Kansas Producer Licensing Reform

On May 25, 2021, the Kansas Insurance Department notified licensees of Senate Bill 37, which impacts producer licensing, appointments, affiliations, and resident licensee requirements. The bill has many different impacts, please see: https://insurance.ks.gov/producer-licensing/Producer-Licensing-Reform-Implementation-FAQ.pdf for the full text.
A select few updates with broad applicability include:
  • Effective July 1, 2021:
  • A company will no longer be required to file appointments for business entities (agencies);
  • The Department will no longer require business entities to report affiliated licensed producers (agents);
  • Licensee’s renewal dates are changing from the producer’s birthday to the last day of the producer’s birth month, in an even or odd year, depending on whether the agent was born in an even or odd year.
  • Effective January 1, 2022:
  • Home and mailing addresses, name changes, email address, regulatory actions, terminations for cause, and new convictions must be reported to the Department within 30 days.
For more information on producer licensing, appointments, or the Kansas Update, please contact Westmont Associates, Inc.
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NJ Insurers Required to Clarify Commercial BI Coverage

On May 12, 2021, New Jersey Governor Phil Murphy signed Assembly Bill 4805, requiring insurance companies to provide clear and explicit explanations of when business interruption coverage applies and under what circumstances. The bill instructs the New Jersey Department of Banking and Insurance to draft a one-page summary of common clauses approved for use in commercial property and business interruption policies. The language must be simple and explain common events that trigger coverage as well as typical exclusions.
Furthermore, the bill requires insurers to notify current business interruption policyholders if their policy covers losses related to a virus within 30 days of enactment.
For more information on Assembly Bill 4805, or any other questions regarding insurance regulators’ responses to COVID-19, please contact Westmont Associates, Inc.
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PA Issues Notice Regarding the Need to Assess the Impacts of COVID-19 Pandemic in Property and Casualty Rate Filing

On April 24, 2021, the Pennsylvania Insurance Department issued Bulletin No. 51 Pa.B. 2363 reminding insurers that they need to continue to account for the impacts of the COVID-19 pandemic in their rate filings.

Insurers must assess the impact of the pandemic on their property and casualty products and explain how it is accounted for in the filing.   The filings should also include five years’ of claim frequency statistics by month on a state and countrywide basis.  If there is an offsetting impact to severity, then the severity information should also be provided.  If insurers believe they have not been impacted by the pandemic, then they must include a section in the rate filing supporting their assessment.

The Department will continue to monitor the situation and will announce when this information is no longer required to be included in the rate filings.

For any questions regarding the Bulletin No. 51 Pa.B. 2363 , or any other rate filing concerns, please contact Westmont Associates, Inc.

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