Westmont Wire

On March 10, 2018, the Legislature of West Virginia passed Senate Bill 485 regarding rating requirements for commercial insurance lines.

 

Taking effect on June 8, 2018, the Bill amends the West Virginia statute that regulates rate filing (W. Va. Code § 33-20-4) by exempting certain specialty commercial lines from rate filing requirements. In accordance with the newly added provisions W. Va. Code § 33-20-4(1)(3)-(4), the Bill exempts all commercial lines, other than workers’ compensation, medical malpractice liability, nonfleet commercial auto covering four or fewer vehicles, and assigned risk or residual market plans when issued to a commercial policyholder with aggregate annual commercial insurance premiums of $25,000 or more, excluding the four lines specified above. Additionally, W. Va. Code § 33-20-4(a)(5) permits the Commissioner to impose a temporary reinstatement of the rate filing requirements for a specific line of insurance for a period of no longer than one year.

 

For any questions regarding lines of insurance exempted from rate filing, or for assistance in compliance matters pertaining to rate filing, please contact Westmont Associates, Inc.

 

 

Contact Westmont Associates, Inc. Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services.  If you have any questions, please contact us.

 

info@westmontlaw.com | (856) 216-0220 | westmontlaw.com

On March 29, 2018, the South Dakota Division of Insurance issued Bulletin 18-01 which implements a significant change to the Department’s treatment of Defense Within Limits provisions for professional liability products.

 

The Division adds Lawyers Professional Liability to the list of the types of policies in which Defense Within Limits is permitted without the $1 million minimum limit per occurrence requirement. Additionally, the Bulletins allows that other lines of insurance may be permitted without the minimum requirement at the discretion of the Director; however a $1 million option must also be offered. Finally, Fidelity and/or Surety Bonds, which had previously been on both lists, have been removed from the list of the types of policies that required $1 million per occurrence in order to be approved and remain on the list of the types of policies without the requirement.

 

For any questions regarding Bulletin 18-01, or for assistance in compliance matters pertaining to Defense Within Limits, please contact Westmont Associates, Inc.

Contact Westmont Associates, Inc. Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services.  If you have any questions, please contact us.

 

info@westmontlaw.com | (856) 216-0220 | westmontlaw.com

The California Department of Insurance has issued a notice reminding insurers to ensure that their rates are compliant with Proposition 103.

 

Due to the new Federal Tax Schedule for 2018 reducing the corporate tax rate from 35 percent to 21 percent, insurers may have fallen out of compliance with Proposition 103 by charging what the Department considers to be excessive, inadequate, or unfairly discriminatory rates. Proposition 103 implements a prior approval process, limiting the profits and rates of property and casualty insurers. The Notice reminds insurance companies with excessive rates that they are obligated to file a rate change application with the department to ensure they are complying with Proposition 103.

 

At the direction of the Commissioner, the Department commenced a regulatory review of insurer rate compliance following the federal corporate tax rate reduction. Additionally, the Commissioner has updated the Prior Approval Rate Making Regulation to reflect the tax changes.

 

For actuarial assistance in determining compliance and for filings assistance, please contact Wendy Farley ACAS, MAAA Director of Actuarial and Financial Services at wendy@westmontlaw.com or Wes Pohler, Vice President, State Filings at Wes@westmontlaw.com.

Contact Westmont Associates, Inc. Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services.  If you have any questions, please contact us.

 

info@westmontlaw.com | (856) 216-0220 | westmontlaw.com