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Westmont Wire

Pennsylvania Introduces Program to Encourage Insurance Innovation

The Pennsylvania Insurance Department (PID) announced the implementation of a new program designed to encourage innovation in the insurance industry by removing barriers and speeding up the regulatory process for new services and products.

Keystone Smart Launch features discussion forums and an Idea Portal through which individuals may discuss and submit ideas for new insurance solutions and products. Once submissions are reviewed, the PID will supply feedback and note considerations that should be addressed before starting the regulatory process. By providing this information up front, the program aims to make the process smoother and faster. Keystone Smart Launch is open to registered and non-registered entities.

For more information on Keystone Smart Launch, or any other questions regarding new insurance products, please contact Westmont Associates, Inc.

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States Continue to Roll Out Data Security Initiatives

Two additional states recently adopted versions of the NAIC Data Security Model Law. On April 30, 2021, Iowa governor Kim Reynolds signed HF 719, and on May 6, 2021, Tennessee governor Bill Lee signed HB 0766. Both statutes require licensees to develop, implement, and maintain an information security program to protect nonpublic information.

Effective in 2022, the statutes require that each year insurers domiciled in the state submit to the Commissioner a written certification of compliance with the statute.  If there is a cybersecurity event, the licensee must conduct a prompt investigation, including notifying the commissioner as soon as possible. Furthermore, affected consumers or those consumers reasonably believed to have been affected must also be notified.

Furthermore, Louisiana, having passed a similar law in June 2020, issued Bulletin 2021-04 reminding licensees that they are required to have designed and implemented a compliant information security program by August 1, 2021.

For more information on HF 719, HB 0766, La. R.S. 22:2501, or any other questions regarding licensee’s cybersecurity reporting responsibilities, please contact Westmont Associates, Inc.

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Kansas Producer Licensing Reform

On May 25, 2021, the Kansas Insurance Department notified licensees of Senate Bill 37, which impacts producer licensing, appointments, affiliations, and resident licensee requirements. The bill has many different impacts, please see: https://insurance.ks.gov/producer-licensing/Producer-Licensing-Reform-Implementation-FAQ.pdf for the full text.
A select few updates with broad applicability include:
  • Effective July 1, 2021:
  • A company will no longer be required to file appointments for business entities (agencies);
  • The Department will no longer require business entities to report affiliated licensed producers (agents);
  • Licensee’s renewal dates are changing from the producer’s birthday to the last day of the producer’s birth month, in an even or odd year, depending on whether the agent was born in an even or odd year.
  • Effective January 1, 2022:
  • Home and mailing addresses, name changes, email address, regulatory actions, terminations for cause, and new convictions must be reported to the Department within 30 days.
For more information on producer licensing, appointments, or the Kansas Update, please contact Westmont Associates, Inc.
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