Puerto Rico Office of the Commissioner of Insurance Partially Closed for Office Move

By on December 2, 2019   /   Westmont Wire  
The Puerto Rico Office of the Commissioner of Insurance issued CIRCULAR LETTER NO.: CC-2019-1956 -D on November 12, 2019. This notice advised that the Office of the Commissioner of Insurance of Puerto Rico (OCI) will be closing during relocation of the office to San Juan, Puerto Rico. The OCI will be temporarily closed on November 14, 2019 through November 29, 2019 and resume normal operations on Monday, December 2, 2019 at its new location. During this period application processing times will be delayed. Applications submitted during this time through NIPR will be issued or renewed by OCI with the original submitted date. The circular was signed by Javier Rivera-Ríos, Commissioner of insurance.
 
Here is the wording from the Circular:
“Effective November 15, 2019, the Office of the Commissioner of Insurance of Puerto Rico, hereinafter “the OCI,” will relocate its facilities in the World Plaza building in Hato Rey. As part of the moving process, the relocation of our facilities will require the OCI to temporarily suspend operations for the general public for a short period of time, which will allow us to resume providing services normally as soon as possible. To meet this goal, a partial shutdown has been scheduled, during which the general public will not be received at our facilities from Thursday, November 14, until Friday, November 29, 2019. The OCI will resume normal operations on Monday December 2, 2019, on its regular schedule, from 8:00 am to 4:30 pm. The new street address of the OCI is the following:
 
Edificio World Plaza
268 Muñoz Rivera Ave.
San Juan, PR 00918
 
Accordingly, the applicable terms for filing documents or information related to impairment orders, examination reports, annual reports, admissions, mergers, forms and rates filings, license renewals, continuing education, requests for hearings, among others, that are due during the partial shutdown period will be moved up to December 2, 2019, the date on which the OCI will be receiving correspondence at the window.
 
Any applicable terms for the OCI, under the provisions of the Puerto Rico Insurance Code, for the evaluation and approval of forms and rates filings, authorization of insurers, approval of administration agreements, issuance and renewal of licenses, investigations, extensions of time, among others, will be interrupted as of November 14, 2019 and will resume as of December 2, 2019, the date on which the OCI will resume normal operations. The effect of all regular insurance licenses with an expiration date of November 30, 2019, will be extended up to December 13, 2019.”
 
For any questions regarding the Office of the Commissioner of Insurance of Puerto Rico’s relocation or any other regulatory compliance concerns, please contact Westmont Associates, Inc.
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California Extends Notice of Nonrenewal Requirements on Certain Lines of Insurance

By on December 2, 2019   /   Westmont Wire  
On October 12, 2019, California Governor Gavin Newsom signed Assembly Bill 1816 into law. Among other changes to the Code, AB 1816 amends Cal. Ins. Code § 678 to require insurers to provide at least 75 days’ notice before sending a notice of non-renewal of a policy which provides coverage for real property used primarily for residential purposes (homeowners), personal property in which residents of the real property have an interest and legal liability of a natural person or persons. If the insurer fails to provide the 75 days’ notice, the existing policy shall remain in effect with no changes from the date that the notice of non-renewal is actually delivered. This is an increase from the current 45 day notice provision.
 
Additionally, the insurer’s notice shall include a statement that if the insured has contacted the insurer to discuss the non-renewal and is not satisfied with the response, the insured may contact the Insurance department. The notice must provide the insurance departments website, (800) number and mailing address. These changes shall apply to all notices of non-renewal issued on or after July 1, 2020.
 
For any questions regarding nonrenewal notices and Assembly Bill 1816, or any other regulatory compliance concerns, please contact Westmont Associates, Inc.
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California Opens an Investigation into Legality of Affinity Group Discounts

By on September 27, 2019   /   Westmont Wire  
The California Department of Insurance is investigating the legality of discounts offered affinity groups which they claim cause disparities in auto insurance rates that lead to higher rates for lower-income families and communities of color. According to a study conducted by the Department, affinity groups of white-collar occupations and highly skilled jobs receive premium reductions of 1.5% to 25.9%.

The study went on to show affinity group discounts resulted in greater benefits to residents living in ZIP codes with higher incomes and the least benefits to residents of ZIP codes with lower incomes. The data reflected similar relationships between ZIP codes with predominately non-Hispanic white populations and ZIP codes with large minority populations. The discounts often go to groups with higher educational attainment.

A report and hearings by Consumer Watchdog and other consumer groups sparked the Department to conduct the study. The report argued that California’s Proposition 103 does not allow insurers to offer discounts to drivers based on anything other than their driving records. The consumer groups argue that by offering better rates to individuals based on the affinity groups to which they belong, insurers force the poor, under-educated, and minority groups to subsidize the rates of the wealthy. California has already prohibited insurers from using gender as a factor in setting auto rates.

For any questions regarding California’s investigation or any other regulatory compliance concerns, please contact Westmont Associates, Inc.
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