The Association of Insurance Compliance Professionals’ annual conference begins on Sunday, October 1st at the Sheraton Seattle Hotel in Seattle, Washington. If you will be in attendance, we welcome you to visit our booth, meet our staff and learn about our services. Feel free to contact us in advance of or during the meeting at John.email@example.com, Wes@www.westmontlaw.com, Erin@www.westmontlaw.com, JoeKeller@www.westmontlaw.com, Angel@www.westmontlaw.com or Sarah@www.westmontlaw.com.
We hope to see you in Seattle!
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Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services. If you have any questions, please contact us.
House Bill 1774, which applies to all insurers covering damage to real property caused by forces of nature, creates a new section of the Texas Insurance Code, §528A, designed to curtail fraudulent and frivolous property damage claims against insurers. Additionally, the Bill provides for revisions to Texas Insurance Code §542.060 which cap the amount of interest applicable to actions brought under the new §528A. Previously, interest on claims payments deemed to be slow, low, or improperly denied, had been assessed at an 18% rate. The new changes effective September 1st will cap interests on payments under §528A to 5% plus either the prime rate as established by the Federal Reserve, 5% if the prime rate is less than 5%, or 15% if the prime rate is above 15%. Some Texas state legislators have called for a delay in the effective date as a result of Hurricane Harvey damage, however at current the Bill is slated to take effect on September 1st as planned.
For further information regarding Texas legislative updates, the applicability of House Bill 1774, or natural disaster claims management, please contact Westmont Associates, Inc.
A revised Data Security Model Law has passed a National Association of Insurance Commissioners (NAIC) cyber-security panel prior to further review and approval at the NAIC Task Force and Executive Committee levels. The model law will require all applicable entities licensed under state insurance laws to implement an information security program. The following revisions have been made in this most recent revision:
- The entities covered under the model act now include foreign assuming insurers domiciled and licensed in a foreign state.
- The adequacy of an information security program will no longer be based upon the size and complexity of a covered entity’s activities, nor on the sensitivity of the nonpublic information at issue.
- Covered entities must require all third-party service providers to implement appropriate measures securing the information accessible to, or held by, the aforementioned service providers.
- Insurers domiciled in an adopting state are now required to submit annual statements certifying compliance with the act. This is opposed to the previous version, which only required statements upon the commissioner’s request.
The triggers for notifying the commissioner of a cybersecurity event or breach have been broadened.Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services. If you have any questions, please contact us.