Westmont Wire

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.

• 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.

On May 12, 2021, New Jersey Governor Phil Murphy signed Assembly Bill 4805, requiring insurance companies to provide clear and explicit explanations of when business interruption coverage applies and under what circumstances. The bill instructs the New Jersey Department of Banking and Insurance to draft a one-page summary of common clauses approved for use in commercial property and business interruption policies. The language must be simple and explain common events that trigger coverage as well as typical exclusions.

Furthermore, the bill requires insurers to notify current business interruption policyholders if their policy covers losses related to a virus within 30 days of enactment.

For more information on Assembly Bill 4805, or any other questions regarding insurance regulators’ responses to COVID-19, please contact Westmont Associates, Inc.