Arizona Governor Doug Ducey has appointed Leslie Hess as the Interim Director of the Arizona Department of Insurance.  The official press release states Hess has been with the Department of Insurance for 12 years as deputy receiver and legal advisor.   She was with the Arizona Legislative Council for 2 years and worked for the Arizona Corporation Commission, Securities Division […]

Brian Maynard and Maria Vullo are the newest state insurance commissioners (1/22/2016).  [Blogger’s Note: April 2017 Commissioner Maynard resigned and Nancy Atkins was appointed KY Commissioner.] Kentucky Governor Matt Bevin has named Brian Maynard as the new Commissioner of the Kentucky Department of Insurance, replacing Commissioner Sharon Clark. Mr. Maynard is a certified financial examiner and has been […]

I have been asked to provide a roundup of the state developments with respect to “price optimization”.  Some states acknowledge that “price optimization” does not have a universally recognized definition.  There is a continually growing number of states that have stated that to the extent “price optimization” involves rating that considers non-risk-related factors such as “price elasticity of […]

As I have been investigating price optimization (PO), I learned that there are two primary concerns:  The first concern is whether the application of PO is a move away from risk based rating.  The second concern is whether PO results in rates that are unfairly discriminatory, particularly to low income consumers.  In other words, would […]

Ohio is now prohibiting price optimization in the calculation of insurance premiums.  Ohio recently became the second state, after Maryland, to explicitly prohibit the use of “price optimization” in the rating of property and casualty insurance policies. Price Optimization Used to Increase Premiums Price optimization considers certain factors–such as the amount or percentage of past premium increases without […]

The federal backstop for terrorism risk insurance has been re-enacted.  TRIA provides for a system of shared public and private compensation for insured losses resulting from acts of terrorism.  TRIA establishes a federal program to provide reinsurance protections to insurance companies following insuring against the damages of terrorism.  Without this backstop from the federal government, insurers […]

Private passenger auto policies commonly excluded liability coverage for “livery” use starting around the middle of 1960, and the courts customarily applied this exclusion where the private passenger auto was used as a taxi (i.e. gypsy cab). As the courts eroded the effectiveness of the exclusion, and for-profit use of the private auto expanded, insurers […]

This is a compilation of my notes on key regulation of Transportation Network Companies (TNCs) and TNC Drivers reported in various insurance industry communications during 2014.  I share it with you as a point of reference covering many key developments being closely watched by the private passenger auto insurance carriers, as the exposure to adjust, defend or […]

The Terrorism Risk Insurance Act (TRIA) will expire at the end of 2014. Objections in the Senate by lame-duck Senator Tom Coburn, (R-OK) on December 16th prevented the passage of Senate Bill 2244, a bill already passed with bipartisan support by the House of Representatives, that would have extended the Terrorism Risk Insurance Act for […]

Mediation has proven time and time again to be a very cost-effective and fair method for resolving disputes.  Far too often the real hurdle to effectuating a settlement is the need for one or more of the parties to “tell their story” so they can purge themselves of the emotional angst.  Most often this is […]