Maryland’s Data Breach Reporting Law is Effective October 1

By on September 27, 2019   /   Westmont Wire  
Maryland’s data breach reporting law becomes effective on October 1. Recently signed into law by Governor Larry Hogan, the new law adds insurers, nonprofit health service plans, health maintenance organizations, managed care organizations, managed general agents, and third-party administrators to the types of business mandated to report security breaches. The aforementioned licensees will be required to report breaches to the Compliance and Enforcement Unit at the Maryland Insurance Administration.
 
While the law expands the types of businesses under its scope, the reporting requirements remain the same. Businesses that maintain or license computerized data must conduct a “reasonable and prompt” investigation if the business discovers a potential breach. If the business finds that a misuse of personal information has occurred, or is reasonably likely to occur, the business must notify the affected individuals and the Maryland Insurance Administration of the breach and potential misuse of information.
 
On August 29, 2019, Maryland released Bulletin 19-14, further clarifying its position.
 
For more questions about Maryland data breach reporting requirements, or any inquiries regarding data security concerns, please contact Westmont Associates, Inc.

 

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South Carolina Issues Hurricane Assistance Bulletin

By on September 12, 2019   /   Westmont Wire  
In the aftermath of Hurricane Dorian, the South Carolina Department of Insurance issued Bulletin 2019-08 on September 6, 2019, requiring additional assistance from all licensed entities or individuals. The Bulletin requires insurers, HMOs, and other licensed or authorized entities and individuals to assist and work with South Carolina citizens and business impacted by the hurricane by providing additional relief from certain standard requirements.

The Department provides a non-exhaustive list of examples of relief which it expects insurers to extend to citizens and businesses, including: extending premium payment and proof of loss deadlines, allowing additional time before non-renewals or cancellations, waiving limitations relating to the use of out-of-network providers and one early refill or replacement refill for prescription drugs as well as a waiver of fees and penalties relating to any insured’s temporary inability to submit premium payments or otherwise respond as the result of the declared disaster. While the Department maintains that all licensees must comply with South Carolina law, any exceptions or relief focused on providing additional consumer protections and applied consistently to all insureds directly impacted by the hurricane will not be considered unfairly discriminatory.

For more information about South Carolina’s Bulletin 2019-08, or any other regulatory compliance matters, please contact Westmont Associates, Inc.

 

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Florida Grants Insurers the Right to Contribution for Defense Costs

By on September 12, 2019   /   Westmont Wire  

 

In addition to its previously reported surplus lines updates, Florida’s House Bill 301 added a new statute to the Florida Code, Fla. Stat. § 624.1055, which requires any court hearing a liability case to allocate defense costs among all liability insurers who owe a duty to defend the insured against the claim or suit in accordance with the terms of the liability insurance policies. The court is free to use any such equitable factors it determines are appropriate in making an allocation. Any liability insurer entitled to contribution may file an action for contribution in any court of competent jurisdiction.
 
The statute is meant to prevent insurers from avoiding their duty to share in the defense of an insured. It applies to all liability policies issued in Florida or liability policies issued in other states under which the insurer has a duty to defend an insured in suits or actions filed in Florida. It also applies to any liability policy issued under the Florida Surplus Lines Law.
 
For any questions regarding Fla. Stat. § 624.1055, or for inquiries regarding the apportionment of costs, please contact Westmont Associates, Inc.

 

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