In the News
Regulatory Update

• November 2020
• 

Life Insurance: New York Gov. Andrew Cuomo has signed a bill making it illegal for life insurers to deny a request for coverage solely because the individual has prescribed medications to combat opioid use.

The measure first came up last year when New York officials learned some medical professionals who carried the drugs to be able to save lives were being denied insurance coverage. Naloxone, also known as Narcan, is administered to reverse the effects of an overdose of opioids such as heroin and oxycodone.

Health insurers praised the new law.

New York's Department of Financial Services last year issued a letter recommending insurers discontinue denials of coverage solely because of a prescription of naloxone.

The law signed by Cuomo goes further. It prohibits insurers from refusing to issue any individual a life insurance policy or annuity contract “or adjust the amount of premiums, or rates, charged” for the policy solely because the individual has been prescribed medications used to block the effects of opioids.

Surplus Lines: Texas Insurance Commissioner Kent Sullivan, who stepped down in September, approved a surplus lines stamping fee reduction to 0.075% of gross premium from 0.15%. The new rate takes effect Jan. 1, 2021, the Surplus Lines Stamping Office of Texas said in a statement.

The new stamping fee rate will apply to each new or renewal surplus lines policy with an effective date on or after Jan. 1, it said. The new rate also will apply to policy date extensions effective on or after Jan. 1, it said.

Policies effective on or before Dec. 31 will run to expiration, cancellation, or next annual anniversary date, for multiyear policies, at the previous rate of 0.15%, it said.

The old rate will continue to apply to any subsequent endorsements, audits, cancellations, reinstatements, installments, and monthly or quarterly reports, it said.

Flood Insurance: A new law in South Carolina is designed to boost innovation in flood insurance products in South Carolina by giving insurers the ability to test products in the market.

Gov. Henry McMaster recently signed the South Carolina Private Flood Insurance Act, which should give consumers more choice in flood insurance products, the state Department of Insurance said in a statement.

The act recognizes the various forms of private flood insurance available today—those meeting NFIP standards, discretionary acceptance policies, and any other type of coverage that covers losses resulting from flood, the statement said.

The new law also streamlines the regulatory oversight of forms and rates for private flood insurance coverage; allows for additional underwriting flexibility to incentivize carriers to offer coverage where and when it meets their underwriting criteria; and requires 45 days' notice before a private flood insurance policy is canceled or nonrenewed, it said.