Westmont Wire

A homestate is defined as the principal place of business or the residence of an individual.  Since all states do not license Independent Adjusters, some Independent Adjusters will need to designate a homestate if the state they reside in or their principal place of business operates in does not issue an Independent Adjuster license.  Several of the states that do issue Independent Adjuster licenses have recently updated their requirements for licensing and renewing Independent Adjusters without a traditional resident state.  These states are adopting the NAIC guidelines that require individuals without a resident state to officially designate a homestate. This information should be on file with the Department of Insurance for the chosen Designated Homestate and reflected on the national producer database.

For any questions regarding how to confirm your license is compliant or for assistance to make the necessary changes, please contact Westmont Associates.

On February 22, 2018, the Louisiana Department of Insurance issued Bulletin No. 2018-04 reminding all health insurers and health maintenance organizations to submit an updated report of their health insurance products by market, grandfathered health insurance coverage by product, and estimates of the grandfathered population of an issuer by March 1 of each year. This filing requirement is not applicable to health and accident products defined as limited benefits or excepted benefits under the Louisiana Insurance Code.

This report may be completed online in conjunction with the completion of the HIPAA Assessment Worksheet and must be current through December 31st of the previous year.

For any questions or updates regarding the bulletin, please contact Westmont Associates, Inc.

In an effort to set new standards for data security, investigation, and notification of data security practices for insurance providers, the National Association of Insurance Commissioners (NAIC) has drafted the Insurance Data Security Model Law. Sharing similar measures as the New York State Department of Financial Services’ cybersecurity regulation, the model law requires covered companies to enact an information security program, conduct a risk assessment, and perform due diligence of third-party service providers. Unlike New York’s cybersecurity regulation, the NAIC model law identifies 13 specific categories of information to be reported to a state commissioner. In states that adopt the model law, insurers have one year to become compliant with all but the third-party-provider rules, which must be compliant within two years. The Insurance Data Security Model Law now moves on to state legislatures and insurance commissioners to act on the newly proposed statute.

Early indications suggest that insurers currently compliant with New York’s cybersecurity regulations may also be compliant with the NAIC model law. However, certain exemptions expressed in New York’s cybersecurity regulation differ from those of the Insurance Data Security Model Law. Accordingly, it is always best practice to reexamine all internal procedures and confirm compliance.

Please be reminded that all licensed resident and non-resident firms and individuals must file a Certification of Compliance demonstrating full compliance with New York’s cybersecurity regulation by the February 15, 2018 deadline. All additional cybersecurity-related reports, tests, and assessments required by New York’s Cybersecurity Regulations must be completed by March 1, 2018.

For any questions regarding the Insurance Data Security Model Law, or for assistance in compliance matters pertaining to the new law, please contact Westmont Associates, Inc.