Sample of Compliance Issues We Work With
Given our experience in obtaining approval of hundreds of policy form filings, we often assist insurers to create and/or revise insurance policies, riders and endorsements prior to filing to ensure a prompt review and approval of such forms.
Policy Form Filings
We have particular expertise from 25 years of assisting life and health insurers with policy form filings. Our experience includes fixed, indexed and variable annuities, traditional, indexed and variable life insurance, long-term care insurance, disability income insurance, accidental death & dismemberment insurance, accident insurance as well as all types of related riders and endorsements including waiver of premium, waiver of surrender charge riders, accelerated death benefit riders, chronic illness and terminal illness riders and all others. While we have experience with policy form filings in all states, we have particular expertise in working with the California Department of Insurance in this area.
We assist P&C Insurers to make and process Proposition 103 rate filings in California and we work with insurers to analyze and strategize with respect to rate filing requirements.
We are very familiar with the rapidly evolving legal framework in which property and casualty insurance, life insurance and annuities are sold, and can assist in the creation or attack of regulations as they are being developed, as well as provide analysis of the new rules as they adopted and implemented. We actively monitor regulations proposed by the California Department of Insurance and prepare comments concerning and objections to proposed regulations.
Surplus Lines Issues
In 2010, the Federal Nonadmitted and Reinsurance Reform Act (“NRRA”) which was part of the Dodd-Frank Wall Street Reform and Consumer Protection Act altered the regulatory requirements applicable to surplus line insurers and brokers in dramatic ways, we are familiar with the evolving regulatory requirements, and the issues that are most likely to attract the attention of regulators. We advise surplus lines insurers on formation and eligibility (NAIC List of Alien Insurers or LESLI or LASLI) related issues, as well as provide advice with regard to reporting and other specific issues as and when they arise. We also assist such insurers make the necessary regulatory filings with the appropriate regulators in order to maintain their eligibility.
We have vast nationwide experience relating to the anti-rebate or anti-inducement laws that exist in many states with regard to the payment of money or things of value to non-licensed persons, as well as the de minimis exemption standards that exist. In connection with this we have also provided advice on the structure and content of policy forms and rate filings as a way to avoid rebating issues.
We provide advice concerning compensation of insurance agents and brokers, including contingent commission and profit-sharing arrangements. We also provide advice concerning appointment issues and the payment of monies to persons not appointed. We also provide advice concerning the rules on broker fees and the necessary disclosures.
We have many years experience advising insurers with respect to permissible investments and other investment issues that arise, such as California's recent restrictions on investments in companies that do business in Iran.
Free Insurance Issues
A few states have prohibitions on giving away insurance for free so as to induce the sale of a good or service. Free insurance issues often involve discrimination issues as well as rating issues. We have routinely been engaged to analyze such programs and develop solutions.