PIA Meeting with Commissioner Donelon Leads to Temporary Suspension of 12-Month Filing Rule

On December 17, 2020, the Louisiana Department of Insurance (DOI) emailed members of the insurance industry about its decision to temporarily suspend the 12-month filing rule for rate requests due to the unprecedented 2020 hurricane season and the cost of reinsurance. The DOI specifies separate rate filing procedures for property insurance and all other requests. The DOI plans to reinstate the 12-month filing rule on July 1, 2021. To see more details click here.





DOI Bulletin 2020-07 — Timely Payment of Property & Casualty
Claims and Bad Faith Damages


On December 11, DOI issued a bulletin to remind all authorized companies and surplus lines insurers of the statutory requirements placed upon them relative to their obligation as it relates to the timely payment of claims to both first party insureds as well as to third party claimants. To view Bulletin 2020-07, click here.





Mark Your Calendars Now for YIPs Winter Conference
on February 4-5, 2021 in Baton Rouge


The Young Insurance Professionals of Louisiana will pay it forward during their Annual Winter Conference, Thursday, February 4 – Friday, February 5, 2021 at The Hilton Baton Rouge Capitol Center.

At this year's conference, YIPs Gives Back, we will share our passions, and discuss how we can best utilize our talents to empower our neighbors and communities in tangible ways. Our events are streamlined to best maximize your time out of the office. Our two day conference will conclude on Friday afternoon. Be sure to check out the agenda for event information.

To see more details on this year's conference and/or register, click here.





NAIC Adopts Changes to Rebating Model

The National Association of Insurance Commissioners' (NAIC) Executive Committee has adopted language that would allow for some types of "rebates" to be offered to consumers, unanimously approving amendments to Section 4(H) ("Rebating") of the NAIC Unfair Trade Practices Act (Model #880). The revised language will permit insurers or producers to "[o]ffer or give non-cash gifts, items, or services, including meals to or charitable donations on behalf of a customer, in connection with the marketing, sale, purchase, or retention of contracts of insurance…." The amendment leaves open the possibility of a cap on gift amounts to be determined by the state commissioner. The NAIC's Innovation and Technology Task Force has been working on the rebating issue since 2018.

PIA served on the drafting group and recommended edits throughout the process. Many of those suggestions were taken, but not all of them; still, we are comfortable with the new version. The newly revised Unfair Trade Practices Act (UTPA) still limits rebating, just not as dramatically as it did before. The UTPA is just a model; individual states are free to choose how much, if any, of the new language to integrate into their existing law.

States have a patchwork of different rebating rules and laws, only some of which emanate from the UTPA. States' current regulatory and statutory structure governing rebating will inevitably influence the degree to which—and the way—they adopt these changes.





Another Active Hurricane Season?

Dr. Philip Klotzbach, meteorologist at Colorado State University (CSU) specializing in Atlantic basin seasonal hurricane forecasts, isn't letting the fact that the 2020 hurricane season ended just days ago deter him from looking ahead.

Colorado State University's first outlook on the 2021 hurricane season says we might be in for another active year. The early outlook, led by Klotzbach, was released on December 10 and says there is about a six in ten chance of another active hurricane season ahead.

While it is way too early to forecast the number of tropical storms and hurricanes, climatologists are able to look at some of the drivers that may aid or hinder hurricane activity next summer and fall. Two such drivers that Dr. Klotzbach says are key to figuring out how busy next season will be are both related to water — the status of El Niño Southern Oscillation (or ENSO) and how water temperatures in the northern Atlantic change in the next year.

The first quantitative forecast for 2021 will be issued by CSU on Thursday, April 8.







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