On December 28th, 2020, the Texas Department of Insurance issued a notice to remind automobile insurers of the new “class of driver” exclusion prohibition. Per Texas Insurance Code Section 1952.353, automobile insurers must not exclude any classes of driver in either their policy provisions or endorsements. An insurer may only exclude a driver if the excluded driver is specifically named and the named insured accepts the exclusion in writing. This prohibition applies to both personal and commercial automobile insurance policies.
For more information on this Notice, or any other regulatory compliance matter, please contact Westmont Associates, Inc.
On December 18th, 2020, the Connecticut Insurance Department issued Bulletin Number FS-4SL-20 requiring that every eligible foreign surplus line insurer submit to the Commissioner a report, in compliance with NAIC report guidelines, detailing the financial health and conditions of the insurer as of December 31st, 2020.
This report must be signed and sworn by the President, or Vice-President, of the insurer and must be submitted to the Commissioner by March 1st, 2021. Furthermore, foreign surplus line insurers will be required to submit additional quarterly financial reports of a similar kind in 2021, the first being due on May 15th, 2021.
These reports should be submitted to the Commissioner electronically through the NAIC. For more details relating to the above financial reports, please review the Bulletin HERE.
For more information on this Bulletin, or any other regulatory compliance matter, please contact Westmont Associates, Inc.
On December 4th, 2020 the NAIC issued a revised Model Law addressing Unfair Trade Practices, which has adopted some baseline language regarding rebates. This Model Law does not have binding authority. States may now respond to this Model Rule by choosing to adopt, or not.
For both traditional and institutional consumers, the Model Law permits insurers and producers to offer non-cash gifts, items, or services in connection with marketing, purchase, or other sale of insurance contracts. Insurers and producers must not exceed value amounts deemed “reasonable” by the DOI Commissioner in a given policy year term. Additionally, offers must not require continued purchase or renewal of policies as a condition of gift, item, or service receipt.
The Model Law also permits Insurers and Producers to conduct raffles to the extent permitted by State laws, so long as there remains no financial cost to enter in the raffle, and so long as the prizes are not value in excess of “reasonable” amounts as determined by the Commissioner.
Westmont will be tracking this matter and will follow-up with any new developments. For more information on this Model Rule, or any other regulatory compliance matter, please contact Westmont Associates, Inc.