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Florida Senator Seeks to Replace the Existing No-Fault Law

By on February 12, 2019   /   Westmont Wire Category   /   Leave a comment
A Florida Senator is again proposing a measure to eliminate the existing motor vehicle no-fault insurance law and replace it with legislation that will require all drivers to purchase bodily injury and property damage coverage at minimum limits. Senator Jeff Brandes has proposed Senate Bill 896, the Responsible Roadways Act, which seeks to mandate that Florida consumers purchase bodily injury liability coverage at limits of $25,000 per person/$50,000 for more than one person, and $10,000 for property damage. If passed, the Responsible Roadways Act would replace the current no-fault law which provides for $10,000 in personal injury protection coverage, regardless of the insured’s fault in an accident.
The Florida legislature attempted to enact similar legislation in 2017, but neither the House Bill nor the Senate Bill ever reached the Senate floor. Regulators point to unaffordable auto insurance prices and widespread fraud and abuse as reasons to repeal the no-fault system. A Federal Insurance Office study found that nearly 30% of zip codes in Florida are areas in which auto insurance is unaffordable.
For any questions regarding the proposed Responsible Roadways Act or any updates on its progress through the Florida 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.
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New York Issues Guidance on Use of External Data in Underwriting Life Insurance

By on February 12, 2019   /   Westmont Wire Category   /   Leave a comment
On January 18, 2019, the New York State Department of Financial Services (“the Department”) released Insurance Circular Letter No. 1 to advise life insurers regarding the type of data that they may use when underwriting policies.  This guidance was issued after the Department conducted an investigation into insurers’ underwriting guidelines and practices, which followed reports it had received of the emergence of unconventional sources of external data available to insurers.
Circular Letter No. 1 identified two particular areas of concern regarding the use of external data sources, algorithms or predictive models that were identified during the Department’s investigation.  First, the use of such tools might unlawfully discriminate against protected classes of consumers.  Second, such tools often lack transparency for consumers.  In light of these issues, the Department provided specific guidelines on how to apply data and algorithms that help set premium rates. For example, the Department advised that an insurer must determine that external data sources or external tools do not collect or utilize prohibited criteria and, that an insurer may not simply rely on a vendor’s claim of non-discrimination or the proprietary nature of the third-party process.
For information regarding the other guidelines provided by the Department or for assistance in compliance matters relating to external data sources, 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.
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Michigan Seeks to Enact Consumer Rate Relief Programs for No-Fault Insurance

By on February 12, 2019   /   Westmont Wire Category   /   Leave a comment
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.
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Phone: 856-216-0220
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