The Ticker

Insurance business transfer law for transferring blocks of business from companies domiciled outside the state to in-state insurers became effective July 28, and insurance department is developing rules for such transfers at press time.

Gov. Gavin Newsom signs SB 11, allowing FAIR Plan to cover farm and other agribusiness buildings. >> Approves workers compensation rate decrease to $1.41 per $100 of payroll, effective Sept. 1. >> State Superior Court rules insurance commissioner is permitted to require FAIR Plan to cover personal liability on homes it insures but only insofar as the liability is related to damage on the insured property. >> Issues first-ever approval for AI model, an underwriting and rate-setting aid called Z-Fire, which helps insurers improve risk selection and rate filings for wildfires. It was developed by insurtech Zesty.

Gov. Jared Polis signs SB 169, which bans insurer use of external data sources—as well as algorithms and predictive modeling that use external data sources—in ways that result in unfair discrimination against protected classes. >> HB 1276 signed, requiring health insurance plans regulated by the state to offer coverage for alternatives to opioids.

Gov. John Carney signs Senate Substitute 1 for SB 36, now allowing captives to be classified as registered series. Law clarifies parent company provisions and allows captives to enter dormancy after 12 consecutive months (rather than a calendar year) of inactivity. >> U.S. District Court of Connecticut rules in case involving insurance commissioner Trinidad Navarro that his claim against Allied World Surplus Lines was not a “government claim” as defined under insurance. Navarro was serving as liquidator of a risk retention group (Carrier Solutions Risk Retention Group), which the court said meant he was acting as a private receiver on behalf of the insurer. The RRG, which was placed in liquidation by Delaware Chancery Court, was managed by USA Risk Group, which was insured by Allied World.

Office of Insurance Regulation processing Gulfstream Property and Casualty Insurance Company for liquidation after it became insolvent.

Insurance Commissioner John King issues cease and desist order, accusing Nevada-based TRPN DirectPay of operating unlawfully as an unlicensed TPA in Georgia.

Act 111 enacted June 28 and will become effective Jan. 1. It follows NAIC model act on producer licensing and enables the Insurance Division to move to electronic processing of producer licenses. >> Adopts NAIC Insurance Data Security Model Law. Insurers domiciled in the state must be certified as compliant annually by commissioner of insurance. 

Appoints Julia Dreier as director of Insurance Division. She moves from D.C.-based consultancy Impaq International, where she focused on advising Centers for Medicare & Medicaid Services.

Department of Commerce & Insurance hires Martin “Sam” Komo as captive manager. He was with the state Department of Economic Development. >> Gov. Mike Parson signs SB 6, which has several provisions, including changing renewal of insurance producers’ licenses and insurance producers’ surplus lines licenses to every two years on the producer’s birthdate, rather than every two years on the anniversary of the license’s issue date. This act repeals the requirements that in order for an association to be issued a policy of group health insurance, the association shall have been organized and maintained for purposes other than obtaining health insurance, and that the association shall have been in existence for at least two years. It also decrees that no policy of group personal lines property and casualty insurance shall be issued or delivered in the state unless it conforms to one of the categories described in the act. It then details those categories.

Gov. Greg Gianforte signs SB 101 into law, stipulating that direct patient care agreements are not “insurance” and allowing any healthcare provider to enter into these relationships, also known as medical retainer agreements. These agreements typically require the patient to pay a monthly fee in exchange for access to specific, mostly routine services, often at no further charge and outside insurance. Effective Oct. 1.