Westmont Wire

The New Jersey Department of Banking and Insurance (via SERFF) has requested that all insurance companies withdraw any pending rate filings. The request is in response to COVID-19 and due to public interest concerns. The NJDOBI advised that any new rate filings will be rejected. The prohibition does not apply to rate filings where ALL POLICYHOLDERS receive rate decreases.  The NJDOBI will reevaluate its position on rate filings at an unknown, future date.

For any questions regarding rate filings, please contact Westmont Associates, Inc.

The New York State Department of Financial Services announced they are extending the deadline for filing the Certification of Compliance pursuant to 23 NYCRR 500 from April 15, 2020 to June 1, 2020 because of COVID-19.

Regulated entities and licensed persons must file their Certification of Compliance for calendar year 2019 on or before June 1, 2020.  All filings should be filed electronically via the New York State Department of Financial Services website at: https://www.dfs.ny.gov/industry_guidance/cybersecurity.

If you have any specific questions, please contact the Westmont team. Stay Well.

On March 17, 2020, Michigan Governor Gretchen Whitmer signed House Bill 5174 into law, amending the Insurance Code regarding the fees that a licensed surplus lines broker or agent may charge. Previously, MCLS § 500.1915 capped such fees at $50 by code ($64 after adjusting for inflation since 2008). Under the new law, licensees can charge a fee for a surplus lines policies in addition to the commission if the fee is not included in the premium as was “reasonable to cover underwriting and other expenses that are unique to surplus lines.”

The requirement applies in general to commercial lines. For personal lines, a licensee can now charge a fee up to the greater of $100 or 10% of the policy premium. The fees must not be excessive or discriminatory and cannot be included in premium to calculate premium taxes. Additionally, fees must be disclosed in writing to the insured prior to the sale and itemized on the policy declarations page, billing statement, and other documentation. Finally, the amendment has removed the inflation adjustment on the fee.

For more information about House Bill 5174 and MCL § 50.1915, or any questions regarding surplus lines brokers, please contact Westmont Associates, Inc.