On February 18, 2020, the Connecticut Insurance Department released a notice reminding property and casualty insurers of two upcoming reporting requirements.
First, Conn. Gen. Stat. § 38a-393 requires insurance companies to report the number of cancellations and refusals to renew professional liability insurance policies in the previous calendar year on or before March 1. Companies must file the report even if there are no cancellations or non-renewals. Please note, the Department Notice states that the report is due on March 31; however, the statute indicates the correct due date of March 1.
Second, Conn. Gen. Stat. § 38a-350 requires all insurers writing automobile liability policies in Connecticut to file for each calendar year in which it writes business in Connecticut, a record of various insured motor vehicle figures, including, but not limited to, the number of such policies non-renewed or canceled, the number of such new policies underwritten, and the total number of such policies in force as of Dec. 31. The report is due 60 days after the start of each year.
The Department has not promulgated a form for use so each insurer must report in a manner that captures all of the required information. For questions about Connecticut property and casualty reporting requirements, or any other reporting needs, please contact Westmont Associates, Inc.
With the nation’s third-highest car insurance rates, Florida has once again begun an attempt to repeal its Personal Injury Protection (PIP) statutes. Representative Erin Grall’s proposed House Bill 771 would remove liability limitations under the current PIP statutes, making at-fault drivers fully liable for the accidents and damages they cause.
HB 771, along with its Senate companion bill, Senate Bill 378, would also set bodily injury liability coverage minimums at $25,000 for the death or injury of one person, $50,000 for the injury or death of two or more people, and $10,000 for property damage. Furthermore, HB 771 requires insurers to offer drivers $10,000 in medical coverage which insureds can opt out of. SB 378 sets the same minimum medical coverage; however, insureds must opt-in under the Senate’s plan.
The bills proposed by the Florida legislature come in an attempt to lower the state’s automobile insurance costs but are opposed by certain groups including insurers, hospitals, and doctors who fear that the change will result in more uninsured drivers and higher health insurance premiums.
For any questions regarding the proposed bills HB 771 and SB 378, or any updates on their progress through the Florida legislature, please contact Westmont Associates, Inc.
Although the NAIC has issued a report praising the adoption of changes which are meant to protect U.S. interests in the negotiation of global insurance capital standards with the International Association of Insurance Supervisor’s (IAIS) the U.S Treasury has expressed dissatisfaction with the proposal.
The Treasury Department and the Federal Insurance Office have objected to the IAIS’ proposal to advance Version 2.0 of the standards into a five year monitoring period. Treasury believes that U.S. insurers should not be forced to participate in the IAIS Version 2.0, which is based on the European Union Solvency II approach, since it is not expected to apply in the U.S. and does not fit U.S. markets. They contend that its application could risk limiting U.S. consumer’s access to long term care products.
ICS Version 2.0, launches in January and while the IAIS cannot force carriers operating in the United States to abide by these standards, it may be able to enforce Version 2.0 on U.S. insurers selling their products globally. Both the NAIC and Treasury have indicated that they will continue to cooperate in the international project and accept those proposals that are in the best interest of U.S. consumers and insurers.
For any additional information regarding the IAIS agreement, or any other compliance needs, please contact Westmont Associates, Inc.
