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Westmont Wire

South Dakota Bulletin Changes Treatment of Defense Within Limits Provisions

On March 29, 2018, the South Dakota Division of Insurance issued Bulletin 18-01 which implements a significant change to the Department’s treatment of Defense Within Limits provisions for professional liability products.

 

The Division adds Lawyers Professional Liability to the list of the types of policies in which Defense Within Limits is permitted without the $1 million minimum limit per occurrence requirement. Additionally, the Bulletins allows that other lines of insurance may be permitted without the minimum requirement at the discretion of the Director; however a $1 million option must also be offered. Finally, Fidelity and/or Surety Bonds, which had previously been on both lists, have been removed from the list of the types of policies that required $1 million per occurrence in order to be approved and remain on the list of the types of policies without the requirement.

 

For any questions regarding Bulletin 18-01, or for assistance in compliance matters pertaining to Defense Within Limits, please contact Westmont Associates, Inc.

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.

 

 info@westmontlaw.com | (856) 216-0220 | www.westmontlaw.com

New Federal Tax Rates Requires California Insurers to Review their Rates

The California Department of Insurance has issued a notice reminding insurers to ensure that their rates are compliant with Proposition 103.

 

Due to the new Federal Tax Schedule for 2018 reducing the corporate tax rate from 35 percent to 21 percent, insurers may have fallen out of compliance with Proposition 103 by charging what the Department considers to be excessive, inadequate, or unfairly discriminatory rates. Proposition 103 implements a prior approval process, limiting the profits and rates of property and casualty insurers. The Notice reminds insurance companies with excessive rates that they are obligated to file a rate change application with the department to ensure they are complying with Proposition 103.

 

At the direction of the Commissioner, the Department commenced a regulatory review of insurer rate compliance following the federal corporate tax rate reduction. Additionally, the Commissioner has updated the Prior Approval Rate Making Regulation to reflect the tax changes.

 

For actuarial assistance in determining compliance and for filings assistance, please contact Wendy Farley ACAS, MAAA Director of Actuarial and Financial Services at wendy@westmontlaw.com or Wes Pohler, Vice President, State Filings at Wes@westmontlaw.com.

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.

 

 info@westmontlaw.com | (856) 216-0220 | www.westmontlaw.com

Independent Adjuster – Homestate Designation

A homestate is defined as the principal place of business or the residence of an individual.  Since all states do not license Independent Adjusters, some Independent Adjusters will need to designate a homestate if the state they reside in or their principal place of business operates in does not issue an Independent Adjuster license.  Several of the states that do issue Independent Adjuster licenses have recently updated their requirements for licensing and renewing Independent Adjusters without a traditional resident state.  These states are adopting the NAIC guidelines that require individuals without a resident state to officially designate a homestate. This information should be on file with the Department of Insurance for the chosen Designated Homestate and reflected on the national producer database.

 

For any questions regarding how to confirm your license is compliant or for assistance to make the necessary changes, please contact Westmont Associates.

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.

 

 info@westmontlaw.com | (856) 216-0220 | www.westmontlaw.com


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