Westmont Wire

The North Carolina Surplus Lines Association (“NCSLA”) announced (https://www.ncsla.com/announcements/ncdoi-audit-memorandum) that it has been notified by the North Carolina Department of Insurance (the “Department”) that the Department has begun performing agency reviews of resident and non-resident North Carolina Surplus lines licensees’ files.  This announcement links to a Memorandum (https://www.ncsla.com/resources/surplus-lines-licensing) from the NCSLA and the Department to all licensees which includes pertinent questions and answers.  One of the main focuses of the agency reviews is to ensure the proper licensing of all individuals who are involved in the “procurement” of a non-admitted policy on a North Carolina risk.  This is a core concept of surplus lines (and producer) licensing. All individuals who “procure” insurance need to have their own individual license in addition to the business entity license.

Please contact Westmont Associates with any questions or if you would like support in reviewing your program for compliance in accordance with the North Carolina Surplus Lines licensing laws.

Vermont has released information on new TPA regulations signaling new licensing requirements for TPAs operating in the state. The rule will become effective July 1, 2022. Although the Rule does make reference to the NAIC Uniform Application for Third Party Administrators, no additional application materials are yet available.

To see more, please visit: https://dfr.vermont.gov/reg-bul-ord/third-party-administrator-rule

Westmont will continue to monitor developments. If you have any questions about how this effects your business, or would like to learn more about TPA requirements, please reach out to the Westmont team.

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.