Westmont Wire

On December 4^th, 2020 the New Mexico Office of Insurance issued Bulletin 2020-023 addressing the prior approval exemption of most commercial insurance products authorized by 13.8.3.9 NMAC.

In light of the COVID-19 health emergency, the Office of Insurance superintendent has expressed concern over permitting the pre-authorization of commercial insurance products, which have the potential to harm New Mexicans in COVID-19 related cases. As a result, the superintendent will not accept new commercial insurance filings that include COVID-19 related changes pending the conclusion of the 2021 New Mexico legislative session. Pending commercial insurance form filings that include COVID-19 related changes will be administratively withdrawn pending the rescission of this bulletin. Any previously approved commercial insurance forms may continue to be sold in New Mexico until further order of the superintendent.

This moratorium is effective as of December 4^th, 2020 and the superintendent will extend this moratorium as necessary to accommodate any new form review standards adopted during the 2021 legislative session.

If you would like to read this New Mexico Bulletin in its entirety, please find the Bulletin HERE.

For more information on this Bulletin, or any other regulatory compliance matter, please contact Westmont Associates, Inc.

On November 2nd, 2020, the Montana Commissioner of Securities and Insurance released a notice which rescinded an Advisory Memorandum issued on January 23, 2013, titled “Form Provisions Limiting Coverage of Defense Expenses, Including Defense Within Limits Provisions – Montana Code § 33-1-502”.

For Commercial lines, any form that is providing Defense within the limits of liability will need to provide, with the submission of forms, the limits that will be offered with that product. A determination will be made with each filing. If it is determined appropriate and will be allowed under the discretion of the Commissioner in compliance with MCA 33-1-502(2).

The Commissioner still requires forms containing defense within limits provisions to include “conspicuous disclosure” of the meaning and implications of those provisions. Defense within limits provisions that lack adequate disclosure may violate insurance consumers reasonable expectations. See MCA 33-1-502(3). The Notice of Recession can be found HERE.

For more information on this Bulletin, or any other regulatory compliance matter, please contact Westmont Associates, Inc.

On November 16^th, 2020, the Alaska Division of Insurance issued Bulletin B20-21 extending review periods for rate, form, and advertisement filings due to COVID related telework orders. Insurers will be permitted an additional 15-days to respond to objection letters for form and rate filings. Furthermore, file and use form filings will automatically be granted a 30-day extension. This is in addition to the standard 30-day review timeframe.

For more details relating to these extension periods, please review the Bulletin HERE.

For more information on this Bulletin, or any other regulatory compliance matter, please contact Westmont Associates, Inc.