021 the National Association of Insurance Commissioners (“NAIC”) updated the anti-rebating section of the NAIC Model Unfair Trade Practices Act (#880) (Section 4(I)) by excluding various value-added products or services that an insurer or producer may offer at no cost or a reduced fee from the definition of impermissible discrimination or rebates. Other states have also implemented such changes.
Read Moreby Paige Waters and Stephanie O’Neill Macro | May 20, 2024 | Artificial Intelligence, InsurTech, Regulatory | United States
Join Locke Lord, InsurTechNY and InsurTech Hartford for their next InsurTech Legal Academy webinar series on legal and regulatory issues impacting the InsurTech industry. Each quarter, we tackle a new important topic impacting InsurTechs. This webinar will address the potential impact of AI Regulation on InsurTechs and give an overview of recent AI regulatory initiatives at the NAIC, state and federal levels.
Read Moreby John Emmanuel and Zachary Lerner | May 16, 2024 | Excess and Surplus Lines, Regulatory | United States
We are happy to provide the 2024 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. The website provides you with the ability to click on the states and territories of interest to view the updates, and a PDF of the entire manual.
Read Moreby Paige Waters and Stephanie O’Neill Macro | Apr 23, 2024 | Artificial Intelligence, Regulatory | United States
On April 22, 2024, the Washington Office of the Insurance Commissioner issued Technical Assistance Advisory 2024-02 regarding “The Use of Artificial Intelligence Systems in Insurance” (the “Advisory”).
Read Moreby Paige Waters and Stephanie O’Neill Macro | Apr 22, 2024 | Artificial Intelligence, Healthcare, Industry Developments, Privacy/Data Security/Cyber Risk, Regulatory | United States
Commissioner Kathleen Birrane, Maryland Insurance Administration, on April 22, 2024 issued Bulletin No. 24-11, The Use of Artificial Intelligence Systems in Insurance (the “Bulletin”).
Read More