South Dakota underinsured motorist coverage exclusion found unenforceable

Streff v. State Farm Mutual Auto. Ins. Co., 2017 S.D. 83, was decided by the Supreme Court of South Dakota on December 13, 2017, affecting coverage in private passenger automobile policies for underinsured motorist coverage.  The Court held that the government vehicle exclusion with respect to underinsured motorist coverage in private passenger auto policies unenforceable, and that […]

Scott White is new Virginia Insurance Commissioner

The Virginia State Corporation Commission has appointed Scott White Commissioner of the Virginia Bureau of Insurance effective January 1, 2018.  He succeeds the retiring Jacqueline Cunningham.  The bureau licenses, regulates, investigates and examines insurance companies, agencies and agents on behalf of the citizens of the Commonwealth of Virginia with a staff of about 195 state […]

Mopeds covered by Uninsured & Underinsured Insurance in South Carolina

South Carolina Auto Insurance must cover moped use under the uninsured motorist and underinsured motorist coverage. On June 21, 2017, South Carolina Director of Insurance Ray Farmer issued Bulletin Number 2017-03.  Mopeds are now included in the definition of a motor vehicle for the purposes of uninsured and underinsured motor vehicle insurance coverages (only) pursuant […]

David Altmaier named Florida Insurance Commissioner

It was announced today (April 29) that David Altmaier, Florida’s current Deputy Commissioner, Property & Casualty, has been unanimously approved by the Florida Cabinet for the position of Insurance Commissioner of the Florida Office of Insurance Regulation. Current Commissioner Kevin McCarty has served as Florida’s chief insurance regulator for over ten years.  He will remain in office […]

Maynard and Vullo New Insurance Commissioners Kentucky & New York

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 […]

Price Optimization – State Regulation Roundup

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 […]

The rest of the Price Optimization story…

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 […]

Cost of Non-Compliance

Stacey English & Susannah Hammond recently published a paper in which they wrote (and it bears repeating as they are so right): The costs and consequences of non-compliance within financial services firms are greater than ever before. The cost for firms of endeavoring to be compliant has been growing in line with the rapid rate […]

Plan For Market Conduct Exams

State insurance departments have been aggressive with market conduct examinations in personal lines (auto and homeowners). We have seen a marked uptick in the frequency of calls asking us to prepare researched responses to the market conduct issues and to negotiate with the examiners to minimize fines, as well as to temper the severity of […]

Insurance Compliance Officers Take Heed of OFAC Mandates

Under a family of related federal laws intended to support U.S. foreign policy and national security goals it is a violation for an insurer to issue a policy, engage in a transaction (including receipt of premiums and payment of claims), or facilitate a transaction with an OFAC Target. These laws are administered by the Office […]