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Westmont Wire

New York Takes a Closer Look at Minimum Loss Ratios

Recently, the New York Department of Financial Services (“NYDFS”) has taken a stricter examination of the minimum loss ratio standards for premiums. These standards require a reasonable premium relative to the claims paid under a policy. Failing to meet the minimum standards exposes insurance companies to heavy fines and penalties.

The NYDFS sets forth the required loss ratio for blanket and group health insurance in N.Y. Comp. Codes R. & Regs. tit. 11, § 52.45(f), which states that the minimum loss ratio for group insurance is 65 percent. Among other exceptions, for groups of less than 50 persons at inception, the minimum loss ratio is 60 percent.

The NYDFS monitors insurers’ rates and loss ratio through periodic examinations of each domestic insurance company and reports conducted by other jurisdictions on all foreign insurers. Additionally, the NYDFS may conduct their own examination into any foreign insurer licensed in New York. If these investigations display any deviation from these standards, the NYDFS may impose a civil penalty in addition to any refund to policyholders.

For any questions regarding the loss ratio standards of New York or any other jurisdiction, please contact Westmont Associates, Inc.

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.

Pennsylvania Adopts a Corporate Governance Annual Disclosure Filing Requirement

On October 24, 2018, Pennsylvania signed into law Senate Bill 1205, which adopts the NAIC Corporate Governance Annual Disclosure (“CGAD”) Model Act.

 

Beginning June 1, 2020, all Pennsylvania domiciled insurers, as well as insurance groups of which Pennsylvania is the lead state, must file annual reports detailing the company’s corporate governance framework, policies, and practices.

There are no exemptions for any insurer and the Pennsylvania Insurance Department will not issue a specific form or format in which the filing should be structured. Instead, insurers will create their own description and documentation of their company’s governance.

 

Though very similar to the NAIC Model Act, Pennsylvania’s SB 1205 differs from the NAIC Model Act by considering premium volume, licensing status, and corporate complexity during the Pennsylvania Insurance Department’s evaluation of the CGAD filings.

 

For any questions regarding Pennsylvania’s new Corporate Governance Annual Disclosure, or any other reporting requirements, please contact Westmont Associates, Inc.

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.

North Carolina Issues Bulletin Notifying Insurers of Annual Report Requirements

On October 25, 2018, the North Carolina Department of Insurance issued a bulletin to all property and casualty insurers writing homeowners insurance in North Carolina.

The purpose of the bulletin is to notify insurers of the annual reporting requirements of consent-to-rate data for policies covering the loss to residential real property with not more than four housing units. This annual report must be submitted to the Department by March 15, 2019.

For any questions regarding the North Carolina residential property annual report, or any other reporting requirements, please contact Westmont Associates, Inc.

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.


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