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Adoption of Global Insurance Capital Standard

Although the NAIC has issued a report praising the adoption of changes which are meant to protect U.S. interests in the negotiation of global insurance capital standards with the International Association of Insurance Supervisor’s (IAIS) the U.S Treasury has expressed dissatisfaction with the proposal.
The Treasury Department and the Federal Insurance Office have objected to the IAIS’ proposal to advance Version 2.0 of the standards into a five year monitoring period. Treasury believes that U.S. insurers should not be forced to participate in the IAIS Version 2.0, which is based on the European Union Solvency II approach, since it is not expected to apply in the U.S. and does not fit U.S. markets. They contend that its application could risk limiting U.S. consumer’s access to long term care products.
ICS Version 2.0, launches in January and while the IAIS cannot force carriers operating in the United States to abide by these standards, it may be able to enforce Version 2.0 on U.S. insurers selling their products globally. Both the NAIC and Treasury have indicated that they will continue to cooperate in the international project and accept those proposals that are in the best interest of U.S. consumers and insurers.
For any additional information regarding the IAIS agreement, or any other compliance needs, please contact Westmont Associates, Inc.

Puerto Rico Office of the Commissioner of Insurance Partially Closed for Office Move

The Puerto Rico Office of the Commissioner of Insurance issued CIRCULAR LETTER NO.: CC-2019-1956 -D on November 12, 2019. This notice advised that the Office of the Commissioner of Insurance of Puerto Rico (OCI) will be closing during relocation of the office to San Juan, Puerto Rico. The OCI will be temporarily closed on November 14, 2019 through November 29, 2019 and resume normal operations on Monday, December 2, 2019 at its new location. During this period application processing times will be delayed. Applications submitted during this time through NIPR will be issued or renewed by OCI with the original submitted date. The circular was signed by Javier Rivera-Ríos, Commissioner of insurance.
Here is the wording from the Circular:
“Effective November 15, 2019, the Office of the Commissioner of Insurance of Puerto Rico, hereinafter “the OCI,” will relocate its facilities in the World Plaza building in Hato Rey. As part of the moving process, the relocation of our facilities will require the OCI to temporarily suspend operations for the general public for a short period of time, which will allow us to resume providing services normally as soon as possible. To meet this goal, a partial shutdown has been scheduled, during which the general public will not be received at our facilities from Thursday, November 14, until Friday, November 29, 2019. The OCI will resume normal operations on Monday December 2, 2019, on its regular schedule, from 8:00 am to 4:30 pm. The new street address of the OCI is the following:
Edificio World Plaza
268 Muñoz Rivera Ave.
San Juan, PR 00918
Accordingly, the applicable terms for filing documents or information related to impairment orders, examination reports, annual reports, admissions, mergers, forms and rates filings, license renewals, continuing education, requests for hearings, among others, that are due during the partial shutdown period will be moved up to December 2, 2019, the date on which the OCI will be receiving correspondence at the window.
Any applicable terms for the OCI, under the provisions of the Puerto Rico Insurance Code, for the evaluation and approval of forms and rates filings, authorization of insurers, approval of administration agreements, issuance and renewal of licenses, investigations, extensions of time, among others, will be interrupted as of November 14, 2019 and will resume as of December 2, 2019, the date on which the OCI will resume normal operations. The effect of all regular insurance licenses with an expiration date of November 30, 2019, will be extended up to December 13, 2019.”
For any questions regarding the Office of the Commissioner of Insurance of Puerto Rico’s relocation or any other regulatory compliance concerns, please contact Westmont Associates, Inc.

California Extends Notice of Nonrenewal Requirements on Certain Lines of Insurance

On October 12, 2019, California Governor Gavin Newsom signed Assembly Bill 1816 into law. Among other changes to the Code, AB 1816 amends Cal. Ins. Code § 678 to require insurers to provide at least 75 days’ notice before sending a notice of non-renewal of a policy which provides coverage for real property used primarily for residential purposes (homeowners), personal property in which residents of the real property have an interest and legal liability of a natural person or persons. If the insurer fails to provide the 75 days’ notice, the existing policy shall remain in effect with no changes from the date that the notice of non-renewal is actually delivered. This is an increase from the current 45 day notice provision.
Additionally, the insurer’s notice shall include a statement that if the insured has contacted the insurer to discuss the non-renewal and is not satisfied with the response, the insured may contact the Insurance department. The notice must provide the insurance departments website, (800) number and mailing address. These changes shall apply to all notices of non-renewal issued on or after July 1, 2020.
For any questions regarding nonrenewal notices and Assembly Bill 1816, or any other regulatory compliance concerns, please contact Westmont Associates, Inc.


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