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Westmont Wire

Excess Line Association of New York Bulletin No. 2018-20

The Excess Line Association of New York recently released Bulletin No. 2018-20 as a reminder that all excess line broker business entity licenses expire on October 31, 2018.

Included within the bulletin was an important statement regarding when an entity license is required as opposed to when an individual license can be used. Most notably this notice from New York clearly draws the line stating “when an entity is selling, soliciting or negotiating insurance contracts, gets paid commissions and holds premium trust funds in its name… the entity must be licensed.”

The license referenced in this bulletin is a New York Excess Lines license. However, it articulates a common stance held in many states for both Producer and Surplus Lines entity licenses.

If you have any compliance questions or need licensing support do not hesitate to contact Westmont!

Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services.  If you have any questions, please contact us at (856)216-0220.

South Carolina Passes Cybersecurity Bill

On May 3, 2018, South Carolina became the first state to enact a cybersecurity law derived from the National Association of Insurance Commissioners’ (“NAIC”) Data Security Model Law.

Establishing an aggressive program to protect insurance companies and their consumers from data breaches, House Bill 4655 requires insurers to develop, implement, and maintain a comprehensive information security program based on their risk assessment. Among other provisions, the Bill also establishes requirements for notifying regulators of cybersecurity events, protecting consumer information, and overseeing third-party service providers.

The Bill takes effect on January 1, 2019. Currently, several other states are considering enacting their own legislation regarding cybersecurity based on the NAIC model law.

For any or for assistance in compliance matters pertaining to the South Carolina’s cybersecurity law, please contact Westmont Associates, Inc.

Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services.  If you have any questions, please contact us at (856)216-0220.

856-216-0220

info@westmontlaw.com

William Penn Life Fined $6.3 Million due to Reinsurance Transaction Violations

The New York Department of Financial Services (“NYDFS”) assessed a $6.3 million fine on William Penn Life Insurance Co. (“William Penn Life”) for engaging in improper reinsurance transactions.

 

The NYDFS noted that William Penn Life failed to obtain approval from the NYDFS when executing amendments to existing reinsurance treaties with its European parent and made materially inaccurate statements in response to the NYDFS’ information requests in violation of NY CLS § 1505. The NYDFS requires that domestic controlled insurers entering into reinsurance treaties and agreements with any person in its holding company system notify the superintendent at least forty-five days prior to entering into said agreement. NY CLS § 1505(d)(2).

 

For any questions regarding reinsurance agreement requirements in New York or any other state, please contact Westmont Associates, Inc.

 

 

Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services.  If you have any questions, please contact us at (856)216-0220.


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Cherry Hill, NJ 08003
Phone: 856-216-0220
Email: nancy@westmontlaw.com