Westmont Wire

In an effort to set new standards for data security, investigation, and notification of data security practices for insurance providers, the National Association of Insurance Commissioners (NAIC) has drafted the Insurance Data Security Model Law. Sharing similar measures as the New York State Department of Financial Services’ cybersecurity regulation, the model law requires covered companies to enact an information security program, conduct a risk assessment, and perform due diligence of third-party service providers. Unlike New York’s cybersecurity regulation, the NAIC model law identifies 13 specific categories of information to be reported to a state commissioner. In states that adopt the model law, insurers have one year to become compliant with all but the third-party-provider rules, which must be compliant within two years. The Insurance Data Security Model Law now moves on to state legislatures and insurance commissioners to act on the newly proposed statute.

 

Early indications suggest that insurers currently compliant with New York’s cybersecurity regulations may also be compliant with the NAIC model law. However, certain exemptions expressed in New York’s cybersecurity regulation differ from those of the Insurance Data Security Model Law. Accordingly, it is always best practice to reexamine all internal procedures and confirm compliance.

 

Please be reminded that all licensed resident and non-resident firms and individuals must file a Certification of Compliance demonstrating full compliance with New York’s cybersecurity regulation by the February 15, 2018 deadline. All additional cybersecurity-related reports, tests, and assessments required by New York’s Cybersecurity Regulations must be completed by March 1, 2018.

 

For any questions regarding the Insurance Data Security Model Law, or for assistance in compliance matters pertaining to the new law, 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@www.westmontlaw.com | (856) 216-0220 | www.westmontlaw.com

The Louisiana Department of Insurance has issued Bulletin No. 2018-02 to inform all risk bearing entities of the requirements of Act 10 of the 2017 Regular Session of the Louisiana Legislature.    Beginning January 1, 2018, all risk bearing entities must provide current contact information to the Louisiana Department of Insurance and annually certify, by electronic means, the accuracy of the name, mailing address, phone number, and electronic mail address of the individual appointed as their consumer complaint contact, regulatory compliance contact, annual statement contact and premium tax contact.   Life insurers are also required to name a Life Policy Verification Contact and insurers writing automobile liability coverages must name a contact to verify the existence of automobile liability insurance (No Pay- No Play contact).  The updates and annual certification may be submitted through the Licensee Contacts Module of the department’s Industry Access System.  The Uniform Certificate of Authority Corporate Amendment Form 14 may be used to notify the department of the updated contact information; however the annual certification will only be available through the Industry Access System.   A full copy of the Bulletin may be found here.

 

For any questions or updates regarding the bulletin, 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@www.westmontlaw.com | (856) 216-0220 | www.westmontlaw.com

A newly introduced California wildfire recovery legislative package proposes new requirements for property insurers. Among other obligations, the series of assembly and senate bills includes additional requirements for insurers to conduct replacement cost estimates, provide complete policy documents to insureds upon request, make mandatory replacement cost offers, and participate in the Consolidated Debris Removal Program.

Additionally, the bills propose a clarification of the insured’s right to collect full replacement cost of their home and the scope of additional living expenses coverage. Finally, the package offers an extension of the time allowed to rebuild and collect full replacement costs from two to three years.

The package includes Assembly Bill 1772, AB 1797, AB 1799, AB 1800, AB 1875, Senate Bill 897, and one bill yet to be numbered. The bills will reach the committee stage beginning in early February 2018.

For any questions or updates regarding the California wildfire recovery legislation 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@www.westmontlaw.com | (856) 216-0220 | www.westmontlaw.com