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TDI issues series of Bulletins providing insurance policy guidance due to winter storm

On February 19th, the Texas Department of Insurance (TDI) issued Bulletins # B-0005-21, # B-0006-21, and # B-0007-21 to provide guidance regarding insurance policies addressing the recent winter storm.

Bulletin # B-0005-21 requests that insurers suspend policy vacancy provisions as reasonably necessary. TDI also expects insurers to work with policyholders affected by the disaster who need more time to pay premiums to continue coverage. This may include minimizing penalties or charges for late payments or temporarily suspending payment or repayment plans.

For more details regarding this Bulletin, please see the link HERE.

Bulletin # B-0006-21 was issued as a reminder to insurers regarding emergency adjusters as well as required procedures when handling disaster-related claimed. Some of these procedures include homeowner entitlement to have their home repaired by the person of their choice, insurer refraining from in unfair claim settlement practices, etc.

For more details regarding these procedures can be found HERE.

Bulletin # B-0007-21 requests that insurers do not reclassify, rerate, cancel, nonrenew, or refuse to provide coverage solely because of commercial automobile policyholders helping with the relief effort for the disaster. Additionally, Insurers should not rerate, cancel, nonrenew, refuse to provide coverage, or change a policyholder’s classification or premium solely because a policyholder is a victim of the disaster. TDI also requires that insurers provide reasonable exceptions to an insurer’s rates, rating classifications, or underwriting rules if a consumer’s credit information is directly influenced a catastrophic illness or injury, the death of a family member, and more.

For more details regarding this Bulletin, please see the link HERE.

For more information on these Bulletins, or any other regulatory compliance matter, please contact Westmont Associates, Inc.

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Connecticut DOI further extends effective date of Data Security Act

On February 10th, 2021 the Connecticut Department of Insurance issued Bulletin IC-43 replacing previously issued Bulletin IC-42 regarding data security.
Bulletin IC-43 further delays the effective date of the Conn. Gen. Stat. § 38a-38, the Insurance Data Security Law (“Act”) in accordance with ongoing effects of the pandemic. Because of the Emergency Order issued by the governor on February 8th, 2021 the Act will now have an extended effective date of April 19, 2021.
Please find additional details about this extension and the Act within the Bulletin linked HERE.
For more information on this Bulletin, or any other regulatory compliance matter, please contact Westmont Associates, Inc.
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Texas Proposed Bill requiring Business Interruption Insurance

SB 249 is a Texas Bill recently proposed by Sen. Charles Schwertner, which would require business interruption insurance to “cover loss caused by a pandemic, including loss caused by the order of a civil authority made to prevent the spread of a pandemic.” This would apply irrespective of whether the pandemic caused a direct physical loss to the policyholder’s property.
This requirement would apply to all insurers providing business interruption insurance in Texas, “including a county mutual insurance company, farm mutual insurance company, Lloyd’s plan, and reciprocal or interinsurance exchange.” If passed and signed by the governor, the legislation would apply to policies written or renewed with an effective date on or after Jan. 1, 2022.
For more information on this Bulletin, or any other regulatory compliance matter, please contact Westmont Associates, Inc.
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