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Michigan Seeks to Enact Consumer Rate Relief Programs for No-Fault Insurance

On January 15, 2019, the Michigan Senate introduced a bill, Senate Bill No. 1 (“SB 1”), aimed at reducing costs under the current no-fault system. In doing so, SB 1 intends to provide rate relief for consumers, reduce the number of uninsured drivers, and incentivize more automobile insurers to write business in Michigan.
The Michigan Legislature seeks to accomplish these goals by providing consumers with greater discretion when selecting their personal injury protection limits of coverage. As a result, when purchasing an automobile policy, an individual can select the limit of personal injury protection that suits their needs, and the insurance premiums shall be adjusted accordingly. Additionally, seniors and other individuals over 62 years old with lifetime health care benefits can choose not to carry any personal injury protection coverage.
As the bill was only recently introduced, SB 1 is currently pending in the legislature. SB 1 has been referred to the Committee on Insurance and Banking. As it makes its way through the Committee, Senate, and House of Representatives, the bill is subject to changes and modifications. We will continue to monitor its progress and report on any amendments to the bill.
For any questions regarding the proposed SB 1 or any updates on its progress through the Michigan legislature, please contact Westmont Associates, Inc.
856-216-0220
Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services.  If you have any questions, please contact us.

Travel Insurance Model Law Adopted by the NAIC

On December 19, 2018, the National Association of Insurance Commissioners (“NAIC”) adopted a Travel Insurance Model Law after three years of development in the Travel Insurance Working Group. Largely based off the National Council of Insurance Legislators’ (“NCOIL”) March 2017 version, the NAIC Travel Insurance Model Law intends to create a foundation for states to enact regulations to help travel insurance align with to the needs of consumers.
The Model Law classifies travel insurance as an inland marine line of insurance for the purposes of form and rate filings. However, if the travel insurance policy covers sickness, accident, disability or death occurring during travel, either exclusively or in conjunction with related coverages of an emergency evacuation or repatriation of remains, the policy may be filed as either an accident and health product or as an inland marine product.
Additionally, the NAIC Travel Insurance Model Law sets forth standards for a Limited Lines Travel Insurance Producer License with which insurance producers can sell, solicit, and negotiate travel insurance.
For any questions regarding the NAIC’s Travel Insurance Model Law, please contact Westmont Associates, Inc.
856-216-0220
Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services.  If you have any questions, please contact us.

New York Department of Financial Services Cybersecurity: Action Required for Regulated Entities

The New York Department of Financial Services (NYDFS) requires all regulated entities and licensed persons to file the annual Certification of Compliance for calendar year 2018 on or before February 15, 2019. This filing must be completed electronically via the NYDFS cybersecurity portal: https://myportal.dfs.ny.gov/web/cybersecurity.

From the NYDFS: “Certification of Compliance – All Covered Entities and licensed persons who are not fully exempt from the Regulation are required to submit a Certification of Compliance no later than February 15, 2019 attesting to their compliance for the 2018 calendar year.” Please visit:  https://www.dfs.ny.gov/about/cyber_2019_filings.htm for additional information regarding the Certification of Compliance.

If any regulated entity or licensed person qualifies for an exemption or a partial exemption, their prior exemptions for 2017 and 2018 have now expired. To maintain the exemption or partial exemption for 2019, the regulated entity or licensed person must re-submit an annual Notice of Exemption on or before February 15, 2019.

For more information about Exemptions, please visit: https://www.dfs.ny.gov/about/cyber_exemptions.htm. From the NYDFS, here is the exemption guidance:

From the NYDFS, Exemption Guidance:  To complete a Notice of Exemption, you must identify all exemptions that meet your circumstances. The following are explanations of the exemptions provided for in 23 NYCRR 500.19:

  • 500.19(a)(1) – You are entitled to this exemption when a Covered Entity has fewer than 10 employees, including independent contractors.  This is a limited exemption and you must still design and implement a cybersecurity program that meets some but not all the regulatory requirements.  This includes submitting an annual Certification of Compliance.
  • 500.19(a)(2) – You are entitled to this exemption when a Covered Entity has less than $5,000,000 in gross annual revenue in each of the last 3 fiscal years from NY business.  This is a limited exemption and you must still design and implement a cybersecurity program that meets some but not all the regulatory requirements.  This includes submitting an annual Certification of Compliance.
  • 500.19(a)(3) – You are entitled to this exemption when a Covered Entity has less than $10,000,000 in year-end total assets.  This is a limited exemption and you must still design and implement a cybersecurity program that meets some but not all the regulatory requirements.  This includes submitting an annual Certification of Compliance.
  • 500.19(b) – You are entitled to this exemption when you are an employee, agent, representative or designee of another Covered Entity and you are following that entity’s cybersecurity program.  Under this exemption persons do not need to create their own program, but will be required to identify the Covered Entity’s whose program you are following to claim this exemption.  This exemption requires an employee, agent, representative or designee to be fully covered by the program of another Covered Entity. To submit a Notice of Exemption under 500.19(b) you will be required to provide the name and address of the covered entity that supports the cybersecurity program you are following and the name of an appropriate representative who can confirm that cybersecurity program.
  • 500.19(c) – You are entitled to this exemption if you are a Covered Entity that does not utilize an Information System and that does not, and is not required to, directly or indirectly control, own, access, generate, receive or possess Nonpublic Information.  This is a limited exemption and you must still complete an annual risk assessment to confirm that the company continues to be entitled to this exemption and meet some but not all the regulatory requirements.  This includes submitting an annual Certification of Compliance.
  • 500.19(d) – A captive insurance company that does not control nonpublic information other than information relating to its corporate parent company.  This is a limited exemption and you must still complete an annual risk assessment to confirm that the company continues to be entitled to this exemption and meet some but not all the regulatory requirements.  This includes submitting an annual Certification of Compliance.

Contact Westmont Associates if you have any questions or need support in filing your annual Certification of Compliance or Exemption.

856-216-0220

info@westmontlaw.com

https://www.westmontlaw.com/

Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services.  If you have any questions, please contact us.


CONTACT

1763 Marlton Pike East, #200
Cherry Hill, NJ 08003
Phone: 856-216-0220
Email: nancy@westmontlaw.com